First Eagle Investment Management Investor Presentation — December 2020

Document content

Global Value Team Annual Letter

Those who think it’s possible to predict the future of economies and

markets with any sort of accuracy would have a hard time explaining

2020—a year dominated by a black swan event that descended upon

the world with little warning and even less indication of the breadth and

depth of its impact. In December 2019, no serious economist or public

health official was predicting the emergence of a novel coronavirus that

would cause nearly two million deaths worldwide and provoke a deep

and widespread recession. Similarly, we know of no prognosticators who

forecasted, at the depths of the Covid-19 selloff, that nearly all major

equity markets not only would recover their losses by the end of the year

but many would also close 2020 at or near all-time highs.

At First Eagle, we have long accepted that the future is unknowable.

As such, we orient our true north around the creation of resilient

wealth in the face of complexity and uncertainty, striving to create

all-weather portfolios that mitigate the permanent capital impairment

no matter what surprises tomorrow may bring. We cast a wide net to

identify businesses with scarce, durable assets that we believe have the

potential to generate persistent earnings power over time, and we seek