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First Eagle Global Top Purchases: Cincinnati Financial Corp., Comcast Corp., FreeportMcMoRan Copper & Gold Inc., Omnicom Group, Grupo Televisa S.A.

November 14, 2009 | About:
(GuruFocus, November 14, 2009) Investment Guru Jean-Marie Eveillard has passed to the torch of managing the First Eagle Global Fund to his hand-picked portfolio managers Matt Mclennan and Abbay Deshpande. Another influential figure, Bruce Greenwald compensates for Jean-Marie’s depart, according to Matt Mclennan in an article published on their website.

In the article, the two new managers wowed to continue the bottom-up approach to “uncover businesses with prudent management and minimal to no use of leverage that were available at low prices”.

The fund churned out 20.31% return YTD through September 30, 2009. It boasts a respectable 1, 5, and 10 year returned of 7.49, 9.69, and 12.86% respectively (Class A, without considering sales charge).

Jean-Marie continues to appear in Media for interviews and the latest one is on October 16, 2009 when he focused on investing in Japan:

We reviewed the fund’s top holdings as of September 3 last month here. Here are the fund’s top purchases during the third quarter of 2009:

No. 1: Cincinnati Financial Corp. (CINF), Buy: 1.06% of the portfolio - Total: 4,400,781 Shares

Cincinnati Financial Corporation offers property and casualty insurance, its main business, through The Cincinnati Insurance Company, The Cincinnati Indemnity Company and The Cincinnati Casualty Company. The Cincinnati Life Insurance Company markets life and disability( income insurance and annuities. CFC Investment Company offers commercial leasing and financing services. CinFin Capital Management Company provides asset management services to institutions, corporations and individuals. Cincinnati Financial Corp. has a market cap of $4.24 billion; its shares were traded at around $26.1 with a P/E ratio of 19.2 and P/S ratio of 1.1. The dividend yield of Cincinnati Financial Corp. stocks is 6.1%. Cincinnati Financial Corp. had an annual average earning growth of 18.5% over the past 10 years.

No. 2: Comcast Corp. Special (CMCSK), Add: 0.68% of the portfolio - Total: 14,058,772 Shares

Comcast Corporation is principally involved in the development, management and operation of broadband cable networks, and in the provision of electronic commerce and programming content. Comcast's commerce and content businesses include majority ownership of QVC, Comcast-Spectacor, Comcast SportsNet, and The Golf Channel, a controlling interest in E! Networks, and other programming investments. (Company Press Release) Comcast Corp. Special has a market cap of $43.42 billion; its shares were traded at around $14.88 with and P/S ratio of 1.2. The dividend yield of Comcast Corp. Special stocks is 1.9%. Comcast Corp. Special had an annual average earning growth of 46.5% over the past 5 years.

No. 3: FreeportMcMoRan Copper & Gold Inc. (FCX), Buy: 0.76% of the portfolio - Total: 1,186,977 Shares

Freeport-McMoRan is engaged in mineral exploration and development, mining and milling of copper, gold, and silver in Indonesia, and the smelting and refining of copper concentrates in Spain and Indonesia. They are the world's lowest-cost copper producer and one of the world's largest producers of copper and gold. FCX's operations are conducted through its subsidiaries, P.T. Freeport Indonesia (PT-FI), P.T. IRJA Eastern Minerals Corporation (Eastern Mining) and through Atlantic Copper, S.A. (Atlantic). Freeportmcmoran Copper & Gold Inc. has a market cap of $35.08 billion; its shares were traded at around $81.57 with a P/E ratio of 30.3 and P/S ratio of 2. Freeportmcmoran Copper & Gold Inc. had an annual average earning growth of 15.1% over the past 10 years.

No. 4: Omnicom Group Inc. (OMC), Add: 0.68% of the portfolio - Total: 5,895,744 Shares

Omnicom Group Inc. provides corporate communications services to clients worldwide on a global, pan-regional, national and local basis. The corporate communications services offered by the company include advertising in various media such as television, radio, newspaper, magazines, outdoor and the internet, as well as public relations, specialty advertising, direct response and promotional marketing, strategic media planning and buying, and internet and digital media development. Omnicom Group Inc. has a market cap of $11.36 billion; its shares were traded at around $36.57 with a P/E ratio of 13.5 and P/S ratio of 0.9. The dividend yield of Omnicom Group Inc. stocks is 1.6%. Omnicom Group Inc. had an annual average earning growth of 12.9% over the past 10 years. GuruFocus rated Omnicom Group Inc. the business predictability rank of 5-star.

No. 5: Grupo Televisa S.A. Global Depositary (TV), Add: 0.72% of the portfolio - Total: 7,531,380 Shares

Grupo Televisa, S.A, is the largest media company in the Spanish-speaking world, and a major player in the international entertainment business. They have interests in Television production, broadcasting, international distribution of television programming, direct-to-home satellite services, publishing, music recording, radio production and broadcasting, cable television, professional sports and show business promotions, paging services, feature film production and distribution and dubbing. Grupo Televisa S.a. Global Depositary has a market cap of $11.91 billion; its shares were traded at around $21.05 with a P/E ratio of 526.3 and P/S ratio of 2.8. The dividend yield of Grupo Televisa S.a. Global Depositary stocks is 3.1%. Grupo Televisa S.a. Global Depositary had an annual average earning growth of 12.3% over the past 10 years. GuruFocus rated Grupo Televisa S.a. Global Depositary the business predictability rank of 3-star.


During the third quarter, Eveillard’s team found it appealing to buy into media companies such as Comcast, Omnicom Group Inc., and Grupo Televisa S.A..

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About the author:

Jae Jun is the author of Old School Value, a value investing blog dedicated to the Old School methodologies and teachings of the investment greats such as Graham, Buffett and Fisher. The blog deals with finding intrinsic value, fundamental stock analysis and special situations including spinoffs and merger arbitrage.

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