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Alternative strategies

Carmignac Portfolio Absolute Return Europe

Share Class
F GBP Acc Hdg • LU2923680461
Alternative strategiesCarmignac Portfolio Absolute Return Europe
Alternative strategiesCarmignac Portfolio Absolute Return Europe
Share Class
F GBP Acc Hdg • LU2923680461

Overview

Characteristics & Risks

Performance

Portfolio

ESG

Documents

Performance data not yet available

Due to European regulations, we are not permitted to show the performance of the Funds as it does not have a one year track record yet.

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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:  30 Sep 2025.
The Investment team

Johan Fredriksson

Fund Manager

Dean Smith

Fund Manager

Market Environment

  • September proved to be a resilient month for global equities, which ultimately shook off a volatile start caused by renewed tariff tensions, softer U.S. labour data, and political uncertainty in Europe following the French vote of no confidence.
  • With a relatively quiet corporate calendar, macro data releases and feedback from investor conferences largely dictated market direction.
  • In the United States, equity markets found support from a 25 bps rate cut by the Federal Reserve, which helped offset weaker economic data. Investor sentiment was further lifted by accelerating demand among AI beneficiaries, many of which reported a surge in new orders — reinforcing optimism around the broader AI investment cycle.
  • Across Europe, the macro backdrop remained subdued. September PMIs pointed to stagnating economic activity, with manufacturing returning to contraction, while inflation stayed persistently high. Rising fiscal concerns pushed sovereign bond yields higher, with French yields converging with Italian levels for the first time in years.
  • Corporate commentary suggested limited earnings visibility for the remainder of the year, particularly for industries exposed to U.S. tariffs.
  • Nevertheless, European equity markets defied their typical seasonal weakness, rising 1.5% in September. Cyclical sectors outperformed defensives, while growth stocks led value. The best-performing areas were Basic Resources — supported by firmer industrial metal prices amid renewed hopes of a China recovery — along with Retail, Technology, and Banks. In contrast, Staples and Telecoms underperformed.
  • After a prolonged lull, the European IPO market showed encouraging signs of life. Successful listings from Klarna and Noba Bank, both of which the fund participated in, reflected renewed investor appetite for new issues. A healthy pipeline of IPOs is expected through year-end.

Performance Commentary

  • Positive returns from the long book were offset by losses in short positions and from the index hedging program used for beta management, resulting in a flat overall performance for the month.
  • At the sector level, Technology, Financials, and Consumer Discretionary contributed positively, while Materials, Utilities, and Real Estate detracted.
  • Several of August’s negative trends reversed, notably within Semiconductors, where strong AI-driven order momentum led to a sharp recovery. Financials also rebounded after August’s profit taking.
  • Top Positive Stock Contributors:
  • Prosus (Long) – Continued re-rating supported by strength in its key holding, Tencent.
  • ASM International (Long) – Rising expectations for semiconductor capex linked to AI infrastructure rollouts.
  • SK Hynix (Long) – Significant order flow for high-bandwidth memory products.
  • TSMC (Long) – Positive sentiment following major new order announcements from OpenAI, driving revenue acceleration.
  • Klarna (Long) – Successful IPO of the Swedish consumer credit company.
  • Key Detractors:
  • German Steel (Short) – Losses following reports of a potential disposal of its loss-making carbon steel business.
  • Deutsche Telekom (Long) – Pressure from speculation that Starlink’s spectrum acquisitions could intensify competition for T-Mobile US.
  • Euronext (Long) – Weakness across exchange operators amid concerns over the impact of AI on trading volumes.
  • DSV (Long) – Cautious sentiment around freight volumes due to tariff-related risks.
  • Banca Monte dei Paschi (Long) – Profit taking after a strong run of outperformance.
  • Portfolio Activity:
  • With corporate news flow muted, portfolio activity focused on tactical repositioning to capture opportunities created by sector rotations.
  • Financials: Increased exposure following August’s profit taking, adding Erste Bank and Noba Bank — both offering strong growth potential ahead of Q3 results.
  • Consumer Discretionary: Increased net exposure by reducing short positions and initiating a position in Adidas, where we see scope for a rerating after a prolonged period of underperformance.
  • Interest-Rate Sensitives: Trimmed exposure to Telecoms, Utilities, and Real Estate, which are likely to remain under pressure while 10-year yields stay elevated.

Outlook and Investment Strategy

  • Two themes continue to dominate equity markets:
    1. AI momentum – underpinned by an ongoing wave of partnerships and investment announcements (e.g., OpenAI’s latest collaborations).
    1. Expectations of further Fed easing – with markets increasingly pricing in an additional rate cut before year-end.
  • Attention now turns to the Q3 reporting season, which is often the most influential of the year as investors calibrate full-year earnings expectations.
  • Early sell-side previews are already reshaping sentiment, but with indices trading near highs, actual corporate results will be the key test.
  • Our focus remains on earnings delivery, AI-driven growth trends, and maintaining disciplined exposure to macro-sensitive sectors.
  • While short-term volatility is likely, we believe the portfolio remains well positioned to capture opportunities emerging from ongoing structural themes in technology and financials.

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 5 years, under different scenarios, assuming that you invest 10 000 £.

Performance scenarios

Data as of:  Aug 2025.
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
6080 £
-39.20 %
6790 £
-12.11 %
Unfavourable
What you might get back after costs
Average return each year
9070 £
-9.30 %
9640 £
-1.21 %
Moderate
What you might get back after costs
Average return each year
10580 £
+5.80 %
11400 £
+4.46 %
Favourable
What you might get back after costs
Average return each year
12270 £
+22.70 %
13410 £
+10.27 %
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The unfavourable scenario occurred for an investment between 10/2021 and 10/2024.
The moderate scenario occurred for an investment between 04/2018 and 04/2021.
The favourable scenario occurred for an investment between 02/2016 and 02/2019.
Source: Carmignac at 31 Aug 2025.
View characteristics and risksView portfolio
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.