Alternative strategies
Carmignac Portfolio Merger Arbitrage Plus
Luxembourg SICAV sub-fundGlobal marketArticle 8Share Class
LU2601233948
An active absolute return strategy focusing on merger arbitrage opportunities
- An active merger arbitrage strategy that aims to provide positive absolute returns, with limited correlation to equity markets.
- An alternative strategy with a socially responsible investment approach, focusing on officially announced M&A deals in the developed markets.
Key documents
Risk Indicator
3/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
Cumulative Performance 10 YearsCumulative Performance 5 YearsCumulative Performance 3 YearsCumulative Performance 12 Months
+ 7.4 %
0.0 %
0.0 %
0.0 %
+ 5.0 %
To 05/09/2024
Calendar Year Performance 2014Calendar Year Performance 2015Calendar Year Performance 2016Calendar Year Performance 2017Calendar Year Performance 2018Calendar Year Performance 2019Calendar Year Performance 2020Calendar Year Performance 2021Calendar Year Performance 2022Calendar Year Performance 2023
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+ 4.1 %
Net Asset Value
107.38 $
Asset Under Management
147 M €
Market
Global market
SFDR - Fund Classification
Article
8
Data as of: 5 Sep 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 Merger Arbitrage Plus 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 Jul 2024.Fund management team
Fabienne Cretin-Fumeron
Fund Manager
Stéphane Dieudonné
Fund Manager
Performance commentary
The fund posted a positive performance over the month.
The main positive contributors to performance were Cerevel, Catalent and Southwestern Energy.
The main detractors from performance were Spirent and Tellurian.
Outlook strategy
The fund's investment ratio remained relatively stable at around 110%.
With x positions in the portfolio, diversification remains satisfactory.
2024 should see a resumption of the M&A cycle, driven in particular by falling interest rates, the energy transition affecting many sectors of the economy, the return of private equity funds and changes to stock market regulations in Japan.
The risk premium on the Merger Arbitrage strategy currently offers investors returns that are still attractive, especially in an environment where deal failure rates remain low.
Performance Overview
Data as of: 5 Sep 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.
Source: Carmignac at 08/09/2024
Carmignac Portfolio Merger Arbitrage Plus Portfolio overview
Below is an overview of the composition of the portfolio.Geographical Breakdown
Data as of: 30 Aug 2024.| North America | 59.2 % |
| Europe ex-EUR | 17.6 % |
| Others | 12.6 % |
| Europe EUR | 3.8 % |
| Total % of alternative | 93.2 % |
North America59.2 %
 USA | 48.4 % |
 Canada | 10.9 % |
Key figures
Below are the key figures for the Fund, which will give you a clearer idea of the Fund's management and equity positioning.Exposure Data
Data as of: 30 Aug 2024.Equity Investment Weight78.2 %
Net Equity Exposure93.2 %
Number of Equity Issuers46
Active Share50.0 %
The strategy in a nutshell
Discover the Fund’s main features and benefits through the words of the Fund Managers.Fund Management Team
Fabienne Cretin-Fumeron
Fund Manager
Stéphane Dieudonné
Fund Manager
The advantage of Merger Arbitrage strategy is that it carries virtually no market risk. The only associated risk is that of a deal failure. That is why our approach is very cautious on two levels: we’re very selective in choosing the deals and we aim to maintain a highly diversified portfolio.
Stéphane Dieudonné
Fund Manager
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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.
Market environment
July was marked by a general tightening of Merger Arbitrage spreads, as shown by the HFRX Merger Arbitrage index, which rose by 2.58% over the month (-0.80% since the start of the year).
This tightening was due to the successful conclusion of a number of announced deals, some of them emblematic, such as the $21bn takeover of Westrock by Smurfit, the merger of PGS and TGS in Norway, and the takeover of Equitrans Midstream by EQT.
The takeover of Cerevel by Abbvie was also completed without the FTC seeking to challenge the deal in court.
In all, 23 deals were finalised during the month, with no deal failures to report.
As in the previous month, around thirty new transactions were announced, but the volume was lower, as the transactions announced were smaller in scale.
The biggest deal of the month was the $8bn takeover of Spirit AeroSystems.
Growth in M&A activity continued to be driven mainly by the United States (70% of announced deals), but Europe remained an active region, with 8 deals announced.