Alternative strategies

Carmignac Portfolio Long-Short European Equities

SICAVEuropean marketArticle 8
Share Class

LU0992627371

A high-conviction long/short approach to European equities
  • A bottom-up fundamental approach to maximise long and short alpha generation.
  • Active management of the net equity exposure (-20% to +50%) ensuring great responsiveness to market fluctuations.
Key documents
Risk Indicator
3/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 56.7 %
+ 54.8 %
+ 26.9 %
+ 11.2 %
+ 12.3 %
From 15/11/2013
To 23/04/2024
Calendar Year Performance 2023
+ 2.2 %
- 8.4 %
+ 9.4 %
+ 16.5 %
+ 4.9 %
- 0.2 %
+ 7.1 %
+ 13.3 %
- 6.2 %
- 1.4 %
Net Asset Value
156.7 Fr. CHF
Asset Under Management
521 M €
Market
European market
SFDR - Fund Classification

Article

8
Data as of:  23 Apr 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 Portfolio Long-Short European Equities 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:  29 Mar 2024.
Fund management team
[Management Team] [Author] Heininger Malte

Malte Heininger

Fund Manager

Market environment

The rally continued in March as the AI theme dominated and central banks were more accommodative than expected. The main macroeconomic debate centres on the timing and scope of interest rate cuts in the United States and Europe. US economic data continues to show fairly resilient economic activity, with a stable unemployment rate. Although inflation is still trending towards the Fed’s 2% target, this movement is proving slower and more irregular than had generally been anticipated. Investors are consequently expecting rate cuts to arrive later and be on a smaller scale. The situation in Europe is not so good, with PMIs showing a contraction in the manufacturing industry, even if the signs are that activity could stabilise.

Performance commentary

In March, the fund posted a positive performance, driven by our Long book. On the Technology side, Micron reported strong earnings with the stock up 30% during the month of March. We had a large position through both an equity position and some call options ahead of the results. The company makes high bandwidth memory products, which are proving crucial in the era of AI computing. We think the HBM part of the semiconductor market is benefiting from a strong secular driver, and we are exposed to this theme with our position in SK Hynix as well. We also had a large performance contribution from our position in Prada, which reported solid Q4 sales with 17% organic growth boosted by Miu Miu. Finally, we had a large position in Lonza, which announced the acquisition of one of the largest biologics manufacturing sites in the world by volume rom Roche. This facility expansion led to a mid-term revenue guidance upgrade. On the Short side, we had implemented a large short position in Nike, which had a positive contribution to our alpha. Nike announced at the end of the month that a combination of flat sales and higher costs had seen its fiscal third quarter net income fall by 5%.

Outlook strategy

The net exposure of the strategy stayed steady at the high end of our range; and our gross exposure also stayed stable above 200%. As fundamentals are back at driving stock prices, we continued to reinforce our convictions on both the long and short side and our portfolio is back to a normal level of convictions. On the long side of the book, our portfolio in our Core Long book has been stable with strong convictions in Prada in the Luxury sector, Daimler in the Automotive space, IMI in the Chemicals space and several positions in the Technology sector like ASML, Hynix or SAP; as well as some defensive positions like Novo Nordisk and Deutsche Telekom. On the short side, we continue to find many new names in the Consumer, Industrials and Healthcare spaces with poor balance sheets and deteriorating fundamentals, bringing tightened margins and profit warnings. Overall, we keep strong convictions in our Core Long book and have sized up these positions accordingly. We feel the current environment is quite conducive to our conviction-led portfolio.

Performance Overview

Data as of:  23 Apr 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.Carmignac Gestion Luxembourg SA in its capacity as the Management Company for Carmignac Portfolio, has delegated the investment management of this Sub-Fund to White Creek Capital LLP (Registered in England and Wales with number OCC447169) from 2nd May 2024. White Creek Capital LLP is authorised and regulated by the Financial Conduct Authority with FRN:998349. The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.
Source: Carmignac at 24/04/2024

Carmignac Portfolio Long-Short European Equities Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  28 Mar 2024.
Europe EUR45.4 %
Other countries19.0 %
North America17.5 %
Europe ex-EUR5.7 %
Equity Basket Derivatives-1.0 %
Index Derivatives-43.8 %
Total % of alternative42.9 %
Europe EUR45.4 %
deGermany
20.7 %
nlNetherlands
9.5 %
itItaly
8.6 %
frFrance
6.0 %
ieIreland
2.5 %
beBelgium
1.5 %
Luxembourg
-0.4 %
esSpain
-0.9 %
fiFinland
-2.2 %

Key figures

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

Exposure Data

Data as of:  28 Mar 2024.
Net Equity Exposure42.9 %
Beta+0.1 %
Sortino Ratio+5.0
Number of Holdings41

The strategy in a nutshell

Discover the Fund’s main features and benefits through the words of the Fund Manager.
Fund Management Team
[Management Team] [Author] Heininger Malte

Malte Heininger

Fund Manager
We strive to build a high-conviction portfolio of long and short positions, based on a thorough fundamental company analysis to identify the best opportunities in Europe.
[Management Team] [Author] Heininger Malte

Malte Heininger

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.
Carmignac Portfolio is a sub-fund of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive.
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.