First Eagle: Mutual Funds That Only Contrarians Can Love
The Street - about 3 years
NEW YORK ( TheStreet ) -- The First Eagle mutual funds appear to be out of step with the markets. In a year when stocks have been soaring, most First Eagle managers have held gold and big stakes in cash. That has hurt returns. For the past year, First Eagle Overseas and First Eagle US Value have lagged more than 90% of their peers, according to Morningstar. But longtime shareholders should not be surprised by the weak results. For decades, the funds have followed a conservative approach. Although it has often lagged in rallies, First Eagle's cautious strategy has produced sterling results in downturns.
By limiting losses in hard times, the company has generated winning long-term records. During the past 10 years, First Eagle Overseas returned 9.9% annually, outdoing 95% of foreign large blend funds. First Eagle U.S. Value returned 8.4% annually, topping 85% of large blend funds. First Eagle Fund of America and First Eagle Global both topped more than 90% of their peers over the pa
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