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Carmignac Investissement: Letter from the Fund Manager - Q3 2026
Over the third quarter, the Fund gained +4.8%, compared with +2.3% for its reference indicator, bringing year-to-date performance to +19.0%, versus +16.9% for the reference indicator.
Market environment
Global equity and sovereign bond markets moved in opposite directions during the third quarter of 2026. While equities proved resilient and globally delivered positive returns, government bond markets came under significant pressure as persistent inflation, elevated public debt levels and stronger-than-expected economic activity pushed yields sharply higher. Equity markets, by contrast, continued to benefit from resilient corporate earnings, with profit expectations revised higher in both the US and emerging markets, particularly within technology. In several markets, earnings growth actually outpaced share-price appreciation, allowing valuations to compress despite positive equity returns.
Artificial intelligence (AI) remained the dominant theme, although leadership changed significantly during the quarter. July saw a correction in semiconductors and Asian AI hardware following their exceptional performance in the first half of the year. As the quarter progressed, market leadership broadened towards hyperscalers and software companies.
More broadly, style leadership remained unstable, rotating repeatedly between high-growth technology stocks and more defensive or value-oriented segments. This created a less directional market environment than in the first half of the year.
Geopolitical tensions also returned to the forefront through energy markets. Renewed instability in the Middle East pushed Brent crude back above $100 per barrel, adding to inflation concerns. The broader macroeconomic backdrop nevertheless remained resilient. US growth continued to be supported by strong business investment, notably AI-related capital expenditure, while September business surveys pointed to improving activity in both the US and the euro area.
How did we fare in this context?
Over the third quarter, the Fund gained +4.8% during the quarter, compared with +2.3% for its reference indicator, bringing year-to-date performance to +19.0%, versus +16.9% for the reference indicator.
Portfolio adjustments made ahead of the summer contributed positively. Following the exceptional first-half rally in semiconductors, we took profits in several higher-beta hardware names while maintaining exposure to higher-quality, relatively lower-beta tech companies such as Nvidia. We also used periods of weakness to increase exposure outside hardware. These changes proved beneficial as leadership was unstable during the quarter.
Behind the fund’s quarterly performance, the technology sector remained the main drivers with Atlassian and Nvidia among the strongest contributors to both absolute and relative performance. Asia Vital Components also contributed positively, reflecting continued demand for advanced cooling solutions across the AI infrastructure value chain.
Beyond technology, our portfolio of defensive healthcare and financial stocks played its role effectively during the market volatility in July. Our positions in Cencora, McKesson and Intercontinental Exchange contributed positively to performance, after which we took some profits.
The main relative detractor was our underweight exposure to hyperscalers, which benefited from the rotation in market leadership during the quarter. Some hardware positions also weighed on performance, notably Nitto Boseki and Lotes. Although we had reduced our exposure to these companies ahead of the summer, the remaining positions were still affected by the correction in some of the strongest-performing areas of the AI supply chain.
Outlook
One of the defining features of the current market is its extreme concentration. A small group of mega-cap growth stocks now accounts for a disproportionate share of both index returns and market beta, while correlations across the broader equity universe have fallen and performance dispersion has increased.
This creates an unusual market structure: narrow at the index level, but much more fragmented beneath the surface. As a result, a growing share of the benchmark’s sensitivity is concentrated in a limited number of high-beta stocks, creating a “beta deficit” across the rest of the market. When these leaders outperform, the broader equity universe can struggle to keep pace with the index even when underlying fundamentals remain solid.
Facing this unusual market set-up, we have gradually built a more barbell-shaped portfolio over recent weeks. On one side, we maintain exposure to the AI leaders. On the other, we have increased exposure to companies perceived as AI losers, or simply less dependent on the AI cycle, where valuations and expectations are often more attractive. This allows us to retain meaningful participation in our strongest structural conviction while building greater diversification across different sources of return.
On the AI winners side, we continue to favour the hardware segment, where demand visibility remains strong and bottlenecks across the value chain continue to support pricing power and earnings growth. Our focus is increasingly on quality leaders with strong cash-flow generation and differentiated competitive advantages, rather than simply the highest-beta beneficiaries of the cycle.
This includes core positions such as Nvidia and Broadcom, as well as more specialised enablers across memory, components and infrastructure, including SK Hynix, Asia Vital Components and Amphenol. We took advantage of the market pullback at the beginning of the quarter to add to several of these positions at more attractive valuations. Conversely, we remain more cautious on hyperscalers, where unprecedented capex requirements create greater uncertainty around future returns. This is compounded by their growing dependence on frontier AI companies continuing to expand compute demand at an exceptional pace, adding another layer of uncertainty around the sustainability of the investment cycle. We have therefore significantly reduced our exposure, exiting Microsoft and Meta, and trimming positions in Alphabet and Amazon.
On the other side of the barbell, we continue to diversify towards financials, healthcare and industrials, focusing on specific pockets of opportunity rather than broad sector calls.
In financials, we favour payment and market-infrastructure businesses such as Mastercard, Adyen, S&P Global and Tradeweb, complemented by Berkshire Hathaway and selected emerging-market banks to provide additional diversification.
In healthcare, we continue to favour pharmaceutical distributors such as McKesson and Cencora, alongside selected undervalued biotech companies. In industrials, we have increased exposure to attractively valued, more cyclical businesses such as Ingersoll Rand, Epiroc and IDEX, where expectations already reflect a relatively subdued operating environment.
1A EUR Acc.
2MSCI World ACWI.
3Global Large-Cap Growth Equity.
Carmignac Investissement
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. **Sustainable Finance Disclosure Regulation (SFDR) 2019/2088. The SFDR classification of the Funds may change over time.
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
- 1,80 % 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
- 0,35 % 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 | +19,0 | +17,4 | +25,0 | +18,9 | −18,3 | +4,0 | +33,7 | +24,7 | −14,2 | +4,8 |
| Reference Indicator | +16,9 | +7,9 | +25,3 | +18,1 | −13,0 | +27,5 | +6,7 | +28,9 | −4,8 | +8,9 |
| Carmignac Investissement | +23,5 % | +10,5 % | +10,4 % |
| Reference Indicator | +18,9 % | +12,0 % | +12,3 % |
Source: Carmignac at Sep 30, 2026.
Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). The Fund presents a risk of loss of capital.
The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.
Reference Indicator: MSCI AC World NR index
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.
In Belgium: This document is intended for professional clients. This content has not been validated by FSMA. The decision to invest in the promoted fund should take into account all its characteristics or objectives as described in its prospectus. This communication is published by Carmignac Gestion S.A., a portfolio management company approved by the Autorité des Marchés Financiers (AMF) in France, and its Luxembourg subsidiary Carmignac Gestion Luxembourg, S.A., an investment fund management company approved by the Commission de Surveillance du Secteur Financier (CSSF). “Carmignac” is a registered trademark. “Investing in your Interest” is a slogan associated with the Carmignac trademark. This document does not constitute advice on any investment or arbitrage of transferable securities or any other asset management or investment product or service. The information and opinions contained in this document do not take into account investors’ specific individual circumstances and must never be interpreted as legal, tax or investment advice. The information contained in this document may be partial and could be changed without notice. This document may not be reproduced in whole or in part without prior authorisation. The risks and fees are described in the KID (Key Information Document). The prospectus, KID, the net asset-values and the latest (semi-) annual management report may be obtained, free of charge, in French or in Dutch, from the management company (tel. +352 46 70 60 1) or by consulting its website or www.fundinfo.com. These materials may also be obtained from Caceis Belgium S.A., the financial service provider in Belgium, at the following address: avenue du port, 86c b320, B-1000 Brussels. The Fund (fonds commun de placement or FCP) is a common fund in contractual form conforming to the UCITS Directive under French law. Access to the Fund may be subject to restrictions regarding certain persons or countries. The Funds are not registered for retail distribution in Asia, in Japan, in North America, nor are they registered in South America. Carmignac Funds are registered in Singapore as restricted foreign scheme (for professional clients only). The Funds have not been registered under the US Securities Act of 1933. The Funds may not be offered or sold, directly or indirectly, for the benefit or on behalf of a «U.S. person», according to the definition of the US Regulation S and FATCA. In case of subscription to a fund subject to Article 19bis of the Belgian Income Tax Code (CIR92), the investor will have to pay, upon redemption of his or her shares, a withholding tax of 30% on the income (in the form of interest, or capital gains or losses) derived from the return on assets invested in debt claims. Distributions are subject to withholding tax of 30% without income distinction. In case of subscription in a French investment fund (fonds commun de placement or FCP), you must declare on tax form, each year, the share of the dividends (and interest, if applicable) received by the Fund. Any complaint may be referred to complaints@carmignac.com or CARMIGNAC GESTION - Compliance and Internal Controls - 24 place Vendôme Paris France or on the website www.ombudsfin.be.
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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.