The First Eagle Global Fund (A shares) returned 14.58% for the third quarter compared to theMSCI World Index return of 17.45%.
Markets around the world rose again in the third quarter of 2009. The French CAC 40 Indexand the German DAX Index did particularly well, rising 21% and 18%, respectively benefitingfrom hopes of a recovery and plentiful liquidity. The MSCI World Index increased 17% duringthe three month period while in the U.S., the S&P 500 Index rose 16%. However, in Japan, theNikkei 225 Index rose only 2% following signs of a re-emerging deflationary environment andweak export statistics. Energy was unchanged during the quarter at $70 a barrel. The U.S. dollarfell 4% against the Euro and 7% against the Japanese yen. At the end of the quarter, goldreached $1,008 per ounce, an increase of 9% during the period.
Industrials, precious metals and consumer staples stocks made the greatest positive contributionsto the portfolio during the quarter. Individual stocks that added to returns were AmericanExpress (U.S.), Misumi Group (Japan), Gold bullion (U.S.), Secom (Japan) and PargesaHolding (Switzerland). Combined, these five securities added 2.9 points to the performance ofthe portfolio. Conversely, stocks that detracted from the performance of the portfolio includedAlliant Techsystems (U.S), Wellpoint (U.S), Sompo Japan Insurance (Japan), Deceuninck(Belgium) and Land Co. (U.S). In aggregate, these five securities subtracted 0.09 points from theportfolio’s performance.
As of September 30th, the portfolio was 92.3% invested with 7.7% of total assets in cash.We remain 30% hedged versus the Japanese yen and 60% hedged versus the Euro. We alsoinitiated a 100% hedge on the Mexican peso.
As long term investors, our approach to dealing with the current uncertainty is to be primarilyowners of enterprises, favoring those we view as having entrenched market position, latency inpotential cash flows, prudent management, strong balance sheets and most importantly modestprices. We believe such businesses can better endure current and future uncertainties and canbetter sustain real purchasing power in the long term.
Markets around the world rose again in the third quarter of 2009. The French CAC 40 Indexand the German DAX Index did particularly well, rising 21% and 18%, respectively benefitingfrom hopes of a recovery and plentiful liquidity. The MSCI World Index increased 17% duringthe three month period while in the U.S., the S&P 500 Index rose 16%. However, in Japan, theNikkei 225 Index rose only 2% following signs of a re-emerging deflationary environment andweak export statistics. Energy was unchanged during the quarter at $70 a barrel. The U.S. dollarfell 4% against the Euro and 7% against the Japanese yen. At the end of the quarter, goldreached $1,008 per ounce, an increase of 9% during the period.
Industrials, precious metals and consumer staples stocks made the greatest positive contributionsto the portfolio during the quarter. Individual stocks that added to returns were AmericanExpress (U.S.), Misumi Group (Japan), Gold bullion (U.S.), Secom (Japan) and PargesaHolding (Switzerland). Combined, these five securities added 2.9 points to the performance ofthe portfolio. Conversely, stocks that detracted from the performance of the portfolio includedAlliant Techsystems (U.S), Wellpoint (U.S), Sompo Japan Insurance (Japan), Deceuninck(Belgium) and Land Co. (U.S). In aggregate, these five securities subtracted 0.09 points from theportfolio’s performance.
As of September 30th, the portfolio was 92.3% invested with 7.7% of total assets in cash.We remain 30% hedged versus the Japanese yen and 60% hedged versus the Euro. We alsoinitiated a 100% hedge on the Mexican peso.
As long term investors, our approach to dealing with the current uncertainty is to be primarilyowners of enterprises, favoring those we view as having entrenched market position, latency inpotential cash flows, prudent management, strong balance sheets and most importantly modestprices. We believe such businesses can better endure current and future uncertainties and canbetter sustain real purchasing power in the long term.
