First Eagle Overseas Fund

Scorecard
4 / 5 Stars
Lipper
3 1 5 4 2
Zacks Investment Research
3 (Hold)
Standard & Poor's
3 / 5 Stars
TheStreet.com
D (Sell)

#53 in Foreign Large Blend

U.S. News evaluated 209 Foreign Large Blend Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Performance

The fund has returned 12.37 percent over the past year, 6.63 percent over the past three years, 14.87 percent over the past five years, and 9.70 percent over the past decade.

Trailing Returns Updated 02.28.2014
Year to date 2.8%
1 Year 12.4%
3 Years (Annualized) 6.6%
5 Years (Annualized) 14.9%
10 Years (Annualized) 9.7%

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Summary

First Eagle Overseas is overdue for a good year.

As of March 05, 2014, the fund has assets totaling almost $14.72 billion invested in 158 different holdings. Its portfolio consists of shares of companies that span the market-capitalization spectrum.

The last time this fund outperformed on a relative basis was 2008, when it landed in the top 2 percent of its Morningstar category. Since then, it's been a bumpy ride. In 2011, the fund's exposure to Japan has held it back. As of the end of the first quarter, 40 percent of its stock holdings were tucked away in Japan. In the aftermath of Japan's earthquake and nuclear scare, many of those companies were hammered. Still, the fund's hefty exposure to a single country is contrasted by a tendency towards broader diversification. For instance, the fund owns upwards of 100 companies, and it also mixes in a variety of assets, including gold and bonds. Currently, management also has a substantial portion of the portfolio tucked away in cash. The fund has returned 12.37 percent over the past year and 6.63 percent over the past three years. 

Historically, this fund has often been been hit-or-miss. Since 2001, it has finished three separate years in the bottom 20 percent of its Morningstar category. But it has also finished the same number of years in the top 5 percent. All told, the good has outweighed the bad. The fund has returned 14.87 percent over the past five years and 9.70 percent over the past decade. 

Investment Strategy

According to the fund's prospectus: "The Overseas Fund may invest in any size company, including large, medium and smaller companies. The Overseas Fund may invest in fixed-income securities, short-term debt instruments, gold and other precious metals, and futures contracts related to precious metals. The investment philosophy and strategy of the Overseas Fund can be broadly characterized as a 'value' approach, as it seeks a 'margin of safety' in each investment purchase with the goal being to avoid permanent impairment of capital (as opposed to temporary losses in share value relating to shifting investor sentiment or other normal share price volatility). In particular, a discount to 'intrinsic value' is sought even for the best of businesses, with a deeper discount demanded for companies that we view as under business model, balance sheet, management or other stresses." 

Role in Portfolio

Morningstar calls the fund a "core" holding. 

Management

A team of three managers runs the fund.

Fees

First Eagle Overseas Fund has an expense ratio of 1.15 percent. 

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Risk

Like all stock funds, this one comes with some risks.

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