NEW YORK–(BUSINESS WIRE)–First Eagle Investments (“First Eagle”) announced today that it has expanded its portfolio offering to non-US investors by launching its US small-cap strategy within First Eagle’s Irish UCITS platform. Launched by First Eagle in February 2022, the Sub-Fund pursues an opportunistic small-cap value strategy. It invests in companies that the portfolio management team believes are attractively valued and have the potential to benefit from a catalyst – such as .
The strategy will be managed by First Eagle’s small-cap team, formed in April 2021 with the addition of portfolio manager Bill Hench, associate portfolio managers Suzanne Franks and Rob Kosowsky, and senior research analyst Adam Mielnik. All four were previously at Royce Investment Partners, where they managed the portfolios of a US mutual fund, a UCITS fund and a collective investment trust, with Hench listed as one of the portfolio managers since 2004. The small-cap team then added trader/analyst Mark Salamone and analyst Connor Sheehy in October 2021 and July 2022, respectively.
“We believe skilled active managers can take advantage of the numerous inefficiencies in the US small-cap market to offer differentiated investment solutions,” said Matthieu Louanges, Global Head of Institutional and International Wealth Management at First Eagle. “Bill and his team have focused on the US small-cap market for many years, and our London and Munich-based account management teams are excited to offer existing and prospective UCITS clients access to this proven, value-driven strategy to provide structure.”
First Eagle’s U.S. small-cap strategy takes an opportunistic but disciplined approach to bottom-up portfolio construction, employing internal fundamental research to identify companies that are performing poorly due to inefficiently priced assets, turnaround potential and accelerated but temporary appear mispriced by the market – overlooked earnings growth or unconfirmed market leadership. True small-cap specialists, the team typically holds 180-300 stocks — including microcap stocks with market caps under $1 billion — to provide broad security-level diversification.
“Small-cap stocks represent a particularly volatile and inefficiently valued segment of the US stock market,” Hench said. “However, historically this dynamic has also created opportunities for disciplined active managers to generate attractive long-term returns for investors through diversified portfolios of undervalued small-cap names. We are pleased to offer our expertise in this area to investors outside of the US.”
The US small cap strategy is offered through a sub-fund of First Eagle’s Irish UCITS vehicle with three types of share classes (Retail, Advisory and Institutional) denominated in three currencies (US Dollars, Euros and Sterling). The UCITS fund is currently available for public offering and sale in Austria, Belgium, France, Germany, Ireland, Luxembourg, the Netherlands, Portugal and Spain and is available to eligible investors in Switzerland and the UK. First Eagle plans to register the UCITS fund for distribution in additional countries in the near future. This latest sub-fund complements First Eagle’s growing UCITS platform, which launched in May 2021 with the launch of a sub-fund offering its International Value strategy (global ex-US).
About First Eagle Investments
First Eagle Investments is a privately held, independent investment manager headquartered in New York with approximately $101.6 billion in assets under management as of June 30, 2022. (On a pro forma basis, including the recent acquisition of Napier Park Global Capital , First Eagle’s total assets under management is approximately $121.1 billion as of the same date.) Dedicated to the prudent management of client assets, the firm focuses on active, fundamental and benchmark-agnostic investing with a strong emphasis on mitigation of losses. With a heritage dating back to 1864, First Eagle has helped clients avoid permanent capital depreciation and achieve attractive returns through widely differing economic cycles – a tradition that is at the heart of its mission today. The firm’s investment opportunities include equity, fixed income, alternative credit and multi-asset strategies. For more information about First Eagle, visit www.firsteagle.com.
Pro forma total assets under management (AUM) represent the combined assets under management of First Eagle Investments and Napier Park Global Capital as of June 30, 2022. It includes $1.5 billion in committed and other non-fee-paying capital from First Eagle Alternative Credit and $0.9 billion in committed and other non-chargeable capital from Napier Park, including assets managed by Regatta Loan Management LLC. Pro forma results are for illustrative purposes only and are not actual performance results. Pro forma results reflect a business combination that has not yet occurred and actual performance results may differ materially.
IMPORTANT INFORMATION FOR INVESTORS
This is a marketing communication. The material is for informational purposes only and should not be construed as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all companies or individuals. This press release does not constitute or contain any offer, solicitation, recommendation or investment advice with respect to the purchase of any Sub-Fund or any security described herein.
The investment vehicle referred to in this material has been established as an Irish variable capital collective management investment vehicle incorporated as an umbrella fund with segregated liability between its sub-funds incorporated under the laws of Ireland (registration number 445369) (the “ICAV”) . . Prospective investors should carefully review a Sub-Fund’s objectives, risks, charges, taxation and expenses and other relevant information before investing. For this and other information about the ICAV, please refer to the ICAV’s Prospectus, Sub-Fund Supplement and applicable KIIDs and read them carefully before investing and before making any final investment decisions. This is not a contractual document; do not base any final investment decision on this announcement alone.
Investing in a Sub-Fund involves risk; Capital loss is possible. There is no guarantee that a Sub-Fund’s investment objectives will be achieved. In relation to the US small cap strategy, investments in small and micro companies have historically been more volatile in price than securities of larger companies, particularly in the short term. Positions in small and micro companies can also be more difficult or expensive to trade. Reasons for the greater price volatility include the less certain growth prospects of small and micro companies, less liquidity in the markets for such securities and the greater sensitivity of small and micro companies to changing economic conditions. Value investments involve the risk that they will never reach their presumed full market value or that they will lose value.
Further information on these risk considerations, as well as information on other risks to which the Sub-Fund is exposed, such as liquidity, market and investment strategy risks, is contained in the ICAV’s prospectus.
The prospectus for the ICAV is available on the First Eagle website and at www.fundinfo.com. The KIIDs are also available on the First Eagle website and are available in one of the official languages of each EU Member State where the Sub-Funds have been registered for marketing under the UCITS Directive 2009/65/EC.
Prospective investors should also consult their professional advisers as to the suitability of an investment in relation to their particular circumstances and nationality, domicile or domicile. The ICAV has been authorized in Ireland as a UCITS under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, as amended.
Shares in the ICAV are only available to certain non-US persons in select transactions outside the United States or, in certain circumstances, otherwise in transactions exempt from the registration requirements of the United States Securities Act of 1933, as amended, other applicable US laws.
The ICAV is currently available for public offer and sale in Austria, Belgium, France, Germany, Ireland, Luxembourg, the Netherlands, Portugal and Spain and is available to eligible investors in Switzerland and the United Kingdom, each in accordance with applicable law.
The views expressed herein represent the opinion of First Eagle and are not intended as a forecast or guarantee of future results for any product or service.