Alternative strategies

Carmignac Absolute Return Europe

FCPEuropean marketArticle 8
Share Class

FR0010149179

An opportunistic and style agnostic long/short approach to European equities
  • A diversified portfolio, based on a top-down and bottom-up approach, to take advantage of market inefficiencies.
  • Active management of the net equity exposure (-20% to +50%).
Key documents
Risk Indicator
3/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 135.3 %
+ 35.9 %
+ 17.6 %
+ 3.9 %
+ 7.0 %
From 02/01/2003
To 19/07/2024
Calendar Year Performance 2023
+ 2.5 %
- 8.0 %
+ 8.9 %
+ 14.6 %
+ 4.4 %
- 1.3 %
+ 5.2 %
+ 12.6 %
- 6.4 %
0.0 %
Net Asset Value
425.09 €
Asset Under Management
212 M €
Market
European market
SFDR - Fund Classification

Article

8
Data as of:  19 Jul 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor).

Carmignac Absolute Return Europe fund performance

Take a look at the Fund's performance supported by our Fund managers’ market commentary and strategy insight.

Our monthly comments

Data as of:  28 Jun 2024.
Fund management team

Johan Fredriksson

Fund Manager

Dean Smith

Fund Manager

Market environment

  • June was a volatile month in which political risk eventually subsided, with mixed results for equities, bonds and oil, and a stronger dollar that weakened commodities.
  • Looking at equity markets, the United States outperformed Europe (the EU being greatly affected by concerns about French elections) and large caps outperformed small and mid caps.
  • With limited corporate business news, macroeconomic and political themes were the main drivers for equity markets.
  • Political uncertainty prevailed in Germany, the United Kingdom, the United States and especially France, where Emmanual Macron’s surprise decision to call an election fuelled a surge in bond yields and a slump in French share prices.
  • The CAC lost more than 6% in June, its sharpest monthly fall in years.
  • European equities as a whole were down with the Stoxx 600 shedding 1.3%.
  • The construction, automotive and financial sectors were the main laggards, whilst technology and healthcare were the top performers.

Performance commentary

  • The Fund delivered a positive return in June.
  • The main contributors to monthly performance were long positions in technology, finance and communication services, along with short positions in consumer discretionary.
  • In equities, there were several winners:
  • First Solar, which is benefiting from the need for new energy sources to accelerate AI takeup; Nvidia, whose figures remain impressive;
  • Meta, which is spreading positive sentiment about the beneficiaries of AI; Microsoft following positive comments about AI product announcements; and UBS, which published strong Q1 results.

Outlook strategy

  • We further expanded our AI beneficiaries theme to include other industries that will help support its roll-out.
  • More specifically, we have started looking for companies that could help produce the green energy so desperately needed to power data centres.
  • We strengthened an existing position and opened two new ones, which we think will be very promising as the economy picks up over the years ahead.
  • We also added some quality growth stocks while taking profits on consumer names including Beiersdorf and Richemont, which had reached our price targets.
  • In the consumer discretionary sector, we kept developing our short-selling strategy to take advantage of weakening consumer spending trends.
  • In technology, we seized on the short squeeze to add a few new short positions in companies whose fundamentals still look fragile.
  • Our overall gross exposure reached 130%-140% during the month, while our net exposure averaged +20%.

Performance Overview

Data as of:  19 Jul 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). Morningstar Rating™ :  © Morningstar, Inc. All Rights Reserved. The information contained herein: is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.From 1 January 2022, the Fund’s investment objective is an absolute performance objective.
Source: Carmignac at 23/07/2024

Carmignac Absolute Return Europe Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  28 Jun 2024.
Europe EUR26.8 %
Other countries18.4 %
North America13.0 %
Europe ex-EUR12.0 %
Others5.4 %
Equity Basket Derivatives1.2 %
Index Derivatives-33.2 %
Total % of alternative43.5 %
Europe EUR26.8 %
deGermany
12.2 %
nlNetherlands
4.8 %
frFrance
4.0 %
ieIreland
1.8 %
beBelgium
1.6 %
itItaly
1.4 %
esSpain
0.8 %
grGreece
0.5 %
Luxembourg
0.1 %
fiFinland
-0.1 %
atAustria
-0.3 %

Key figures

Below are some key figures to help you understand the Fund's management and positioning.

Exposure Data

Data as of:  28 Jun 2024.
Net Equity Exposure25.1 %
Beta+0.1 %
Sortino Ratio+3.5
Number of Holdings62

The strategy in a nutshell

Discover the Fund’s main features and benefits through the words of the Fund Managers.
Fund Management Team

Johan Fredriksson

Fund Manager

Dean Smith

Fund Manager
Our objective is to provide a long-term absolute capital growth thanks to our dynamic and opportunistic take on European equities.

Dean Smith

Fund Manager
View Fund's characteristics
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.
The Fund is a common fund in contractual form (FCP) conforming to the UCITS Directive under French law.