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Carmignac Investissement: Letter from the Fund Manager - Q1 2026
During the first quarter of 2026, Carmignac Investissement delivered a performance of -3.90%, underperforming its reference indicator, which posted a loss of -1.32%.3
Market environment
Markets are closing out an undeniably volatile quarter. January was marked by a continuation of the 2025 euphoria, particularly in technology. In February, however, volatility began to build beneath the surface: while headline indices appeared relatively stable, sharp sell-offs emerged in certain parts of the market, with sentiment-driven dislocations affecting stocks perceived as “AI losers,” especially in the software space.
In March, investors were caught off guard by both the scale and duration of the ongoing Middle East conflict, triggering sharp moves across a range of assets. The conflict disrupted some of the market’s most crowded trades, reflecting not only a fundamental deterioration in risk sentiment but also the forced unwinding of leveraged positions. South Korea and gold were among the main casualties.
From a geographical standpoint, Emerging markets have outperformed US and European markets since the beginning of the year. Nevertheless, both EM and Europe lost momentum as geopolitical tensions and energy security concerns weighed on the regional outlook.
Rates also moved sharply higher across both US and European markets.
Overall, the quarter saw markets shift rapidly from a “Goldilocks” scenario to a far more uncertain regime, dominated by stagflation risks and the renewed importance of macroeconomic and geopolitical dynamics.
How did we fare in this context?
The Fund underperformed its reference indicator in the first quarter of 2026. The main source of both absolute and relative weakness came from the healthcare sector. Doximity was negatively affected by the wave of AI-related disruption, as it came to be seen as a potential loser in that environment. Novo Nordisk was also a significant detractor, following a weaker-than-expected 2026 outlook, mounting pricing pressure in the US, and intensifying competition in GLP-1 obesity treatments, all of which led to a de-rating of the stock. We further reduced the size of the position during the period.
Our underweight in energy also weighed on relative performance. In financials, the sector detracted in absolute terms.
Among the largest absolute detractors were several software names, including Atlassian, Salesforce, Microsoft and ServiceNow. These positions had been built earlier in the year on the contrarian view that the disruption wave would remain limited for some of the well-established players. We reduced some of these positions during the relative rebound in March, as scepticism toward the segment may persist until markets gain better visibility on the true scale and timing of any disruption.
The main contributors over the period came from semiconductors, with holdings such as TSMC, SK Hynix and Lotes posting strong gains.
Outlook
Looking ahead, uncertainty is likely to remain elevated, with market dispersion staying high as long as the conflict in the Middle East persists. The key variable will be its duration: a prolonged conflict would increase the likelihood of lasting damage, raising the risk that today’s disruptions evolve into more severe and potentially irreversible economic and market consequences. At this stage, markets appear to be pricing in an inflation shock, but not yet a meaningful growth shock.
In this environment, any sharp dislocations—whether triggered by geopolitical developments or abrupt swings in market sentiment—are likely to be viewed as opportunities to build positions at attractive valuations. In many cases, such episodes are driven more by short-term uncertainty than by any material deterioration in underlying fundamentals.
Our main performance drivers remain the following.
In technology, the recent correction has been significant. Tech stocks have fallen sharply, erasing most of the Nasdaq 100’s valuation premium relative to the broader market, as investors question the returns that will ultimately be generated by AI-related capital expenditure. While this pullback may be creating opportunities, the sector is no longer moving as a single block, making stock selection more important than broad-based exposure.
Within technology, semiconductors remain our biggest exposure, as demand and pricing power continue to provide support. That said, valuations already reflect much of this strength, which calls for a more selective approach. We have added some Japanese upstream actors to diversify our semi exposure (Nitto Boseki, Ibiden, Disco).
Among hyperscalers, uncertainty around the return on AI capex continues to fuel volatility. Against this backdrop, we have reduced our exposure to Microsoft in favor of Alphabet and Amazon. We believe Alphabet is relatively better positioned in the current environment, while Amazon should benefit from an acceleration in growth as capital expenditure progressively catches up with demand.
In software, skepticism toward the segment may persist until the market gains greater visibility on the scale and timing of any disruption linked to AI. In this context, we are maintaining selective exposure to the most resilient players, supported by historically attractive valuations, such as Salesforce.
In financials, we have reinforced exposure to companies perceived as potential casualties of AI, such as S&P Global and Tradeweb, which we believe could prove significantly more resilient than current valuations imply. We also added Berkshire Hathaway in January 2026 as a defensive holding, given its lower correlation to our tech-heavy portfolio and its more attractive prospective returns relative to cash. Berkshire remains a distinctive compounding vehicle, supported by disciplined capital allocation and a diversified base of high-quality businesses. In addition, the improving risk/reward profile in its insurance and railroad operations strengthens the case, while the transition from Warren Buffett to Greg Abel now appears far less of an overhang than previously feared.
Within industrials, our exposure remains centered on two core themes: electrification and aerospace. We used the March correction to reinforce or initiate positions in selected names on weakness, including Schneider Electric and Parker Hannifin.
Finally, in healthcare, we maintain exposure to a number of biotech companies that are self-funded, already commercialized, and supported by robust therapeutic pipelines. At the more defensive end of the spectrum, U.S. drug distributors remain our largest positions in the sector.
1A EUR Acc share class.
2Global Large-Cap Growth Equity.
3MSCI AC World NR index.
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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 | 4.8 | -14.2 | 24.7 | 33.7 | 4.0 | -18.3 | 18.9 | 25.0 | 17.4 | -3.9 |
| Reference Indicator | 8.9 | -4.8 | 28.9 | 6.7 | 27.5 | -13.0 | 18.1 | 25.3 | 7.9 | -1.3 |
| Carmignac Investissement | + 16.6 % | + 6.5 % | + 8.8 % |
| Reference Indicator | + 14.3 % | + 9.9 % | + 11.2 % |
Source: Carmignac at Mar 31, 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.
Reference Indicator: MSCI AC World NR index
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.
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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.