Is it Still Safe to Own BAE Systems (BAESY)’s Stock?

First Eagle Investments is an independent, privately owned asset management firm dedicated to serving the needs of individuals and institutions worldwide as well as the financial professionals that advise them. Recently, the fund published its “First Eagle Investments Overseas Fund” second-quarter 2022 investor letter – a copy of which can be downloaded here. Overseas Fund A Shares, without a sales charge, posted a return of -9.05% in the second quarter of 2022. All regions detracted from performance, with notable weakness in developed Europe. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, First Eagle Investments Overseas Fund mentioned  BAE Systems plc (NYSE:BAESY) and explained its insights for the company. Founded in 1999, BAE Systems plc (NYSE:BAESY) is a Farnborough, United Kingdom-based aerospace company with a $27.4 billion market capitalization. BAE Systems plc (NYSE:BAESY) delivered a 17.43% return since the beginning of the year, while its 12-month returns are up by 11.74%. The stock closed at $34.98 per share on September 02, 2022.  

Here is what First Eagle Investments Overseas Fund has to say about BAE Systems plc (NYSE:BAESY) in its Q2 2022 investor letter:

“BAE Systems is the largest defense contractor in the UK. The company’s large, long-term fixed contracts with governments generate recurring revenue streams and provide cyclical resilience. Heightened geopolitical tensions have driven expectations for increased defense spending globally, which has been a tailwind for the stock. In addition, rising long-term interest rates have eased the company’s pension liability, removing an overhang from the stock.”

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Our calculations show that BAE Systems plc (NYSE:BAESY) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. BAE Systems plc (NYSE:BAESY) delivered a -10.26% return in the past 3 months. In July 2022, we also shared another hedge fund’s views on BAE Systems plc (NYSE:BAESY) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.