Adviser, First Eagle Investment Management
March 13, 2014
Gates Capital Management's Excess Cash Flow (ECF) Value Funds have returned 14.5% net over the past 25 years, and in 2021, the fund manager continued to outperform. Due to an "absence of large mistakes" during the year, coupled with an "attractive environment for corporate events," the group's flagship ECF Value Fund, L.P returned 32.7% last Read More
“We don’t look at gold as a commodity, but as a form of insurance against what Peter Bernstein calls extreme outcomes. In most circumstances in which worldwide equity markets would go down – and not just for a week or two – the price of gold would go up, providing a partial offset to the hits we’d take in our equity portfolio”.
“In general, there aren’t many countries in which we wouldn’t invest. But if a country is too economically or politically prevail, we pass. The main country in which we won’t invest today is Russia. There’s still too much risk for foreign (or even local) investors that you’ll think you own an asset and then Mr. Putin decides you don’t”.
“The knock on diversified funds is that they’re index-huggers, which given the geographic breadth of where we invest, is not at all the case for us. I know the argument that you should only own your best 30 or 40 ideas, but I’ve never proven over time that I actually know in advance what those are”.
“Our cash balance is purely a residual of whether or not we’re finding enough to invest in”.
“If one is wrong in judging a company to have a sustainable competitive advantage, the investment results can be disastrous”.
“Top executives from a Japanese property company and casualty insurer we’ve owned for years just in our office last month explaining the extent of the CDO exposure in their investment portfolio, which was upsetting to us. We said,”Didn’t the fact that you were buying a triple-A rated product with a yield much in excess of what you could get from The Procter & Gamble Company (NYSE:PG) sound too good to be true?”. But that kind of thing happened around the world.
- a b “Jean-Marie Eveillard”. panachemag.com. Retrieved 2010-03-09.
- a b Birger, John (19 June 2007). Eveillard: A value maestro’s encore. FORTUNE Magazine. Retrieved 2010-03-09.
- “Jean-Marie Eveillard and Ralph Wanger to Receive Fund Manager Lifetime Achievement Awards at Morningstar Investment Conference”. Morningstar.com. 26 June 2003. Retrieved 2010-03-09.
- “Columbia Business School Directory”.
Video Lecture at Ivey School in 2014: