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First Eagle’s McLennan Explains Value Investing; Fund’s Top Holdings: GFI, BRK.A, NEM, AXP, CTAS

September 08, 2010 | About:
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guruek

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Matthew McLennan, the portfolio manager of First Eagle Global Fund, speaks with Pimm Fox on Bloomberg Television's "Taking Stock." He talks about First Eagle's investment strategy and holdings in bicycle component maker Shimano Inc. and industrial robot-maker Fanuc Ltd.



(Source: Bloomberg)


McLennan is a protégé and successor of legendary investor Jean-Marie Eveillard, who is taking an advisory role of the First Eagle Global Fund. The fund returned 14.2% per year on average since its inception in 1979. quite a track record!

GuruFocus continues to track the fund’s portfolio under the name of Jean-Marie Eveillard.

McLennan apparently inherited the value investing approach that Eveillard has practiced for decades. In the interview he talked about his most important principle is to secure the safety of the principal. To do that, he insists on only buying stocks that have a margin of safety.

In August, McLennan gave an interview to CNBC, in which he also talked about his investments in gold and Japan. In this clip, he also explained why he likes companies like Cintas (CTAS) and Cincinnati Financial (CINF):

http://www.executiveinterviews.net/players/mini/default.asp?order=U13408

Here is to highlight the fund’s top holdings:

No. 1: Gold Fields Ltd. (GFI), Weightings: 3.94% - 41,092,010 Shares

Gold Fields Limited is one of the world's largest unhedged gold producers with operating mines in South Africa, Ghana, and Australia. Gold Fields Ltd. has a market cap of $10.43 billion; its shares were traded at around $14.78 with a P/E ratio of 23.1 and P/S ratio of 2.4. The dividend yield of Gold Fields Ltd. stocks is 1.1%.



Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in a number of diverse business activities. Berkshire Hathaway Inc. has a market cap of $199.53 billion; its shares were traded at around $121150 with a P/E ratio of 23 and P/S ratio of 2.2. Berkshire Hathaway Inc. had an annual average earning growth of 13.2% over the past 10 years.



Newmont Mining Corp. is engaged in the production of gold, the exploration for gold and the acquisition and development of gold properties worldwide. Newmont Mining Corp. has a market cap of $30.09 billion; its shares were traded at around $62.07 with a P/E ratio of 17.6 and P/S ratio of 3.9. The dividend yield of Newmont Mining Corp. stocks is 0.6%. Newmont Mining Corp. had an annual average earning growth of 10.3% over the past 10 years. GuruFocus rated Newmont Mining Corp. the business predictability rank of 2.5-star.



American Express Company is primarily engaged in the business of providing travel related services, financial advisory services and international banking services throughout the world. American Express Company has a market cap of $48.24 billion; its shares were traded at around $40.09 with a P/E ratio of 15.4 and P/S ratio of 2. The dividend yield of American Express Company stocks is 1.8%.



Cintas Corp. provides a specialized service to businesses of all types - from small service and manufacturing companies to major corporations. Cintas Corp. has a market cap of $4.09 billion; its shares were traded at around $26.73 with a P/E ratio of 17.9 and P/S ratio of 1.2. The dividend yield of Cintas Corp. stocks is 1.8%. Cintas Corp. had an annual average earning growth of 3.7% over the past 10 years.



To see the complete First Eagle Global Fund, click: http://www.gurufocus.com/ListGuru.php?GuruName=Jean-Marie+Eveillard.

GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett, Matthew McLennan and Jean-Marie Eveillard for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.


Rating: 2.9/5 (10 votes)

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