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First Eagle Global's Deshpande Finds Value in High Quality US Companies: FE, TXN, LO, KLAC, PXD

September 26, 2010 | About:

Abhay Deshpande is one of the hand-picked successor of Jean-Marie Eveillard, a legendary value investor, for managing First Eagle Global Fund. The fund returned 14.2% per year since January 1, 1979. Deshpande talked about his investment strategy and where he found value nowadays with Matt Miller and Carol Massar on Bloomberg Television's "Street Smart."

(Source: Bloomberg)

Surprisingly, the global fund manager stated the place to find value is actually very close to home. Echoing some of other investment guru’s point of view, Deshpande sees value in high quality US companies. Another area he sees value is stocks in Japan. Further, Deshpande expressed some contrarian views towards emerging markets such as those of China, India, and even HongKong.

Deshpande would not elaborate on individual names of the stocks that he has been buying, but GuruFocus members have benefits of knowing these are the top purchases of the fund in the second quarter of this years:

No. 1: FirstEnergy Corp. (NYSE:FE), Add: 1.67% of the portfolio - Total: 6,987,093 Shares

FirstEnergy Corp. is a diversified energy services holding company as the result of the merger of Ohio Edison Company and Centerior Energy Corporation. Firstenergy Corp. has a market cap of $11.61 billion; its shares were traded at around $38.1 with a P/E ratio of 10.9 and P/S ratio of 0.9. The dividend yield of Firstenergy Corp. stocks is 5.7%. Firstenergy Corp. had an annual average earning growth of 3.9% over the past 10 years.[/size]

[size=13.5pt;mso-bidi-font-size:11.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";color:black">[/size]

No. 2: Texas Instruments Inc. (NASDAQ:TXN), Add: 1.02% of the portfolio - Total: 9,053,291 Shares

[size=13.5pt;mso-bidi-font-size:11.0pt;font-family: "Times New Roman","serif";mso-fareast-font-family:"Times New Roman";color:black">Texas Instruments, Inc. is a global semiconductor company and one of the world's designers and suppliers of digital signal processors and analog integrated circuits, the engines driving the digitization of electronics. Texas Instruments Inc. has a market cap of $32.19 billion; its shares were traded at around $26.93 with a P/E ratio of 13 and P/S ratio of 3.1. The dividend yield of Texas Instruments Inc. stocks is 1.8%. Texas Instruments Inc. had an annual average earning growth of 4.2% over the past 5 years.


No. 3: LORILLARD, INC (LO), Buy: 0.88% of the portfolio - Total: 1,703,720 Shares

LORILLARD is the third largest manufacturer of cigarettes in the United States. Lorillard, Inc has a market cap of $12.35 billion; its shares were traded at around $81.4 with a P/E ratio of 13 and P/S ratio of 2.3. The dividend yield of Lorillard, Inc stocks is 5.5%.

No. 4: KLATencor Corp. (NASDAQ:KLAC), Buy: 0.88% of the portfolio - Total: 4,394,169 Shares[/size]

KLA-Tencor Corporation is one of the world's suppliers of process control and yield management solutions for the semiconductor and related microelectronics industries. Klatencor Corp. has a market cap of $5.61 billion; its shares were traded at around $33.45 with a P/E ratio of 21.7 and P/S ratio of 3.2. The dividend yield of Klatencor Corp. stocks is 2.9%.

No. 5: Pioneer Natural Resources Company (NYSE:PXD), Buy: 0.87% of the portfolio - Total: 2,038,407 Shares

Pioneer Natural Resources is an oil and gas exploration and production company with ownership interests in oil and gas properties located in the United States, Argentina, Canada, South Africa and Gabon. Pioneer Natural Resources Company has a market cap of $7.51 billion; its shares were traded at around $64.76 with a P/E ratio of 60.5 and P/S ratio of 4.4. The dividend yield of Pioneer Natural Resources Company stocks is 0.1%. Pioneer Natural Resources Company had an annual average earning growth of 6.2% over the past 10 years.<

Check out the complete stock portfolio of First Eagle Global, click http://www.gurufocus.com/holdings.php?GuruName=Jean-Marie+Eveillard.

GuruFocus provides these kind of real time information and insights of Investment Gurus such as Warren Buffett 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.


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