How First Eagle Investment Management Changed Their Portfolio in Q4 2022

As the last quarter of 2022 comes to a close, investors are looking back at the changes made by investment management firms in their portfolio holdings. First Eagle Investment Management, LLC is one of those firms, and their 13F holdings have undergone some notable changes. In this blog post, we will take a closer look at the changes in First Eagle's portfolio and what they could mean for their investors.

Introduction

First Eagle Investment Management, LLC is an independent asset management firm that specializes in global value investing. The firm has been around for more than 50 years and has managed to navigate some of the toughest market conditions in history. Their investment philosophy is centered around investing in quality companies with competitive advantages and buying them at a discount to their intrinsic value. First Eagle's Q4 2022 13F filings reveal some changes in their portfolio holdings that investors should keep an eye on.

The Changes

According to the filing, First Eagle's biggest exit was its holdings in FNF, where they sold all of their shares during the quarter. The firm also reduced its holdings in XOM and TRV by 14.1% and 32.9%, respectively. On the other hand, First Eagle's biggest increase was in its holdings in SLB, where they added 51.4% more shares. Other notable increases include HCA with 33.9% and NEM with 15.7%. Let's take a closer look at some of these changes.

Exit from FNF

First Eagle's exit from FNF came as a surprise to many investors. The company is a provider of title insurance, mortgage services, and other real estate services. At the end of Q3, FNF was one of First Eagle's top holdings, so the complete exit from the stock is a notable change. However, it's worth noting that FNF has been on a downward trend, with its stock price down more than 20% since the start of the year. First Eagle's exit could be a result of a loss of confidence in the company's ability to recover.

Reduction in XOM and TRV Holdings

First Eagle reduced its holdings in XOM and TRV by 14.1% and 32.9%, respectively. XOM is an oil and gas company that has struggled to maintain profitability in recent times due to declining oil prices. TRV, on the other hand, is an insurance company that has been impacted by rising claims costs. These changes suggest that First Eagle may have lost confidence in the future earnings potential of these companies.

Increase in SLB and HCA Holdings

First Eagle increased its holdings in SLB and HCA by 51.4% and 33.9%, respectively. SLB is a leading supplier of technology, integrated project management, and information solutions to the oil and gas industry. The increase in holdings of SLB suggests that First Eagle believes that the oil and gas industry will recover and that SLB is well-positioned to benefit from this recovery. HCA is a healthcare services company, and the increase in holdings could be a result of First Eagle's bullish outlook on the healthcare sector.

Conclusion

The changes in First Eagle's portfolio holdings in Q4 2022 suggest that the firm is anticipating some significant changes in the market. The exit from FNF and the reduction in XOM and TRV holdings indicate a decline in confidence in these companies' future earnings potential. On the other hand, the increase in SLB and HCA holdings suggest First Eagle is more bullish on the prospects of the oil and gas and healthcare industries, respectively. Investors should pay attention to these changes as they may have implications for the broader market and individual stocks.