Alternative strategies

Carmignac Absolute Return Europe

European 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%).
  • Strong discipline of portfolio risk management to contain the downside.
Key documents
Risk Indicator

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Lowest risk Highest risk
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 126.7 %
+ 38.3 %
+ 10.4 %
- 4.4 %
- 2.7 %
From 02/01/2003
To 25/09/2025
Calendar Year Performance 2024
- 8.0 %
+ 8.9 %
+ 14.6 %
+ 4.4 %
- 1.3 %
+ 5.2 %
+ 12.6 %
- 6.4 %
0.0 %
+ 3.6 %
Net Asset Value
409.57 €
Asset Under Management
158 M €
Net Equity Exposure29/08/2025
22.7 %
SFDR - Fund Classification

Article

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Data as of:  25 Sep 2025.

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:  29 Aug 2025.
Fund management team

Johan Fredriksson

Fund Manager

Dean Smith

Fund Manager

Market environment

  • August was marked by macroeconomic developments rather than company-specific news.

  • The month began with a risk-off sell-off triggered by the August tariff deadline, followed by weaker U.S. jobs data that raised concerns about a slowdown.

  • Fed Chair Powell’s dovish remarks boosted expectations for September rate cuts, helping equity markets recover. European equities ended the month up +0.74%.

  • Sector rotation was a key theme, with investors taking profits from year-to-date winners and shifting into laggards, despite limited fundamental improvement.

  • In Europe, top-performing sectors included Auto Manufacturers & Component Suppliers, Basic Resources, Food & Beverage, and Healthcare. Technology, Media, Construction, Utilities, and Real Estate underperformed.

Performance commentary

  • The sharp rotation out of year-to-date winners into laggards despite limited earnings improvement posed challenges for our fundamentally driven portfolio, resulting in a negative return.

  • At the sector level, positive contributions came from stock selection in Healthcare, Materials, and Communications, while Technology, Industrials, and Consumer Discretionary detracted.

  • Within Technology, profit-taking in semiconductors reflected concerns about the sustainability of second-half growth.

  • Financials, which had been strong contributors earlier in the year, were relatively muted in terms of alpha generation during August.

  • Key stock selection winners included long positions in Fresenius (strong Q2 results), Prosus (supported by Tencent), and Prysmian (benefiting from demand for high-voltage cables).

  • Detractors included SAP, which declined on concerns about AI’s impact on software models, and Relx, which fell due to fears of AI disrupting data-driven businesses.

Outlook strategy

  • Market activity in August was largely driven by Q2 earnings releases, with lower liquidity amplifying share price moves.

  • Looking ahead, September is expected to be shaped by central bank decisions, particularly the Fed’s rate call with macro factors likely to remain dominant.

  • In Europe, attention will center on the fallout from the French political situation and its impact on long-term yields.

  • In the UK, markets will be watching government proposals ahead of the Autumn budget.

  • Given this backdrop, we plan to remain cautious on risk, using hedging tools such as futures and options to help manage potential volatility.

Performance Overview

Data as of:  25 Sep 2025.
Source: Carmignac at 27/09/2025

Carmignac Absolute Return Europe Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  29 Aug 2025.
Europe EUR24.5 %
Europe ex-EUR12.3 %
Others6.6 %
North America5.8 %
Index Derivatives-26.4 %
View details

Key figures

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

Exposure Data

Data as of:  29 Aug 2025.
Net Equity Exposure22.7 %
Issuer equity derivative short42
Issuer equity derivative long67

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

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