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Alternative strategies

Carmignac Portfolio Absolute Return Europe

Share Class

LU2923680388

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

LU2923680388

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:  Jan 30, 2026.
The Investment team

Johan FREDRIKSSON

Fund Manager

Dean SMITH

Fund Manager

Market Environment

  • Equity markets performed strongly in January despite a significant increase in geopolitical risk related to Venezuela, Iran and Greenland.
  • European equity markets extended their rally for a seventh consecutive month, largely ignoring heightened geopolitical tensions. Performance was supported by favourable macroeconomic data, with both inflation and euro-area growth surprising to the upside.
  • Low headline volatility at the index level masked pronounced dispersion beneath the surface.
  • Companies with strong order visibility linked to AI-related capital expenditure outperformed, while sectors perceived to be structurally challenged by AI, notably software and other knowledge-based businesses such as RELX, experienced significant selling pressure.
  • Market breadth improved compared with last year’s narrow leadership.
  • Rotation was evident, with value outperforming growth, while quality continued to underperform.
  • At the sector level, the strongest performers in Europe were Basic Resources (supported by higher commodity prices), Energy, Utilities, Industrials and Banks. Consumer-related sectors, Media, Insurance and Autos lagged.

Performance Commentary

  • The Fund produced a positive return in January.
  • The largest positive contributions came from Technology, reflecting exposure to the AI investment cycle, as well as Banks, Industrials, Communication Services and Materials.
  • The main detractors were Healthcare, Consumer Discretionary and Consumer Staples.
  • Key stock selection winners included long positions in SK Hynix (earnings expectations benefited from higher memory prices), ASM International (strong order intake for semiconductor capital equipment), and Piraeus Bank (stronger lending growth drove earnings upgrades).
  • Detractors included our long in Prosus (concerns that potential M&A activity could reduce the scale of share buybacks) as well as our short positions in a logistics company and a Swiss capital‑goods company.

Outlook and Investment Strategy

  • With increased volatility at the single-stock level, we used market strength to selectively take profits in Financials, Industrials and Materials, while adding to preferred holdings on weakness.
  • New positions initiated during the month included Schneider, re-entered following a period of underperformance after having been exited last year, and PPC, a Greek utility offering highly visible earnings growth over the next five years.
  • Elsewhere, profits were taken in Allfunds following confirmation of the Deutsche Börse takeover bid, and exposure was tactically reduced to stocks perceived to be at risk from AI disruption.
  • In February, the focus will remain on the FY25 reporting season. Momentum driven sell offs represent a rising risk. Although often short lived, these episodes can trigger sharp, indiscriminate declines below index levels.
  • The principal risk remains a market reassessment of AI related disruption, particularly for software and data driven business models.
  • On the long side, our focus and risk exposure remain in banks, financials, and key industrials including A&D. We recently re established long positions in both Safran and Airbus.
  • The short book continues to target disruptive AI victims and weak consumer related names, including Autos and Luxury.
  • We are also closely monitoring commodity chemical names, which have moved higher recently on rotational flows, but where we see significant earnings risk.

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:  Dec 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
6044 €
-39.56 %
6758 €
-12.25 %
Unfavourable
What you might get back after costs
Average return each year
9078 €
-9.22 %
9668 €
-1.12 %
Moderate
What you might get back after costs
Average return each year
10572 €
+5.72 %
11286 €
+4.11 %
Favourable
What you might get back after costs
Average return each year
12284 €
+22.84 %
13450 €
+10.38 %
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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 03/2020 and 03/2023.
The favourable scenario occurred for an investment between 02/2016 and 02/2019.
Source: Carmignac at Dec 31, 2025.

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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.