Signs of economic recovery during the second quarter, particularly in China, helped drive the shares of Fanuc (TSE:6954, Financial), which had struggled alongside its industrial client base during the first quarter as factories worldwide began to shut down in response to Covid-19. Post-crisis changes to supply chains may favor companies like Fanuc, a global leader in computerized numerical control devices and robots, as manufacturers seek to automate their local capabilities. In the meantime, substantial net cash on its balance sheet and limited leverage appear likely to enable Fanuc to weather additional economic uncertainty.
From First Eagle Investment (Trades, Portfolio)'s Global Income Builder Fund's second-quarter 2020 letter.
