First Eagle Investment’s Top 5 Trades in the 2nd Quarter


First Eagle Investment
(Trades, Portfolio), a New York-based investment management firm, disclosed this week that its top five trades during the second quarter included a boost to its holding in Alibaba Group Holding Ltd. (BABA, Financial) and reductions to its holdings in Linde PLC (LIN, Financial), Nutrien Ltd. (NTR, Financial), Agnico Eagle Mines Ltd. (AEM, Financial) and American Express Co. (AXP, Financial).

The firm invests based on the conviction that absolute long-term performance is a more efficient way to preserve capital than attempting to compete against short-term movements of index benchmarks. First Eagle applies a bottom-up, fundamental analysis approach to investing and buys stock in companies where intrinsic value and long-term potential outweigh market risk.

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As of June 30, the firm’s $40 billion equity portfolio contains 295 stocks with a quarterly turnover ratio of 0.9%.

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Alibaba

First Eagle purchased 755,081 shares of Alibaba (

BABA, Financial), boosting the position by 79.32% and the equity portfolio by 0.43%. Shares averaged $222.15 during the second quarter; the stock is significantly undervalued based on Wednesday’s price-to-GF Value ratio of 0.54.

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GuruFocus ranks the Chinese e-commerce giant’s profitability 8 out of 10 on several positive investing signs, which include a three-star business predictability rank and profit margins and returns that outperform more than 80% of global competitors.

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Gurus with large holdings in Alibaba include


Baillie Gifford
(Trades, Portfolio),
PRIMECAP Management
(Trades, Portfolio) and
Ken Fisher
(Trades, Portfolio).

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Linde

The firm sold 543,397 shares of Linde (

LIN, Financial), axing 16.95% of the position and 0.41% of the equity portfolio. Shares averaged $291.37 during the second quarter; the stock is significantly overvalued based on Wednesday’s price-to-GF Value ratio of 1.33.

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GuruFocus ranks the U.K.-based gas supplier’s profitability 8 out of 10 on several positive investing signs, which include a three-star business predictability rank, a high Piotroski F-score of 8 and an operating margin that outperforms more than 77% of global competitors.

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Nutrien

The firm sold 2,658,757 shares of Nutrien (

NTR, Financial), dissolving 13.32% of the holding and 0.38% of the equity portfolio. Shares averaged $59.06 during the second quarter; the stock is fairly valued based on Wednesday’s price-to-GF Value ratio of 1.09.

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GuruFocus ranks the Canadian fertilizer company’s financial strength 4 out of 10 on several warning signs, which include a weak Altman Z-score of 1.67 and interest coverage and debt ratios that underperform more than 65% of global competitors.

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Agnico Eagle Mines

The firm sold 1,587,213 shares of Agnico Eagle Mines (

AEM, Financial), chopping 23.19% of the holding and 0.24% of the equity portfolio. Shares averaged $66.58 during the second quarter; the stock is modestly undervalued based on a price-to-GF Value ratio of 0.71.

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GuruFocus ranks the Canadian gold miner’s profitability 7 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7 and an operating margin that has increased by approximately 19.8% per year on average over the past five years and is outperforming more than 83% of global competitors.

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American Express

The firm sold 501,532 shares of American Express (

AXP, Financial), trimming the position 9.84% and the equity portfolio 0.19%. Shares averaged $156.26 during the second quarter; the stock is significantly overvalued based on Wednesday’s price-to-GF Value ratio of 1.45.

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GuruFocus ranks the New York-based credit card company’s profitability 6 out of 10: Although the company has a five-star business predictability rank and a high Piotroski F-score of 8, American Express’ net margin and three-year revenue growth rates outperform just over half of global competitors.

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Gurus with large holdings in American Express include


Warren Buffett
(Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial), Fisher and Dodge & Cox.

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