The Journey of Jean-Marie Eveillard: From First Eagle Funds Portfolio Manager to Value Investing Legend===

Jean-Marie Eveillard’s journey is one of resilience, perseverance, and an unwavering commitment to the principles of value investing. Over the course of his career, he has experienced numerous market cycles, economic crises, and a rapidly evolving investment landscape. Through it all, he has remained steadfast in his approach, earning him the reputation as one of the greatest value investors of all time.

In this article, we will take a closer look at the life and career of Jean-Marie Eveillard, from his early years in France to his rise as a portfolio manager at First Eagle Funds. We will explore his investment philosophy, the challenges he faced during the 1987 stock market crash and the dotcom bubble, and his enduring legacy as an investor and mentor.

Early Years: From France to America

Born in 1940 in Poitiers, France, Jean-Marie Eveillard grew up in a family of modest means. His father was a history teacher, and his mother was a homemaker. Despite his humble beginnings, Eveillard was a gifted student and earned a degree in economics from the Sorbonne in Paris.

After graduation, Eveillard worked as an analyst for the French stockbrokerage firm, Société Centrale pour l’Industrie. In 1968, he moved to New York to work for the investment firm, Société Générale. It was there that he first became interested in value investing, a philosophy that would shape his career for decades to come.

Career Beginnings: The Birth of First Eagle Funds

In 1979, Eveillard joined the Mutual Shares Fund, a value investing fund run by Max Heine. Four years later, Heine retired, and Eveillard took over as portfolio manager. In 1995, the fund was sold to Franklin Templeton, and Eveillard and his team left to start their own firm, First Eagle Funds.

Under Eveillard’s leadership, First Eagle Funds became one of the most respected names in value investing. He was known for his conservative approach, emphasizing preservation of capital over short-term gains, and his ability to spot undervalued companies in a changing marketplace.

The Art of Value Investing: Jean-Marie’s Investment Philosophy

Eveillard’s investment philosophy was rooted in the teachings of Benjamin Graham and David Dodd, the authors of “Security Analysis” and “The Intelligent Investor.” He believed in buying stocks that were undervalued by the market, with a margin of safety to protect against downside risk.

Eveillard was also known for his contrarian approach, seeking out companies that were out of favor with analysts and the media. He once said, “The best time to buy a stock is when nobody else wants it.”

The 1987 Stock Market Crash: A Turning Point

In 1987, the stock market experienced a sudden and dramatic crash, with the Dow Jones Industrial Average falling more than 22% in a single day. While many investors panicked and sold their holdings, Eveillard held firm. He saw the crash as a buying opportunity, and was able to find undervalued companies that had been oversold.

This experience taught Eveillard an important lesson about the importance of staying true to one’s convictions, even in the face of adversity. As he later reflected, “You can’t let the market dictate what you do. You have to be true to your own principles.”

The Dotcom Bubble: Sticking to Your Principles

In the late 1990s, the dotcom bubble was in full swing, with many investors pouring money into high-flying tech stocks. Eveillard, however, remained skeptical. He saw many of these companies as overvalued and lacking in sustainable business models.

Despite criticism from some investors and analysts, Eveillard stuck to his principles and avoided many of the tech stocks that eventually crashed and burned. This experience reinforced his belief in the importance of doing one’s own research and sticking to a disciplined investment philosophy.

Retirement? Not Quite: Jean-Marie’s Return to First Eagle

In 2004, Eveillard announced his retirement from First Eagle Funds, but he wasn’t done with investing just yet. He continued to work as a senior advisor to the firm, mentoring younger analysts and portfolio managers and sharing his decades of experience in the industry.

In 2010, Eveillard returned to First Eagle as a portfolio manager, taking over the Gold Fund. He continued to work at the firm until his second retirement in 2015, at the age of 75.

Lessons from a Value Investing Legend

Jean-Marie Eveillard’s career offers numerous lessons for investors of all levels. His emphasis on preserving capital over short-term gains, his contrarian approach to investing, and his unwavering commitment to value investing principles are all hallmarks of his success.

Perhaps the most important lesson, however, is the importance of staying true to one’s convictions. In an industry where trends and fads come and go, Eveillard’s ability to remain steadfast in his approach is a testament to the enduring value of value investing.

Staying True to Your Convictions: Jean-Marie’s Legacy

Jean-Marie Eveillard’s legacy extends far beyond his own career. He has inspired countless investors to embrace the principles of value investing and pursue a more disciplined, long-term approach to investing.

His legacy also lives on at First Eagle Funds, where his approach continues to guide the firm’s investment philosophy. As Matthew McLennan, the firm’s current portfolio manager, has said, “Jean-Marie’s fingerprints are all over the way we invest, the culture of the firm, and our values.”

A Continued Impact on Investing: First Eagle’s Success

Under Jean-Marie Eveillard’s leadership, First Eagle Funds grew from a small startup to one of the most respected names in value investing. Today, the firm manages over $100 billion in assets and has a reputation for delivering consistent, long-term returns for its investors.

Eveillard’s approach to investing has also had a broader impact on the industry as a whole, inspiring other investors to take a more disciplined, patient approach to investing and helping to shift the focus away from short-term gains and speculation.

A Life Well-Lived: Jean-Marie’s Impact Beyond Investing

Jean-Marie Eveillard’s impact extends far beyond the world of investing. He is known for his generosity and philanthropy, supporting causes such as education, healthcare, and the arts.

He is also an avid reader and lover of literature, and has been known to quote Shakespeare and other great writers in his investment commentary. His appreciation for the arts and culture is a reminder that there is more to life than just the pursuit of wealth.

The Enduring Legacy of Jean-Marie Eveillard

Jean-Marie Eveillard’s impact on the world of investing is undeniable. His commitment to value investing principles, his contrarian approach, and his ability to stay true to his convictions have made him a legend in the industry.

But his legacy extends far beyond his own career. He has inspired countless investors to embrace a more disciplined, patient approach to investing, and has helped to shift the focus away from speculation and short-term gains.

As Jean-Marie himself once said, “Investing is a marathon, not a sprint.” His legacy is a reminder of the enduring value of patience, discipline, and a long-term perspective in investing and in life.