Carmignac Portfolio Long-Short European Equities

• May 2025 saw a robust rebound in U.S. equities, with all major indices posting their strongest monthly gains since late 2023. • This surge followed a period of extreme volatility in April, which had been triggered by the announcement and partial implementation of sweeping new tariffs by the Trump administration. • May’s rally was fueled by easing U.S.-China trade tensions, with both countries agreeing to reduce some tariffs, and by the EU agreeing to fast-track trade talks with the U.S. These developments alleviated fears of a prolonged trade war and boosted investor confidence. • Significant risks remain, including unresolved tariffs, economic slowdown fears and fiscal challenges.

• In May the fund posted a positive performance, driven by our Long book.• Our Core Longs drove our performance on the Long side, thanks to a strong set of Q1 earnings and the market rebound. In the semiconductor space, ASM International and BE Semiconductor had a strong contribution to our returns, while on the Luxury side both Prada and Richemont performed well. • Our Trading Longs had a positive contribution to our performance, driven by Fresenius and Prosus, which have been strong convictions since the beginning of the year. • On the Short side, our Alpha Shorts suffered from the overall market rally, rather than an idiosyncratic event.

• The net exposure of the strategy stayed stable throughout the month in the 15-25% range, as we remain constructive on both the Long and Short sides.

• We keep strong convictions on the Long side in European companies excelling globally and benefiting from local monopolies.

• These include industries such as luxury goods, specialty engineering, ERP software, specialty chemicals, medical technology, aerospace and defense, and classifieds.

• We believe Europe presents for the first time in a long time a very attractive entry point, with a risk/reward skewed to the upside thanks to several factors we discuss in our latest quarterly letter.

• Germany has removed the fiscal drag which has weighted on Europe for more than a decade and the upcoming defense and infrastructure historic investment plan will have a profound impact on the overall region.

• On the short side, we continue to find many new names in the Consumer and Industrials spaces with poor balance sheets and deteriorating fundamentals, bringing tightened margins and profit warnings.