Under the leadership of Jean-Marie Eveillard, the firm avoided deep losses in 2008. First Eagle Investment Management LLC owns 351 stocks with a total value of $19.9 billion.
Jean-Marie Eveillard is a value oriented investor. His approach to asset management is defined by the conviction that absolute long-term performance is the best way to preserve capital, rather than attempting to compete against the short-term movements of the major indices, and rigorous application of bottom-up fundamental analysis intended to reduce risk. His strategy incorporates on-site research by actively visiting companies and talking to managers to gain rounded, first-hand knowledge of investment prospects. Eveillard buys securities whose intrinsic value and long-term potential outweighs market risk.
Some of his stocks are:
Lake Shore Gold Corp. (LSG):
Lake Shore Gold Corp. strives in the acquisition, exploration, and development of gold properties in northern Ontario and Quebec of Canada, as well as in Mexico.
The company has interests in many properties located in Canada as well as in many projects in Mexico.
The Fenn-Gibb Project, which is located 60 km. east of Timmins alongside the eastern extension of the Destor Porcupine (DPFZ) and Pipestone Fault Zones (PFZ), can potentially host significant underground and open-pit resources. The twin and infill/expansion drilling is conducted as part of a work program to help support an Initial National Instrument (NI) 43-101 mineral resource, which is expected to be released before the end of this year. Lake Shore Gold has put into effect a quality-control program to guarantee the best practice in the sampling and analysis of the drill core.
Agnico-Eagle Mines (NYSE:AEM):
Agnico-Eagle Mines Limited is a Canadian-based gold producer with operations in Canada, Finland and Mexico, and exploration and development activities in Canada, Finland, Mexico and the U.S. Agnico-Eagle Mines Limited is based in Toronto, Canada.
The company has achieved rapid growth during the past few years. Indeed, it ended the year with $141 million in cash against $650 million in debt and a debt/capital ratio of roughly 15%.
Expectations for the future are positive.
All of Agnico's producing assets are in the relatively stable and mining-friendly countries of Canada, Finland, and Mexico. Gold companies tend to be countercyclical. They also provide an excellent hedge to inflation risk.
Eveillard increased his position in the last quarters and added considerably in the Q3 2011. The stock is almost 40% down from the price he bought.
Walter Energy Inc.(WLT):
Walter Energy is a leading U.S. producer and exporter of premium metallurgical coal for the global steel industry and also produces steam coal and industrial coal, metallurgical coke and coal bed methane gas.
It is divided into segments. The Natural Resources segment consists primarily of Jim Walter Resources, Inc., Tuscaloosa Resources, Inc., Taft Coal Sales & Associates and United Land Corporation. The Financing segment includes Walter Mortgage Company, services non-conforming installment notes and loans that are secured by mortgages and liens. The Homebuilding segment includes Jim Walter Homes, Inc., which is an on-your-lot homebuilder.
Financially speaking, third quarter earnings per share showed a clear rise mainly due to the addition of the western coal business, which added to the volumes; and also from better realized prices.
Walter Energy will certainly benefit from the addition of the new business and expansion in Canada and U.K. over the longer term.
WLT is undervalued when I see the FAST Graphs charts, that shows me the correlation between price, normal P/E (blue) and justified earnings valuation price (orange line).
Medicis Pharmaceuticals Corporation A (MRX):
Medicis develops dermatology and cosmetic products. Nearly 70% of the company's revenue comes from its top three products and less than 5% of sales are international.
Management maintains a strong balance sheet, which helps mitigate Medicis higher-risk operations. The company has no net debt and ended 2010 with about $700 million in cash.
Medicis owns a stake in Revance Therapeutics, which is developing a topical botulinum toxin that could change industry treatment of facial wrinkles and exists as the only competitor to Allergan's Botox in the largely profitable neurotoxin market.
Finally, Medicis faces little impact from health-care reform, and Medicare and Medicaid make up only a small fraction of the company's reimbursement.
Eveillard Initiated a position in MRX in the last quarter.
Bank of New York Mellon (NYSE:BK):
Bank of New York is a bank holding company and one of the world's larger financial institutions. They provide comprehensive financial services to individuals, small and mid-sized businesses, multinational corporations, financial institutions, governments and public agencies worldwide.
BNY Mellon is financially healthy. Capital levels have recovered from recent lows, the valuation of the bank's securities portfolio bounced back from the trough, and profits are set to improve from recent levels.
Its immense size helps it obtain economies of scale in a highly competitive environment. The bank's balance sheet growth is largely driven by deposits placed by custody clients. This provides a cheaper and more stable source of funding than tapping the capital markets.
Eveillard considered BK a very attractive buy when the stock went to the $19-21 level.