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Alternative strategies

Carmignac Portfolio Absolute Return Europe

Share Class

LU2923680206

Alternative strategiesCarmignac Portfolio Absolute Return Europe
Alternative strategiesCarmignac Portfolio Absolute Return Europe
Share Class

LU2923680206

Overview

Characteristics & Risks

Performance

Portfolio

ESG

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Comments from the Investment Team

Read the Investment team's analysis below.

Carmignac Portfolio Absolute Return Europe Monthly comments

Data as of:  May 29, 2026.
The Investment team

Johan FREDRIKSSON

Fund Manager

Market Environment

  • European equities continued their recovery in May, with the STOXX Europe 600 Index advancing more than 2% during the month.
  • Investor sentiment improved as concerns around global growth and trade tensions eased, while first-quarter earnings generally proved more resilient than expected.
  • Markets were supported by moderating inflation trends and increasing confidence that central banks remain on a path towards monetary easing later in the year.
  • Market leadership remained relatively narrow, with investors continuing to favour companies exposed to structural growth themes such as artificial intelligence, electrification, and digital infrastructure.
  • Technology was again among the strongest performing sectors, supported by robust demand across the semiconductor value chain and continued evidence of elevated AI-related capital expenditure.
  • Financials also performed well, benefiting from resilient earnings and a stable interest rate backdrop.
  • Defensive sectors delivered mixed performance, except for utilities which continued to attract investor interest given their exposure to power demand growth and grid investment requirements.
  • Healthcare on the other hand lagged as investors rotated towards more cyclical areas of the market. Consumer-related sectors were also weaker as concerns persisted around demand trends and volume growth across several end markets.

Performance Commentary

  • The fund generated a positive return during the month.
  • Performance was driven primarily by our long positions but was partially offset by index hedging positions which reflected the constructive market backdrop during the month.
  • Technology was the largest contributor to performance driven by continued strength across semiconductor holdings.
  • Other contributors were Financials, supported by resilient earnings and positive sentiment towards the sector while Utilities benefited from ongoing investor focus on electrification and power infrastructure themes.
  • The principal detractors at a sector level were Healthcare and Consumer-related holdings where stock-specific weakness outweighed broader market strength.
  • Key stock selection winners included long positions in PPC (as market is reassessing its new growth plan), SK Hynix (continued benefitting from accelerating demand for high-bandwidth memory products) and ASML (benefited from positive sentiment towards semiconductor equipment).
  • Detractors included our longs in Fresenius and Alcon who suffered from overall sector weakness and a short position in an Energy company.

Outlook and Investment Strategy

  • Equity markets enter June with a broadly positive backdrop, supported by resilient corporate earnings & continued investment in artificial intelligence.
  • While the US market remains the primary driver of global returns, earnings growth is starting to broaden beyond the largest technology companies.
  • With European equities having lagged, they now look relatively attractive, but still vulnerable to Iran newsflow.
  • At the same time, with the Q2 reporting season now behind us, focus shifts even more to macro, politics, and the upcoming large US tech IPOs (SpaceX), which is likely to add volatility.
  • Also, with valuations in parts of the US market being elevated, it leaves less room for disappointment, particularly in the Middle East and another push higher of energy prices.
  • Overall, the medium-term outlook remains constructive, but near-term gains are likely to be accompanied by periodic pullbacks as markets balance strong fundamentals against increasing macroeconomic and geopolitical risks.

Performance scenarios

The figures shown include all the costs of the product itself, but may not include all the costs that you pay to your advisor or distributor. The figures do not take into account your personal tax situation, which may also affect how much you get back. What you will get from this product depends on future market performance. Market developments in the future are uncertain and cannot be accurately predicted. The unfavourable, moderate, and favourable scenarios shown are illustrations using the worst, average, and best performance of the product over the last 10 years. Markets could develop very differently in the future. This table shows the money you could get back over the next 3 years, under different scenarios, assuming that you invest 10 000 €.

Performance scenarios

Data as of:  May 2026.
Scenarios
If you exit after 1 year
If you exit after 3 years
Stress
What you might get back after costs
Average return each year
5 870 €
−41,28 %
6 500 €
−13,37 %
Unfavourable
What you might get back after costs
Average return each year
8 650 €
−13,46 %
9 030 €
−3,34 %
Moderate
What you might get back after costs
Average return each year
9 930 €
−0,70 %
10 530 €
+1,75 %
Favourable
What you might get back after costs
Average return each year
11 710 €
+17,11 %
12 270 €
+7,06 %
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The unfavourable scenario occurred for an investment between 01/2025 and 05/2026.
The moderate scenario occurred for an investment between 03/2018 and 03/2021.
The favourable scenario occurred for an investment between 05/2016 and 05/2019.
Source: Carmignac at May 31, 2026.

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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.
Carmignac Portfolio is a sub-fund of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive.
The information presented above is not contractually binding and does not constitute investment advice. Past performance is not a reliable indicator of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor), where applicable. Investors may lose some or all of their capital, as the capital in the UCI is not guaranteed. Access to the products and services presented herein may be restricted for some individuals or countries. Taxation depends on the situation of the individual. The risks, fees and recommended investment period for the UCI presented are detailed in the KIDs (key information documents) and prospectuses available on this website. The KID must be made available to the subscriber prior to purchase.). The reference to a ranking or prize, is no guarantee of the future results of the UCITS or the manager.