Carmignac Portfolio Long-Short European Equities

• After a volatile spring, US markets rebounded sharply in June. The S&P 500 and Nasdaq 100 both reached new all-time highs by the end of the month, with the S&P 500 rising 5.1% in June alone. • The European stock market consolidated after a strong start to the year, amid tariff uncertainties and sector rotation. • The Iran-Israel crisis in mid-June caused a brief dip in global indices, but markets quickly recovered following news of a ceasefire later in the month. • Germany’s announcement of a €46 billion tax relief package boosted the DAX. The eurozone showed signs of economic recovery, with improving business sentiment and consumer confidence. • However, significant risks remain, including unresolved tariffs, economic slowdown fears and fiscal challenges.

• In June, the fund posted a positive performance, driven by our Long and Short books.• Our Core Longs drove our performance on the Long side, particularly thanks to our semiconductor positions in ASM International, BE Semiconductor or SK Hynix, which benefit from the increased demand for advanced chips. • Throughout the second quarter, we have rebuilt our exposure to the semiconductor space, as we see a continuous surge in demand for AI, cloud computing and data infrastructure, driving unprecedented chip consumption over the near future. • Our Trading Longs had a positive contribution to our performance. Sopra Steria (+23bps), a large IT service management company, presented its aerospace and defence capabilities at the Paris air show, which provides medium-term growth drivers to the stock. • On the Short side, our Alpha Shorts generated alpha. One of our top contributors was Pearson (+21bps), which has been experiencing headwinds on the demand side and from the broader US education sector’s uncertainties.

• 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.