In markets generally dominated by just a few major players, it can be tempting to focus solely on the most visible names. Yet, the true value of active management often lies beyond the indices—where the less obvious opportunities can be found.
To uncover these off-the-beaten path ideas, Kristofer Barrett, Fund Manager of Carmignac Investissement, supported by a team of analysts, explores major structural trends and promising market segments by mapping an entire value chain within specific sectors to understand its deeper dynamics and its biggest players: who creates value, who captures it, which players hold genuine pricing power, and how relationships between clients, suppliers, and competitors shape sector profitability. On this basis, the fund manager selects innovative, often niche companies whose current valuations fail to reflect the strength of their fundamentals or their growth potential. Some of these firms may be absent from traditional indices and portfolios, yet play a vital role in keeping ecosystems running smoothly.
Investing across different levels of the same ecosystem helps diversify performance drivers. Behind every global leader stands a network of actors—suppliers, service providers, and niche specialists—whose often understated contribution is essential to the sector’s overall momentum. Today, several value chains coexist within the fund. Alongside a range of technology sub-segments, the portfolio also includes sectors such as aerospace, automotive, and financial infrastructure. Two areas illustrate this approach particularly well: artificial intelligence (AI) data centers and healthcare companies that are relatively immune to fluctuations in drug prices.
Anatomy of an AI data center: mapping the value chain
In the United States, the energy capacity of data centers is expected to quintuple by 2030, reflecting the surging demand for computing power1. This rapid expansion of AI is intensifying pressure on hyperscale data centers, driving substantial infrastructure investments to scale their computing and storage capabilities. While companies such as Nvidia and TSMC are often cited as the cornerstones of this relentless race for computing power, many lesser-known—but equally essential—players are also benefiting from this momentum.
When building a data center, semiconductors account for roughly 50% of capital expenditure, while the remaining 50% is devoted to costs related to storage, energy, and cooling1.
As Jensen Huang, CEO of Nvidia, aptly noted: “electricians and plumbers will be needed by the hundreds of thousands in the new working world thanks to an accelerating boom in data centers”.2
Regardless of the value chain, our investment criteria remain unchanged: profitable growth, solid financial structures often backed by a positive net cash position, and attractive valuations.
A few examples of investments include3:
- Comfort Systems (not part of the reference indicator4) – A company specializing in mechanical, electrical, plumbing, and control systems for buildings. It directly benefits from the rapid expansion in data center construction.
- Asia Vital Components (0.01% of the reference indicator) – A Taiwan-based company focused on thermal management solutions, notably liquid cooling systems, which are essential for high-density AI servers.
Healthcare: spotting the value chain players shielded from political uncertainty
The Healthcare sector has been the laggard of the equity markets over the past few years. Policy noise in the US regarding tariffs has been a major headwind recently, but even before that investors’ focus were drawn elsewhere as areas such as technology raced ahead. We see three key current threats to the healthcare sector: efforts to control drug pricing, tariffs, and possible tax changes. There is little doubt the sector is trading cheaply. The question is where to find good value considering the risks. Investing in healthcare goes far beyond large pharmaceutical companies, which are often in the spotlight of legislative scrutiny. Within this broad ecosystem—where every component of the value chain, from laboratories to distributors and from medical equipment manufacturers to technology service providers, play a decisive role—there are companies that remain largely insulated from the pressures affecting the wider sector.
A few examples of investments include:
- Doximity (not part of the reference indicator) – The leading digital platform dedicated to healthcare professionals in the United States, bringing together over 80% of the country’s doctors. As a true digital infrastructure for the medical sector, it facilitates communication, telemedicine, and the sharing of clinical information. Its business model enables it to deliver profit margins above 40% by 20255.
- Cencora (0.03% of the reference indicator) – One of the largest pharmaceutical distributors in North America, serving both retail pharmacies and hospitals. This defensive company, operating in an inherently defensive sector, derives its growth from the volume of drugs distributed in the United States. The company delivers high returns, with low but stable margins.
Putting ‘off the beaten track’ into action
In Carmignac Investissement, we fully embrace an active and differentiated management approach. We invest in companies that we believe offer sustainable growth potential, strategic positions within their value chains, and attractive valuations.
Here’s how this approach is reflected in our portfolio construction as at the end of October 2025:
- Nearly a quarter of our holdings — 20 companies in total — are not included in the MSCI ACWI index.
- Our active share stands at 79%, underscoring our determination to go beyond market consensus.
When our convictions are strong, we are not afraid to express them through meaningful positions:
- TSMC (9.6%6 vs. 1.2% in the reference indicator) – a key player in advanced semiconductors;
- SK Hynix (3.0% vs. 0.1%) – South Korea’s leading memory chip manufacturer;
- Cencora (2.6% vs. 0.1%) – a US leader in pharmaceutical distribution.
These allocations reflect our philosophy: daring to step off the beaten path to capture growth where it is truly being built.
1Carmignac, 30/10/2025.
2The Free Press Journal: https://www.freepressjournal.in/tech/nvidia-ceo-jensen-huang-warns-gen-z-skip-coding-ai-will-drive-huge-demand-for-plumbers-electricians-carpenters. 03/10/2025.
3Reference to certain securities and financial instruments is for illustrative purposes to. This is not intended to promote direct investment in those instruments, nor does it constitute investment advice. Portfolio allocations may change at any time without notice.
4MSCI AC World Index.
5Sources: Bloomberg, profit Margin Est 2025.
6Positions data valid as at 31st October 2025. Portfolio is subject to change without notice.
I. Off the beaten path approach of 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 | +18,6 | +25,0 | +18,9 | −18,3 | +4,0 | +33,7 | +24,7 | −14,2 | +4,8 | +2,1 |
| Reference Indicator | +8,6 | +25,3 | +18,1 | −13,0 | +27,5 | +6,7 | +28,9 | −4,8 | +8,9 | +11,1 |
| Carmignac Investissement | +19,8 % | +11,5 % | +8,7 % |
| Reference Indicator | +15,5 % | +14,8 % | +10,8 % |
Source: Carmignac at Oct 31, 2025.
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