| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
First Eagle's 2025 performance validated their contrarian positioning as gold surged 60% and non-US stocks outperformed US markets for the first time since 2017. The firm's disciplined approach focuses on resilient wealth creation through assets with scarcity value that can participate in nominal economic drift. Key holdings include Grupo Mexico for copper exposure, TSMC for AI semiconductor leadership, and Bio-Rad for healthcare diversification. The team sees significant fat-tail risks from massive sovereign debt and geopolitical bifurcation, while persistent deficit spending creates policy dilemmas between inflation and recession risks. In credit markets, they observe late-cycle behavior with deteriorating underwriting standards, positioning defensively with emphasis on selectivity. Municipal bonds absorbed record issuance driven by infrastructure needs. Small caps may benefit from earnings recovery and supportive monetary policy. The firm completed organizational changes including Genstar Capital's majority investment and plans to acquire Diamond Hill Investment Group, positioning for expanded capabilities while maintaining investment discipline focused on downside protection and long-term compounding.
First Eagle emphasizes resilient capital in pursuit of long-term returns through thoughtful allocations to risk assets with scarcity value, focusing on fixed positional assets like gold and quality equities that can participate in nominal drift of the economy while providing downside mitigation during challenging periods.
The team remains purposeful in their approach to resilient wealth creation, following a path that can keep pace with nominal drift while providing downside mitigation. They believe this hinges on identifying assets with scarcity value and acquiring them at a margin of safety. Despite strong markets creating confidence, significant fat-tail risks persist including massive sovereign debt loads and shifting geopolitical alliances.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 5 2026 | 2025 Q4 | BIO, GMEXICOB.MX, TSM | AI, Copper, global value, gold, infrastructure, municipal bonds, private credit, small cap |
TSM BIO |
Gold set more than 50 record nominal highs in 2025, surging about 60% year-to-date through November. Central bank purchases have exceeded 1,000 tonnes in each… |
| Oct 22 2025 | 2025 Q3 | - | fiscal policy, Global Equities, gold, inflation, valuation | - | First Eagle notes that U.S. equities remain richly valued while non-U.S. markets benefit from renewed fiscal spending and a weaker dollar. The firm observes unusual… |
| Jul 22 2025 | 2025 Q2 | - | Balance Sheets, capital preservation, diversification, inflation, Resilience | - | The commentary focuses on building resilient portfolios amid elevated geopolitical, inflationary, and policy risks. The manager stresses diversification, downside protection, and balance sheet strength as… |
| Apr 3 2025 | 2025 Q1 | - | - | - | - |
| Jan 8 2025 | 2024 Q4 | - | - | - | - |
| Oct 22 2024 | 2024 Q3 | - | - | - | - |
| Jul 26 2024 | 2024 Q2 | - | - | - | - |
| May 7 2024 | 2024 Q1 | - | - | - | - |
| Jan 24 2024 | 2023 Q4 | - | - | - | - |
| Sep 30 2023 | 2023 Q3 | - | - | - | - |
| Aug 22 2023 | 2023 Q2 | CCL, CCSI, CNC, MERC, PFC, PRAA, UNFI | - | - | - |
| Apr 27 2023 | 2023 Q1 | - | - | - | - |
| Jan 13 2023 | 2022 Q4 | - | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
CopperCopper gained over 42% in 2025 and continued its move higher after bottoming during the pandemic. Copper finished up 21.43% in Q4 alone, benefitting from multiple underlying fundamental and macro drivers. The metal's strong performance contributed to Materials sector dominance. |
Copper Miners Base Metals Industrial Metals Commodity Cycle | |
GoldGold experienced its best annual return since 1979 driven by seemingly insatiable appetite, entering bubble territory. The precious metal drove the Small Resources index to a 45.3% increase in the December half. |
Gold Precious Metals Bubble Resources | |
Infrastructure SpendingGerman-led defense and infrastructure spending in Europe includes €1 trillion of planned spending on defense and infrastructure. This fiscal stimulus should support mid-cap companies and sectors tied to capital expenditure, construction, and industrial modernization. |
Defense Construction Fiscal Stimulus Europe | |
Private CreditPrivate equity and debt markets face significant challenges with funds struggling to exit investments at elevated prices. The industry has taken more companies into funds than can be sold into public markets, creating a major logjam. Rising interest rates and overinvestment have caused pressure to reduce prices, potentially forcing substantial losses. |
Credit Stress Alternative Asset Managers Liquidity Leverage Distressed | |
| 2025 Q3 |
AIAI has become a dominant theme across major equity indices, with Nvidia leading the S&P 500, ASML dominating MSCI EAFE, and TSMC leading emerging markets. The fund benefited from AI-related dynamics, particularly through Samsung's memory products experiencing substantial price increases due to DRAM shortages driven by AI demand. |
Semiconductors Memory DRAM Technology Nvidia |
GoldGold experienced its best annual return since 1979 driven by seemingly insatiable appetite, entering bubble territory. The precious metal drove the Small Resources index to a 45.3% increase in the December half. |
Gold Precious Metals Bubble Resources | |
| 2025 Q2 |
Resilience2025 tested the fund's thesis severely with a bankruptcy, major customer losses, and cyber-attacks, yet delivered 17.45% net returns. The manager emphasizes that edge comes from exploiting inefficiency rather than avoiding adversity, demonstrating portfolio resilience through active management. |
Adversity Active Management Drawdowns Volatility |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 5, 2026 | Fund Letters | James Fellows | TSM | Taiwan Semiconductor Manufacturing Company Limited | Information Technology | Semiconductor Foundries | Bull | New York Stock Exchange | AI, CapEx, Foundry, scale, semiconductors | Login |
| Jan 5, 2026 | Fund Letters | James Fellows | BIO | Bio-Rad Laboratories, Inc. | Health Care | Life Sciences Tools & Services | Bull | New York Stock Exchange | diagnostics, Governance, healthcare, lifesciences, Recurringrevenue | Login |
| TICKER | COMMENTARY |
|---|---|
| BIO | Healthcare has been out of favor in recent years, weighed down by post-Covid headwinds, but we find the highly regulated sector to be structurally attractive given growing demand and significant barriers to entry. With a market cap around $6.5 billion, Bio-Rad Laboratories is smaller than our typical investment, but the company dominates the niches it serves within the areas of life-science research and diagnostics. Vertical integration historically has resulted in strong recurring revenue for the company, and its diversified customer base has further supported stability. Notably, Bio-Rad maintains a one-third stake in German biopharma company Sartorius that has grown significantly since its purchase and provides Bio-Rad with an economic exposure beyond its core businesses. |
| GMEXICOB.MX | Grupo Mexico is a holding company with mining, transportation and infrastructure operations. Primarily through its listed subsidiary Southern Copper, Grupo Mexico's mining business comprises more than 80% of earnings. With the largest reserves of any copper producer and mines well positioned on the cost curve, Grupo Mexico controls long-duration assets that are nearly impossible to replicate. Despite its high-quality characteristics, Grupo Mexico—like many holding companies—trades at a discount to the sum of its parts; Grupo Mexico's stake in publicly traded Southern Copper alone exceeds its own market cap by more than $30 billion. Bolstered by an attractive dividend, Grupo Mexico has delivered compelling, long-term total returns despite the holding-company discount. |
| TSM | TSMC leads the MSCI Emerging Markets Index as the manufacturer in the AI ecosystem. |
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