Deshpande said he looks for companies with sound balance sheets, business models, and management teams along with good prices.
Among tech stocks, he said the difficulty lies in finding companies with business models that overlap with his fund’s long-term horizons, because tech companies often have short business cycles.
“If we’re talking about Cisco or Microsoft or Intel , these companies have such scale advantages that it allows us to kind of get more comfortable with investing there,” he said. “And, of course, the prices when we purchased them were quite reasonable, as well.”
Heading into 2012, Europe, Japan, and the U.S. will still serve as a difficult backdrop since stock markets around the world are down for the year.
“Although the prospects don’t look particularly encouraging, at least stock prices are reasonably valued,” he said.
Additional News: Economic Gauge Suggests Brighter Outlook
Additional Views: Technology Companies Sitting on Cash
CNBC Data Pages:
The First Eagle U.S. Value Fund holds shares of Cisco, Google, Intel and Microsoft.