First Eagle Global Equity ETF on Noble Corporation PLC Class A
Thesis
Noble is a deepwater drilling contractor whose shares fell alongside lower oil prices. First Eagle believes the business is relatively insulated from Middle East tensions because its revenue stream is tied to deepwater drilling rather than Strait of Hormuz traffic. The fund expects deepwater activity to benefit from increased upstream exploration and development. That creates a long-duration demand case despite near-term commodity-price weakness.
“We believe that Noble is relatively insulated from tensions in the Middle East.”
Key risks
- Broader declines in oil prices can pressure the shares.