In any market environment we're trying to support a material income stream while maintaining the focus on avoiding permanent impairment of capital that is central to our investment approach at First Eagle.
Establish and maintain a consistent, long-term allocation to high yield bonds, and entrust invested assets to experienced market professionals for active, tactical positioning within the asset class over time.
"Why should you, as an investor, have a treasury bond that you know can’t give you more than the nominal rate of 1.6% for the next 10 years? In my view, why would you not want to own equities? If you’re going to own a piece of paper that is a claim on a return, do you want that claim to be a fixed claim or a claim that has at least some ability to potentially grow." - Harold Levy
"Some investors believe that because a holding company’s discount can persist, they may not generate a positive return on such a position. If a holding company can increase its economic earnings, however, even if the market multiple remains the same the investor may realize meaningful gains."
"We are finding a lot of value right now in large capitalization stocks. Over the last 10 years, small- and mid-cap stocks have nearly tripled the return of the large-cap stocks. This has set up a wide dispersion of valuation levels."
"We believe that there’s value in high yield in today’s environment, with spreads in the area of 750 basis points over Treasuries. An important fundamental concept about the high-yield cycle is that at every stage, investors are responding to the historical environment, what has been happening in their recent memory, not what is happening in the current environment."
"When investing for long-term goals, investors need strategies that can deliver returns that beat inflation, particularly in a low interest-rate environment. Equity investments can provide that opportunity."