Fund takes an opportunistic, bottom-up approach
to identifying undervalued small companies in the US with potential
catalysts for improved fundamentals
First Eagle Investments (“First Eagle”) is proud to announce the
three-year anniversary of its First Eagle Small Cap Opportunity
Fund (I-Share Class: FESCX). The Fund seeks long-term growth of
capital by investing in small companies the portfolio management
team believes to be attractively valued and poised to benefit from
catalysts—such as new management, a more favorable business cycle,
product innovation or margin improvement—that will drive recovery
and earnings growth. With assets under management of approximately
$1.9 billion as of March 31, 2024, the Fund’s widespread adoption
since its inception on April 27, 2021, underscores the appeal of
the team’s disciplined, active approach to opportunities on the
smaller end of the capitalization spectrum.
The Small Cap Opportunity Fund is managed by First Eagle’s Small
Cap team, which was formed three years ago with the hiring of
Portfolio Manager and Head of Small Cap Bill Hench, Associate
Portfolio Managers Suzanne Franks and Rob Kosowsky, and Senior
Research Analyst Adam Mielnik. The team subsequently expanded to
include Senior Research Analyst Frank Francese, Research Analyst
Connor Sheehy and Senior Trader Mark Salamone.
“We are excited to mark this significant three-year milestone,”
said Hench. “Launching the Fund amid the dislocations of the
Covid-19 pandemic, our goal was to do our best work to help clients
navigate what figured to be an uncertain and unprecedented
investment environment. We approached the challenge the only way we
know how: through diligent bottom-up research, opportunistic
investing and diversified portfolio construction.”
“While small cap stocks represent a particularly volatile and
inefficiently priced segment of the US equity market, these
dynamics can create opportunities for active, disciplined
investors,” said Frank Riccio, Head of Sales and Strategic
Relationships—US Wealth Solutions. “Bill and his team have been
able to leverage their decades of experience in this space to
deliver strong risk-adjusted returns for our clients during what
has been a particularly challenging three years. We’re excited to
continue providing our clients access to small cap investment
opportunities.”
In addition to I-share class, the fund is also offered as
A-shares (FESAX) and R-shares (FESRX), both of which were incepted
on July 1, 2021.
About First Eagle Investments
First Eagle Investments is an independent, privately owned
investment management firm headquartered in New York with
approximately $138 billion in assets under management as of March
31, 2024.* Dedicated to providing prudent stewardship of client
assets, the firm focuses on active, fundamental and
benchmark-agnostic investing, with a strong emphasis on downside
mitigation. With a heritage dating back to 1864, First Eagle
strives to help clients avoid permanent impairment of capital and
earn attractive returns through widely varied economic cycles. The
firm’s investment capabilities include equity, fixed income,
alternative credit and multi-asset strategies. For more
information, please visit www.firsteagle.com.
* The total AUM represents the combined AUM of (i) First Eagle
Investment Management, LLC, (ii) its subsidiary investment
advisers, First Eagle Separate Account Management, LLC, First Eagle
Alternative Credit (“FEAC”) and Napier Park Global Capital (“Napier
Park”), and (iii) Regatta Loan Management LLC, an advisory
affiliate of Napier Park. The total AUM includes $1.7 billion of
committed and other non-fee-paying capital from FEAC, and $1.8
billion of committed and other non-fee-paying capital from Napier
Park.
First Eagle Investments is the brand name for First Eagle
Investment Management, LLC and its subsidiary investment advisers.
First Eagle Alternative Credit and Napier Park are brand names for
the two subsidiary investment advisers engaged in the alternative
credit business.
Average Annual Returns
Data as of 31-Mar-2024
Calendar YTD
1 Year
Inception
Gross Expense Ratio¹
Net Expense Ratio
Fund Inception Date
First Eagle Small Cap Opportunity Fund
Class A (FESAX) w/o load
5.08%
15.27%
0.95%
1.33%
1.26%
Jul 1, 2021
First Eagle Small Cap Opportunity Fund
Class A (FESAX) w/ load
-0.19%
9.56%
-0.91%
1.33%
1.26%
Jul 1, 2021
First Eagle Small Cap Opportunity Fund
Class I (FESCX)
5.17%
15.59%
2.16%
1.10%
1.01%
Apr 27, 2021
First Eagle Small Cap Opportunity Fund
Class R6 (FESRX)
5.17%
15.57%
1.20%
1.03%
1.01%
Jul 1, 2021
Russell 2000 Value Index2,3
2.90%
18.75%
1.34%
Russell 2000 Index
5.18%
19.71%
-1.27%
The performance data quoted herein represents past
performance and does not guarantee future results. Market
volatility can dramatically impact the fund’s short term
performance. Current performance may be lower or higher than
figures shown. The investment return and principal value will
fluctuate so that an investor’s shares, when redeemed may be worth
more or less than their original cost. Past performance data
through the most recent month end is available at
www.firsteagle.com or by calling 800.334.2143. The average annual
returns are historical and reflect changes in share price,
reinvested dividends and are net of expenses. “With sales charge”
performance for Class A Shares gives effect to the deduction of the
maximum sales charge of 5.00% thereafter. Class I Shares require
$1MM minimum investment and are offered without sales charge. Class
R6 Shares are offered without sales charge. Operating expenses
reflect the Fund’s total annual operating expenses for the share
class as of the Fund’s most current prospectus, including
management fees and other expenses.
1. First Eagle Investment Management, LLC (the ‘‘Adviser) has
contractually agreed to waive and/or reimburse certain fees and
expenses of Classes A, and I so that the total annual operating
expenses (excluding interest charges on any borrowings, taxes,
brokerage commissions and other expenses incurred in placing orders
for the purchase and sale of securities and other investment
instruments, acquired fund fees and expenses, dividend and other
expenses relating to short sales, and extraordinary expenses, if
any) (‘‘annual operating expenses’’) of each class are limited to
1.25%, 1.00% and 1.00% of average net assets, respectively. Each of
these undertakings lasts until February 28, 2025 and may not be
terminated during its term without the consent of the Board of
Trustees. The Fund has agreed that each of Classes A, and I will
repay the Adviser for fees and expenses waived or reimbursed for
the class provided that repayment does not cause annual operating
expenses (after the repayment is taken into account) to exceed the
lesser of: (1) 1.25%, 1.00% and 1.00% of the class’ average net
assets, respectively; or (2) if applicable, the then-current
expense limitations. Any such repayment must be made within three
years after the year in which the Adviser incurred the expense.
2. Inception performance for the indices is as of the Fund A
shares’ inception date, which have the oldest since inception date
for the Small Cap Opportunity Fund.
3. Primary index.
Risk Disclosures:
The value and liquidity of portfolio holdings may fluctuate in
response to events specific to the companies or markets, as well as
economic, political or social events in the United States or
abroad. During periods of market volatility, the value of
individual securities and other investments at times may decline
significantly and rapidly. The securities of small and micro-size
companies can be more volatile in price than those of larger
companies and may be more difficult or expensive to trade.
There are risks associated with investing in foreign investments
(including depositary receipts). Foreign investments, which can be
denominated in foreign currencies, are susceptible to less
politically, economically and socially stable environments,
fluctuations in the value of foreign currency and exchange rates,
and adverse changes to government regulations.
The principal risk of investing in value stocks is that the
price of the security may not approach its anticipated value or may
decline in value.
All investments involve the risk of loss of principal.
Diversification does not guarantee investment returns and does
not eliminate the risk of loss.
FEF Distributors, LLC (“FEFD”) (SIPC), a limited purpose
broker-dealer, distributes certain First Eagle products. FEFD does
not provide services to any investor, but rather provides services
to its First Eagle affiliates. As such, when FEFD presents a fund,
strategy or other product to a prospective investor, FEFD and its
representatives do not determine whether an investment in the fund,
strategy or other product is in the best interests of, or is
otherwise beneficial or suitable for, the investor. No statement by
FEFD should be construed as a recommendation. Investors should
exercise their own judgment and/or consult with a financial
professional to determine whether it is advisable for the investor
to invest in any First Eagle fund, strategy or product.
Investors should consider investment objectives, risks,
charges and expenses carefully before investing. The prospectus and
summary prospectus contain this and other information about the
Funds and may be viewed at www.firsteagle.com. You may also request
printed copies by calling us at 800-747-2008. Please read our
prospectus carefully before investing.
Investments are not FDIC insured or bank guaranteed and may
lose value.
First Eagle Investments is the brand name for First Eagle
Investment Management, LLC and its subsidiary investment
advisers.
The First Eagle Funds are offered by FEF Distributors,
LLC, a subsidiary of First Eagle Investment Management, LLC,
which provides advisory services.
© 2024 First Eagle Investment Management, LLC. All rights
reserved.
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version on businesswire.com: https://www.businesswire.com/news/home/20240429312908/en/
Media First Eagle Investments Pholida Barclay
212-698-3208 pholida.barclay@firsteagle.com
Mount & Nadler Hedda Nadler 212-759-4440
hedda@mountandnadler.com