First Eagle Reflections | 2024-2025 Edition
A legacy of stewardship
- Established in 1864, we’ve navigated diverse market cycles and disruptive events.
- While 2024 showed strong performance, uncertainty remains a key concern.
- Our investment teams provide insights into current risks, opportunities, and their focus on long-term, risk-adjusted results.
- US-China economic bonds are increasingly strained, yet the US adapts well.
- Matt McLennan and Kimball Brooker explore how this shift may create opportunities in differentiated risk and returns.
Homing in on Residential Real Estate Debt
- High home prices and mortgage rates support long-term housing market trends.
- Rajesh Agarwal and Tim Ruberti discuss the favorable environment for private real estate lending opportunities.
- Small cap stocks have underperformed, but factors are aligning to trigger growth:
- Lower interest rates, improved earnings growth, and stronger M&A activity.
- Bill Hench discusses the potential for small caps to rebound.
- Direct lending volumes are recovering, but a surge in deal activity is yet to materialize.
- Michelle Handy and Larry Klaff highlight how private lenders may thrive through cash-flow loans and asset-based lending for attractive returns.
Breaking Ground in Search of Hidden Gems
- The municipal bond market showed signs of recovery in 2024, with potential continued growth in 2025.
- John Miller explores nonrated municipal bonds, offering a differentiated investment approach.
