Alternative strategies

Carmignac Absolute Return Europe

FCPEuropean marketArticle 8
Share Class

FR0010149179

An opportunistic and style agnostic long/short approach to European equities
  • A diversified portfolio, based on a top-down and bottom-up approach, to take advantage of market inefficiencies.
  • Active management of the net equity exposure (-20% to +50%).
Key documents
Risk Indicator
3/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 138.1 %
+ 37.1 %
+ 19.5 %
+ 6.5 %
+ 9.1 %
From 02/01/2003
To 12/06/2024
Calendar Year Performance 2023
+ 2.5 %
- 8.0 %
+ 8.9 %
+ 14.6 %
+ 4.4 %
- 1.3 %
+ 5.2 %
+ 12.6 %
- 6.4 %
-
Net Asset Value
430.2 €
Asset Under Management
217 M €
Market
European market
SFDR - Fund Classification

Article

8
Data as of:  12 Jun 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.

Carmignac Absolute Return Europe fund performance

Take a look at the Fund's performance supported by our Fund managers’ market commentary and strategy insight.

Our monthly comments

Data as of:  31 May 2024.
Fund management team

Johan Fredriksson

Fund Manager

Dean Smith

Fund Manager

Market environment

  • May was all about risk as the equity market rose after investors bought into April’s weakness. European equities also recorded their first net inflows of the year.

  • DMs beat EMs, small & mid caps beat large caps, while growth and momentum beat value through the beneficiaries of AI in the technology sector.

  • The Fed held tight, while investors continued to predict the ECB’s first rate cut.

  • Movements in bond yields affected equity markets with investors highly alert to macroeconomic data and inflation figures.

  • After rising at the end of April as inflation picked up, bond yields started to fall again at the beginning of May, partly due to weaker macroeconomic data. Although this development sustained the rally for equities in general, it also led to a degree of rotation with technology, quality and pharmaceuticals leading the way, and tourism, automotive, chemicals and basic resources bringing up the rear.

  • A number of the most neglected companies also spiked on the return of Roaring Kitty, who chatted about his favourite stock, GameStop, but the joy lasted no more than a week.

Performance commentary

  • The Fund delivered a positive return in May.

  • The main contributors to monthly performance were long positions on technology, financial services and communication services, along with short positions on consumer discretionary.

  • At an individual stock level, the big winners were: First Solar – given the need for new energy sources to accelerate AI takeup. Nvidia – another set of solid data. Meta – positive sentiment about the beneficiaries of AI. Microsoft – positivity about announcements of AI products. UBS – strong Q1 results.

Outlook strategy

  • We further expanded our AI beneficiaries theme to include other industries that will help support the use of artificial intelligence.

  • We started looking for companies that might contribute to the production of the green energy so desperately needed to power vital data centres. We strengthened an existing position and opened two new ones, which we think will be very promising as the economy picks up over the years ahead.

  • We added to our quality growth stocks while taking profits on long-term consumer names such as Beiersdorf and Richmont, which had reached our target price.

  • In the consumer discretionary sector, we kept developing our short-selling theme to take advantage of weakening consumer spending trends.

  • In technology, we seized on the short squeeze to add a few new short positions in companies whose fundamentals still look shaky.

  • Our overall gross exposure reached 130%-140% in May, while our net exposure stayed close to its long-term average of +20%.

Performance Overview

Data as of:  12 Jun 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). Morningstar Rating™ :  © Morningstar, Inc. All Rights Reserved. The information contained herein: is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged. From 1 January 2022, the Fund’s investment objective is an absolute performance objective.
Source: Carmignac at 13/06/2024

Carmignac Absolute Return Europe Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  31 May 2024.
Europe EUR24.1 %
North America15.0 %
Europe ex-EUR10.1 %
Other countries6.8 %
Equity Basket Derivatives1.3 %
Index Derivatives-25.6 %
Total % of alternative31.7 %
Europe EUR24.1 %
deGermany
10.3 %
nlNetherlands
6.1 %
frFrance
3.0 %
ieIreland
2.5 %
itItaly
2.3 %
grGreece
0.8 %
Luxembourg
0.1 %
esSpain
-0.1 %
atAustria
-0.3 %
fiFinland
-0.6 %

Key figures

Below are some key figures to help you understand the Fund's management and positioning.

Exposure Data

Data as of:  31 May 2024.
Net Equity Exposure31.7 %
Beta+0.2 %
Sortino Ratio+2.6
Number of Holdings58

The strategy in a nutshell

Discover the Fund’s main features and benefits through the words of the Fund Managers.
Fund Management Team

Johan Fredriksson

Fund Manager

Dean Smith

Fund Manager
Our objective is to provide a long-term absolute capital growth thanks to our dynamic and opportunistic take on European equities.

Dean Smith

Fund Manager
View Fund's characteristics
Reference to certain securities and financial instruments is for illustrative purposes to highlight stocks that are or have been included in the portfolios of funds in the Carmignac range. This is not intended to promote direct investment in those instruments, nor does it constitute investment advice. The Management Company is not subject to prohibition on trading in these instruments prior to issuing any communication. The portfolios of Carmignac funds may change without previous notice.
The reference to a ranking or prize, is no guarantee of the future results of the UCIS or the manager.
The Fund is a common fund in contractual form (FCP) conforming to the UCITS Directive under French law.
The information presented above is not contractually binding and does not constitute investment advice. Past performance is not a reliable indicator of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor), where applicable. Investors may lose some or all of their capital, as the capital in the UCI is not guaranteed. Access to the products and services presented herein may be restricted for some individuals or countries. Taxation depends on the situation of the individual. The risks, fees and recommended investment period for the UCI presented are detailed in the KIDs (key information documents) and prospectuses available on this website. The KID must be made available to the subscriber prior to purchase.). The reference to a ranking or prize, is no guarantee of the future results of the UCITS or the manager.