Carmignac Portfolio Asia Discovery
Luxembourg SICAV sub-fundEmerging marketsArticle 8LU0807689582
- Capture the growth potential of Asian markets beyond China, thanks to a rigorous investment process focusing on quality companies, with sustainable profitability.
- Capitalise on the expertise of a seasoned investment team to unlock hidden opportunities through a small and mid-cap bias, a segment often neglected by research analysts and consequently overlooked by investors.
- Gain access to a vast universe and a wide range of investment themes, offering portfolio diversification.
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Article
The strategy in a nutshell
We seek to select the most attractive companies in the universe of emerging small and mid-caps and underexploited frontier markets through a socially responsible investment approach.
Carmignac Portfolio Asia Discovery fund performance
Our monthly comments
Data as of: Jul 31, 2026.Performance commentary
- Against this backdrop, the fund delivered negative performance.
- This decline was primarily attributable to its exposure to South Korean and Taiwanese technology stocks. AI-related companies corrected following their strong performance since the beginning of the year, with the impact amplified by several holdings’ sensitivity to the memory, component and equipment segments.
- In South Korea, SK Hynix was the largest detractor, followed by Samsung Electronics and SK Square. Despite reporting record quarterly results, SK Hynix’s earnings release did not fully meet the market’s elevated expectations, triggering significant profit-taking across the memory and semiconductor value chains. HD Hyundai Electric and LS Electric also declined.
- In Taiwan, the sell-off spread to component and equipment manufacturers, including Yageo, Grand Process Technology, Universal Microwave Technology and Delta Electronics. Yageo’s decline, despite solid results, primarily reflected a broader investor pullback from high-beta technology stocks and valuation compression.
- Conversely, stock selection in India partially offset the decline. Macrotech Developers was the leading contributor, supported by robust results and strong pre-sales. Shaily Engineering Plastics, ICICI Bank, WeWork India and MakeMyTrip also contributed positively, alongside Sea, BizLink and Samsung Biologics.
Outlook strategy
- Following July's correction, we remain constructive on South Korea and Taiwan, while becoming more selective. The pullback has created attractive valuation opportunities, although volatility is likely to remain elevated amid questions over hyperscalers' AI spending, intensifying Chinese competition, and ongoing trade and geopolitical uncertainties.
- Against this backdrop, we entered this period of heightened volatility with a more balanced positioning, having already disciplinedly reduced our overweight exposure to memory names during the second quarter. We took advantage of the correction to selectively add to several high-conviction holdings, including SK Square, Asia Vital Components, Aspeed Technology, Bizlink and Hon Hai Precision. Our AI exposure remains significant but is now more diversified across memory, thermal management, interconnect solutions, server management chips and electronics manufacturing services.
- We also increased our exposure to India, adding to HDFC Bank and ICICI Bank, while initiating a position in Shaily Engineering Plastics, a manufacturer of precision components and drug delivery devices. At the same time, we exited Policybazaar and trimmed Lodha Developers following their strong share price performance.
- We used the market correction to initiate positions in Samsung Biologics, a leading contract biologics manufacturer, and HD Hyundai Electric, a supplier of power grid equipment. We also increased our position in LS Electric to strengthen our exposure to electrical infrastructure, supported by growing demand from data centre expansion.
- Finally, we exited E Ink, Elite Material, HYBE and Silicon2, reallocating capital towards higher-conviction opportunities offering a more attractive balance between growth prospects, valuations and risk.
Performance Overview
Data as of: Sep 1, 2026.Carmignac Portfolio Asia Discovery Portfolio overview
Geographical Breakdown
Data as of: Jul 31, 2026.| Asia | 93.1% |
| Asia-Pacific | 3.9% |
| Eastern Europe | 2.0% |
| Middle East | 1.0% |
| Latin America | - |
Key figures
Exposure Data
Data as of: Jul 31, 2026.Articles that may interest you
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Market environment