First Eagle Small Cap Opportunity Fund Class A (FESAX)

Overview

The fund is designed for investors looking to capitalize on opportunities within the small- and micro-cap sectors of the market. Managed by a team of advisers, their strategy focuses on investing in what they believe to be undervalued equity securities, aiming to exploit market inefficiencies and the potential for significant growth among smaller companies. By committing at least 80% of its net assets, alongside any borrowings for investment purposes, to small-cap companies, the fund seeks to provide a route for investors to potentially benefit from the dynamism and growth potential associated with these entities. Additionally, recognizing the ever-evolving nature of global markets, the fund also allows for up to 10% of its assets to be invested in foreign issuers, thereby offering a measure of diversification across geographical boundaries.

Products and Services

• Equity Securities of Small- and Micro-Cap Companies
  

  The primary focus of the fund, investing in equity securities of small- and micro-cap companies presents a strategic approach to capitalize on undervalued opportunities. This investment in companies at the lower end of the market capitalization spectrum is based on the premise that small- and micro-cap stocks are often overlooked by the broader investment community, potentially leading to undervaluation. The fund aims to identify and invest in these opportunities, seeking to benefit from their growth potential.

• Opportunistic Investment Strategy
  

  The fund’s investment strategy is characterized by seeking opportunistic situations for undervalued securities. Through a rigorous analysis conducted by its advisers, the fund positions itself to take advantage of market inefficiencies and the inherent potential for growth in undervalued small- and micro-cap companies. This proactive approach to investment seeks to generate returns through strategic asset selection and timely market engagement.

• Foreign Issuer Investments
  

  Understanding the value of diversification and the global nature of markets, the fund allows for up to 10% of its net assets to be allocated towards securities of foreign issuers. This facet of the fund’s investment strategy enables exposure to international markets, thereby potentially enhancing the portfolio’s risk-return profile. Investing in foreign issuers offers the fund an avenue to capitalize on opportunities beyond the domestic market, tapping into the growth potential of companies in various economies around the globe.