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Carmignac Investissement: Letter from the Fund Manager - Q2 2025
During the second quarter of 2025, Carmignac Investissement delivered a robust return of +11.68%, significantly outperforming its reference indicator, which posted a gain of just +2.63%. Year-to-date, the Fund has achieved a positive performance of +3.10%, in contrast to a -2.92% decline recorded by its reference indicator.
Market environment
The second quarter was characterized by heightened volatility, with a sharp drawdown, a swift rebound, and record-setting highs.
Markets opened the quarter under pressure after the announcement on April 2 by President Trump regarding broad tariffs. The move triggered a sharp selloff, pushing U.S. equities into bear market territory, with declines exceeding 19% from February peaks. However, sentiment quickly reversed when the administration paused the tariffs for 90 days on April 9, sparking a dramatic V-shaped recovery.
By the end of June, both the S&P 500 and Nasdaq 100 had not only recouped losses but reached new all-time highs. The rally was driven primarily by large-cap technology and AI-related stocks, with Nvidia, Microsoft, and Broadcom emerging as key performance leaders.
Outside the U.S., European and Emerging Markets delivered returns broadly in line with U.S. equities (in euro terms). In Europe, declining inflation, improving macroeconomic conditions and the announcement of a German fiscal stimulus package supported equity performance. Emerging Markets benefited from a weakening dollar and renewed investor interest. Notably, Taiwan and South Korea posted strong gains, buoyed by their semiconductor sector exposure and, in Korea's case, post-election optimism.
How did we fare in this context?
During the quarter, the Fund outperformed its reference indicator, driven primarily by strong stock selection, especially in the Technology sector, and to a lesser extent in Industrials. During the sharp market downturn in April, the Fund benefited significantly from put options on indices and individual stocks. These hedging instruments are implemented at low cost as a strategic safeguard against extreme market events, like those witnessed in April.
In the Technology sector, reinforcing certain high-conviction positions in April further boosted the Fund’s rebound. Notable contributors included Nvidia, Celestica, and ServiceNow. Additionally, our diversified exposure across the Asian technology value chain (TSMC, Elite Material, SK Hynix) provided further support to performance during the recovery phase.
Within Industrials, performance was bolstered by our recently initiated positions in companies involved in data center electrification and cooling systems—added during market weakness following DeepSeek’s developments in January. This segment, which represents over 50% of a data center’s capital expenditures (excluding IT equipment), presents a compelling long-term opportunity and has already contributed positively.
Conversely, the Healthcare sector was the main area of disappointment. Beyond the sector’s overall underperformance, our stock selection weighted on the performance, with names such as Centene and Thermo Fisher lagging significantly. However, some key convictions outperformed like McKesson and Cencora.
Outlook
Trump’s mandate introduced uncertainty and volatility while fiscal discipline under a Republican leadership looks unlikely. In this environment, we favor equities with strong pricing power and robust balance sheets—companies that can absorb inflationary pressures and perform even if interest rates stay elevated. Meanwhile, technological innovation continues to advance, largely independent of political shifts.
In Europe, a growing awareness of strategic vulnerabilities is driving the first steps toward greater autonomy and resilience. Our European exposure is focused on industrial companies benefiting from three long-term trends: electrification trend (Prysmian, Schneider Electric); aerospace (Safran, Airbus, BAE Systems); reindustrialization in Europe (Siemens). We remain highly selective, targeting only high-quality businesses trading at attractive valuations.
The sharp market drawdown allowed us to increase our small and mid-cap (SMID) exposure to 8.3% of the fund. This includes niche players in structurally growing value chains (e.g., Lotes, a Taiwanese semiconductor supplier), companies with low, stable growth and low valuations (e.g., Molson Coors, a beverage company), and those at a growth inflection point with still-attractive valuations (e.g., Innodisk).
We have taken profits on both tech and non-tech names that delivered strong performance over the quarter. At the same time, we are initiating positions in laggards where fundamentals are improving but not yet priced in by the market. AirBnB is one such example: we expect a return to double-digit growth, which is not reflected in consensus forecasts. The company’s structural advantages over OTAs—especially its defensible two-sided network—remain intact, even in the face of AI disruption or search-based competition, while regulatory headwinds appear to have eased.
In a market environment influenced by political rhetoric, our strategy focuses on recognizing the long-term potential of equities. This involves identifying growth companies that are less dependent on the economic cycle across the US, Europe, and EM; and stocks already reflecting a high level of uncertainty in their valuations compared to the robustness of the fundamentals.
Carmignac Investissement A EUR Acc
- Recommended minimum investment horizon
- 5 years
- Risk indicator*
- 4/7
- SFDR - Fund Classification**
- Article 8
*Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time. **The Sustainable Finance Disclosure Regulation (SFDR) 2019/2088 is a European regulation that requires asset managers to classify their funds as either 'Article 8' funds, which promote environmental and social characteristics, 'Article 9' funds, which make sustainable investments with measurable objectives, or 'Article 6' funds, which do not necessarily have a sustainability objective. For more information please refer to https://eur-lex.europa.eu/eli/reg/2019/2088/oj.
Main risks of the fund
Fees
- Entry costs
- 4,00% of the amount you pay in when entering this investment. This is the most you will be charged. Carmignac Gestion doesn't charge any entry fee. The person selling you the product will inform you of the actual charge.
- Exit costs
- We do not charge an exit fee for this product.
- Management fees and other administrative or operating costs
- 1,50% of the value of your investment per year. This estimate is based on actual costs over the past year.
- Performance fees
- 20,00% max. of the outperformance once performance since the start of the year exceeds that of the reference indicator and if no past underperformance still needs to be offset. The actual amount will vary depending on how well your investment performs. The aggregated cost estimation above includes the average over the last 5 years, or since the product creation if it is less than 5 years.
- Transaction Cost
- 1,30% of the value of your investment per year. This is an estimate of the costs incurred when we buy and sell the investments underlying the product. The actual amount varies depending on the quantity we buy and sell.
Performance
| Carmignac Investissement | 2.1 | 4.8 | -14.2 | 24.7 | 33.7 | 4.0 | -18.3 | 18.9 | 25.0 | 3.1 |
| Reference Indicator | 11.1 | 8.9 | -4.8 | 28.9 | 6.7 | 27.5 | -13.0 | 18.1 | 25.3 | -2.9 |
| Carmignac Investissement | + 15.6 % | + 10.0 % | + 6.0 % |
| Reference Indicator | + 12.9 % | + 12.6 % | + 9.4 % |
Source: Carmignac at 30 Jun 2025.
Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor).
Reference Indicator: MSCI AC World NR index
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Marketing communication. Please refer to the KID/KIID, prospectus of the fund before making any final investment decisions. This document is intended for professional clients.
This material may not be reproduced, in whole or in part, without prior authorisation from the Management Company. This material does not constitute a subscription offer, nor does it constitute investment advice. This material is not intended to provide, and should not be relied on for, accounting, legal or tax advice. This material has been provided to you for informational purposes only and may not be relied upon by you in evaluating the merits of investing in any securities or interests referred to herein or for any other purposes. The information contained in this material may be partial information and may be modified without prior notice. They are expressed as of the date of writing and are derived from proprietary and non-proprietary sources deemed by Carmignac to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Carmignac, its officers, employees or agents.
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.
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.
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The Funds’ prospectus, KIDs, NAVs and annual reports are available at www.carmignac.com/en, or upon request to the Management Carmignac Portfolio refers to the sub-funds of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive. The French investment funds (fonds communs de placement or FCP) are common funds in contractual form conforming to the UCITS or AIFM Directive under French law.
In the United Kingdom: the Funds’ respective prospectuses, KIIDs and annual reports are available at www.carmignac.com/en-gb, or upon request to the Management Company, or for the French Funds, at the offices of the acilities Agent, Carmignac UK Ltd, 2 Carlton House Terrace, London, SW1Y 5AF. This document was prepared by Carmignac Gestion, Carmignac Gestion Luxembourg or Carmignac UK Ltd. FP Carmignac ICVC (the “Company”) is an Investment Company with variable capital incorporated in England and Wales under registered number 839620 and is authorised by the FCA with effect from 4 April 2019 and launched on 15 May 2019. FundRock Partners Limited is the Authorised Corporate Director (the “ACD”) of the Company and is authorised and regulated by the FCA. Registered Office: Hamilton Centre, Rodney Way, Chelmsford, Essex, CM1 3BY, UK; Registered in England and Wales with number 4162989. Carmignac Gestion Luxembourg SA has been appointed as the Investment Manager and distributor in respect of the Company. Carmignac UK Ltd (Registered in England and Wales with number 14162894) has been appointed as a sub-Investment Manager of the Company and is authorised and regulated by the Financial Conduct Authority with FRN:984288.
In Switzerland: the prospectus, KIDs and annual report are available at www.carmignac.com/en-ch, or through our representative in Switzerland, CACEIS (Switzerland), S.A., Route de Signy 35, CH-1260 Nyon. The paying agent is CACEIS Bank, Montrouge, Nyon Branch / Switzerland, Route de Signy 35, 1260 Nyon.
The Management Company can cease promotion in your country anytime. Investors have access to a summary of their rights in English on the following links: UK ; Switzerland ; France ; Luxembourg ; Sweden.
For Carmignac Portfolio Long-Short European Equities: 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.
Carmignac Private Evergreen refers to the Private Evergreen sub-fund of the SICAV Carmignac S.A. SICAV – PART II UCI, registered with the Luxembourg RCS under number B285278.