Show notes
Matthew McLennan is co-head of First Eagle’s Global Value team and one of the portfolio managers of Global Value, a strategy that has delivered strong long-term compound returns. We discuss the importance of humility and patience, why resilience is emphasised throughout the portfolio, and how Global Value has survived and thrived across a broad range of market environments. Show notes:[01:24] How an unusual childhood informed Matt’s approach to investing[03:52] Succeeding Jean-Marie Eveillard[05:46] Continuous refinement of the investment kernel[07:04] Successful succession planning[09:45] Sustaining success over different market cycles[12:15] Important character traits and attributes[17:01] Impact of passive investing[19:20] The benefits of having a Senior Advisor Board[22:09] What value investing means to First Eagle[26:38] Endogenous integrity with the capacity to suffer[28:40] Discerning between secular change and noise[33:44] Approach to asset allocation[35:46] Benefits of owning gold[37:45] Role of cash in the portfolio[40:11] High valuations and prospective returns[42:51] Gold miners vs bullion[44:41] Understanding the process of growth and the role of endogenous confidence cycles