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Carmignac Investissement: Building resilience for sharp sector rotations

Published on
April 7, 2026
Read time
5 minute(s) read

As concerns around stagflation re-emerge amid rising geopolitical tensions in the Middle East, investors may reasonably question how a global growth equity strategy such as Carmignac Investissement would behave during sharp sector rotations that can be unfavourable to traditional growth funds.

Carmignac Investissement takes a deliberately differentiated approach to global growth investing. Our pursuit of profitable growth is guided by four core disciplines: valuation awareness, flexibility across the growth spectrum, genuine diversification through meaningful exposure to emerging markets, and a willingness to look beyond the index in order to limit momentum bias.

Applied primarily through stock selection, these principles are designed to mitigate the impact of abrupt shifts in market leadership, as illustrated in 2022, when markets rotated sharply away from high-multiple growth stocks, underscoring the value of a disciplined and flexible investment approach.

Kristofer Barrett, Fund Manager: Navigating the 2022 Rotation

During his tenure managing Swedbank Robur Globalfond, Kristofer’s fund ranked in the first quartile of his Morningstar category in 20221, the year of the “great rotation”.

Despite a structural growth bias, he successfully mitigated the impact of the sharp sector rotation, supported by several factors:

  • Resilient stock selection, including underweight positions in Amazon and Meta, while top holdings such as Centene2 and Berkshire Hathaway delivered strong performance.
  • Portfolio valuations broadly in line with the index, combined with an overall higher-quality bias.

Importantly, as is often the case during periods of drawdown, Kristofer used the market correction to reinforce key convictions at attractive valuations, positioning the portfolio for strong performance in 2023.

Valuation consciousness

Valuation is not an afterthought in Carmignac Investissement; it sits at the core of how we assess opportunities.

At the stock level, we focus primarily on EV/FCF (Enterprise Value to Free Cash Flow), which provides a more comprehensive perspective than simple earnings multiples by incorporating balance-sheet structure, financing costs and capital intensity. This reflects our broader philosophy: combining a traditional value discipline with a quality-growth mindset.

At the portfolio level, this discipline translates into balance. We combine businesses with highly visible but more moderate growth trading at attractive valuations, with companies offering stronger growth profiles where higher multiples are justified by innovation and accelerating cash-flow generation. The company IMCD illustrates the first category: a specialty chemicals distributor with resilient, albeit low single-digit growth and an attractive free-cash-flow yield of around 10% next year. Nvidia usually represents the second: one of the fastest-growing companies globally, where the scale of future cash generation. However, today’s valuation with a forward P/E of 19.3x, (compared to 19.0x for S&P 500) is at a 8-year low2.

Beyond valuation discipline, we are also willing to adopt a genuinely contrarian stance when market expectations implied by valuations diverge from our assessment of intrinsic value. Being “on the other side” is not a permanent posture, but a state-dependent response to sentiment-driven mispricings—a useful portfolio construction tool, particularly in environments like today where market regimes are heavily influenced by momentum.

Stock spotlight

Salesforce3 (1.9% of the fund as of 31/03/2026) has been caught in the broader software de-rating, yet its strategic position remains materially stronger than that of many peers with which it has been indiscriminately grouped. In an AI-first enterprise software stack, defensibility increasingly lies with platforms that are deeply embedded, mission-critical and economically relevant to customers. Salesforce remains rare in checking all three boxes. Its dominant CRM footprint represents roughly 40% in core sales and service applications, providing a privileged position from which to monetise the shift toward AI agents, notably through Agentforce. Against that backdrop, its free-cash-flow generation, double-digit growth on a roughly USD 40 billion revenue base and cash generation may suggest that the current valuation is more depressed than warranted.

A structural growth bias with strong flexibility

Carmignac Investissement has a structural growth bias, but our universe extends beyond traditional growth stocks. This flexibility allows us to combine valuation metrics close to the Morningstar Global Equities Blend category with a stronger growth profile than both the Growth and Blend global equity categories as well as the MSCI ACWI.

Stock spotlight

We began building the position in Berkshire Hathaway3 (1.9% of the fund as of 31/03/2026) in January 2026, when markets were still exuberant, as a defensive holding with lower correlation to our tech-heavy portfolio and more attractive prospective returns than cash. Berkshire is not a conventional growth stock, but it is exactly the kind of holding that broadens the opportunity set without diluting the portfolio’s quality bias. It remains a distinctive compounding vehicle, supported by disciplined capital allocation and a diversified base of high-quality businesses. In addition, the improving risk/reward in its insurance and railroad businesses reinforces the case, while the transition from Warren Buffett to Greg Abel now appears far less of an overhang than before.

Benefiting from an emerging markets exposure

Another defining feature of Carmignac Investissement is its emerging markets exposure, which stood at 28% at end of March 2026. In our view, this broadens the opportunity set, reduces concentration in crowded developed-market leaders and provides access to growth drivers shaped by different macro and micro dynamics.

Within emerging markets, our exposure is diversified. Part of it is linked to the AI value chain, often portrayed as a Silicon Valley story but in reality deeply rooted in North Asia’s technological ecosystem.

Stock spotlight

Lotes3 (1.7% of the fund as of 31/03/2026) designs and manufactures high-precision connectors and sockets used in servers and other electronic devices. The key thesis is that it is a quality compounder, driven by product expansion and improving content per device. It is especially well positioned in AMD server CPU sockets, benefiting from AMD’s market share gains versus Intel. Its main edge is its fully in-house equipment design and production, which supports customization, precision, and gross margins above 50%. With a stable c.50% dividend payout, Lotes combines growth, profitability, and disciplined shareholder returns.

Off-benchmark opportunities

Lastly, Carmignac Investissement is a high-conviction portfolio with a strong active share. A meaningful portion of holdings sits outside the mainstream global indices: 25% of the stocks in the portfolio are not in the MSCI AC World.4 This reflects our willingness to search beyond the most crowded parts of the market for differentiated return drivers.

In a market increasingly dominated by mega-caps, less researched and less crowded small and mid caps can offer fertile ground for active management. By focusing on companies with durable competitive advantages and disciplined capital allocation, we aim to build a portfolio that remains both agile and diversified.

Stock spotlight

Sprouts Farmers Market3 (1.0% of the fund as of 31/03/2026) is a differentiated healthy-food retailer with a niche, scalable store growth, rising own-brand economics, and solid cash generation. The key differentiator is its produce-led, curated, attribute-based model rather than broad supermarket scale.

Stock spotlight

Lantheus3 (1.9% of the fund as of 31/03/2026) is a SMID-cap healthcare company with an attractive niche in diagnostics. It has a differentiated and profitable business model, with strong growth driven in particular by Pylarify, its imaging agent for improved detection of prostate cancer. The company is profitable and now holds a net cash position. Lantheus also benefits from a competitive advantage through its radiopharmacy network, delivery capabilities, and fluorine-18 expertise, which strengthen its market position and provide a platform for future portfolio expansion.

Carmignac Investissement’s approach is designed to withstand abrupt shifts in market leadership while maintaining disciplined positioning. We also actively manage portfolio beta through the use of put options, providing an element of downside protection.

Most importantly, performance is often recovered during market rebounds. By leaning against the crowd and maintaining discipline when others sell, we position the portfolio to capture the upside as sentiment and leadership reverse.

1Morningstar Category: EAA Fund Global Large-Cap Growth Equity. Source: Carmignac, Morningstar 2024. Fund: Swedbank Robur Globalfond (ISIN: SE0000542979).
2Reference 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.
3Source: Carmignac, Bloomberg, 31/03/2026.
4The fund is actively managed with no restrictions on how far it can deviate from the reference index.

Carmignac Investissement

Global equities - broad in perspective, selective by conviction
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Carmignac Investissement A EUR Acc

ISIN: FR0010148981
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

Equity: The Fund may be affected by stock price variations, the scale of which is dependent on external factors, stock trading volumes or market capitalization.
Currency: Currency risk is linked to exposure to a currency other than the Fund’s valuation currency, either through direct investment or the use of forward financial instruments.
Discretionary Management: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.
The Fund presents a risk of loss of capital. Please refer to the Fund’s prospectus to view the exhaustive list of risks.

Fees

ISIN: FR0010148981
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

ISIN: FR0010148981
Carmignac Investissement+1,3+17,4+25,0+18,9−18,3+4,0+33,7+24,7−14,2+4,8
Reference Indicator+3,7+7,9+25,3+18,1−13,0+27,5+6,7+28,9−4,8+8,9
Carmignac Investissement+19,4%+7,9%+9,4%
Reference Indicator+16,5%+12,3%+12,0%

Source: Carmignac at Feb 27, 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

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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 risks, fees and ongoing charges are described in the KID (Key Information Document). The KID must be made available to the subscriber prior to subscription. The subscriber must read the KID. Investors may lose some or all their capital, as the capital in the funds are not guaranteed. The Funds present a risk of loss of capital.

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.

The Management Company can cease promotion in your country anytime. Investors have access to a summary of their rights at section 5 entitled "summary of investor rights" on the following links: UK ; Switzerland ; France ; Luxembourg ; Sweden. Belgium (French) ; Belgium (Dutch)

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.