Alternative strategies

Carmignac Absolute Return Europe

European 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%).
  • Strong discipline of portfolio risk management to contain the downside.
Key documents
Risk Indicator

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Lowest risk Highest risk
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 131.4 %
+ 29.0 %
+ 8.8 %
- 3.3 %
- 2.7 %
From 02/01/2003
To 04/07/2025
Calendar Year Performance 2024
- 8.0 %
+ 8.9 %
+ 14.6 %
+ 4.4 %
- 1.3 %
+ 5.2 %
+ 12.6 %
- 6.4 %
0.0 %
+ 3.6 %
Net Asset Value
418.08 €
Asset Under Management
168 M €
Net Equity Exposure30/05/2025
18.1 %
SFDR - Fund Classification

Article

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Data as of:  Jul 4, 2025.
​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.

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:  Jun 30, 2025.
Fund management team

Johan Fredriksson

Fund Manager

Dean Smith

Fund Manager

Market environment

• Geopolitical tensions once again dominated capital markets in June, with headlines led by Israel’s strike on Iran and subsequent U.S. involvement targeting Iranian nuclear facilities. These developments significantly influenced investor sentiment throughout the month.• Toward month-end, U.S. Treasury yields began to decline, driven by softer macroeconomic data. This shift prompted equity markets to start pricing in potential rate cuts anticipated later in the summer. • U.S. equities outperformed their European counterparts, which experienced modest profit-taking. As a result, the Stoxx 600 index declined by -1.33% over the month. • Within European markets, sector performance was mixed. Energy, Technology, Construction, and Industrials led the gains, while Food & Beverages, Consumer Products & Services, Media, and Retail lagged.

Performance commentary

• Despite a period of geopolitically driven volatility and some profit-taking in European equities, the fund delivered a positive net return in June.• At the sector level, the strongest contribution came from Technology—particularly our semiconductor holdings—followed closely by Industrials, which continued to benefit from market focus on growing investment in power generation and grid infrastructure. • Retail Banks and Communication Services also added positively to performance. In contrast, Consumer sectors, Healthcare, and Materials were modest detractors, posting slightly negative returns for the month. • Key stock selection contributors included long positions in Prysmian, which gained on increasing order flow tied to electricity grid upgrades; ASM International, supported by a strong outlook for AI-driven chip demand; and SK Hynix, which benefited from robust demand for high-bandwidth memory used in AI applications. • Stock selection detractors included a long position in Deutsche Telekom, which declined amid dollar weakness and profit-taking in its U.S. mobile business, and Prada, which sold off despite strong fundamentals, impacted by profit warnings from peers in the luxury sector.

Outlook strategy

• We continued to actively scale both long and short positions, increasing gross exposure to around 130% and net exposure to around 30%. Net exposure remains dynamic, typically fluctuating by ±10 percentage points depending on index option hedging.• At the sector level, we added to Technology, particularly in analogue semiconductors, where early signs of recovery are emerging following an 18-month inventory correction. • We also increased exposure to Industrials, focusing on names linked to electrification trends, and to Consumer Discretionary via e-commerce beneficiaries Prosus and Allegro. • Beyond the ongoing U.S. tariff discussions—which are nearing initial deadlines but may be delayed into late July or early August—the key focus for markets will shift to the Q2 earnings season. • Equally important will be how current market positioning holds up in underperforming sectors and stocks. • We remain cautious on some of our consumer short positions, which have delivered strong returns year-to-date. Despite weak fundamentals, the risk of negative revisions already being priced in requires us to stay agile and ready to adjust exposure as needed.

Performance Overview

Data as of:  Jul 4, 2025.
​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.The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged. From 1 January 2022, the Fund’s investment objective is an absolute performance objective.
Source: Carmignac at 08/07/2025

Carmignac Absolute Return Europe Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  May 30, 2025.
Europe EUR30.7 %
Europe ex-EUR8.9 %
North America4.2 %
Others2.9 %
Index Derivatives-28.6 %
View details

Key figures

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

Exposure Data

Data as of:  May 30, 2025.
Net Equity Exposure18.1 %
Issuer equity derivative short35
Issuer equity derivative long66

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

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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.
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.