Matthew McLennan, co-head of First Eagle’s Global Value team, shares insights shaped by his unique upbringing in Papua New Guinea and Australia. He discusses the importance of humility and patience in investing while emphasizing resilience within his portfolio. The conversation touches on the challenges of passive investing, the need for active strategies, and the role of gold and cash in maintaining market health. McLennan also highlights the significance of distinguishing between market noise and enduring trends to create resilient wealth.
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question_answer ANECDOTE
Unusual Upbringing
Matthew McLennan's unusual childhood in Papua New Guinea and off-grid Australia shaped his investment approach.
Living without amenities instilled in him the importance of a margin of safety and long-term resilience.
question_answer ANECDOTE
Gardening Analogy
McLennan connects his family's gardening to his investment philosophy.
Their selective, patient gardening created beautiful settings, mirroring his long-term, resilient investment style.
insights INSIGHT
Mentorship and Succession
Jean-Marie Eveillard, known for eclectic investments and risk mitigation, mentored McLennan.
Eveillard sought a successor with a similar investment philosophy and a collaborative spirit.
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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
Far From The Finishing Post 
