Alternative strategies

Carmignac Absolute Return Europe

French mutual fund (FCP)European marketSRI Fund Article 8
Share Class

FR0011269406

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
+ 38.4 %
+ 36.6 %
+ 13.5 %
- 5.4 %
+ 5.0 %
From 18/06/2012
To 03/12/2024
Calendar Year Performance 2023
+ 2.5 %
- 8.0 %
+ 9.1 %
+ 14.6 %
+ 4.3 %
- 1.3 %
+ 5.3 %
+ 12.6 %
- 8.6 %
0.0 %
Net Asset Value
130.83 €
Asset Under Management
194 M €
Market
European market
SFDR - Fund Classification

Article

8
Data as of:  Dec 3, 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:  Oct 31, 2024.
Fund management team

Johan Fredriksson

Fund Manager

Dean Smith

Fund Manager

Market environment

  • October saw significant market volatility with stock leadership dominated by macro factors which is unusual in a month with a heavy reporting schedule.

  • Sentiment was undermined by political uncertainty and rising bond yields most notably in the US which rose from 3.75% to 4.28% in a matter of weeks, and in the UK where yields spiked after a poorly received UK budget.

  • This toxic combination drove aggressive rotation and a sell off into the end of the month leaving European equities -3% for the month, making October the worst monthly return of the year.

  • Within Europe the only positive sectors were Banks, Travel & Leisure, telecoms and Energy, every other sector was down on the month.

Performance commentary

  • October was a frustrating month as the fund return was positive for the month, up until the very last day, when the market sold off due to a combination of macro driven and sector rotation pushing the fund into a small loss.

  • Our short book and derivatives hedging overlay produced a positive return, but this was modestly offset by losses in our long book.

  • Within the portfolio the most positive sector returns came from Financials and Communications while the main detractors came from Technology, Consumer Discretionary and Real Estate

  • • Key winners from our stock selection included our long position in Standard Chartered, which saw an earnings beat driven by strong performance in Asian wealth management, and our long position in Deutsche Telekom, which benefited from a positive capital markets day.

  • Other notable winners were our long position in SAP, which performed well after reporting strong numbers that highlighted accelerating growth, and our short position in a German IT services company, which posted a profit warning due to deteriorating demand.

  • The biggest laggards from our stock selection were our long position in ASML, which reported weak orders and provided lower guidance for 2025, and our long position in First Solar, which reported earnings below forecast.

  • Overall sector adjustments were modest but at the stock level we added to Financials, Communications and cyclical names in Industrials and Consumer Discretionary through a combination of short covering and additions to longs.

  • We continued to run a relatively low gross of around 105% while net was maintained within a range of 15% -mid 20S%.

Outlook strategy

  • Over the last 5 months, global equity markets have been at the ‘mercy’ of unusual and highly unpredictable macro & political forces.

  • Some events have been extremely hard to negotiate, causing big moves and fast sector rotations. A tough environment to be a bottom-up stock picker.

  • So, we now embrace the next months ahead. We believe stock picking, thematic investing, that actually works with longer than just days or at best weeks durations, should make it less difficult both for our Long & Short book.

  • Meanwhile, our views and sector selection remains largely unchanged, with a barbell approach, balance between Growth and Value.

Performance Overview

Data as of:  Dec 3, 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 04/12/2024

Carmignac Absolute Return Europe Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  Oct 31, 2024.
Europe EUR19.9 %
Europe ex-EUR15.9 %
North America7.4 %
Others0.9 %
Index Derivatives-27.1 %
Total % of alternative17.0 %
Europe EUR19.9 %
deGermany
7.6 %
frFrance
4.9 %
nlNetherlands
3.7 %
itItaly
1.9 %
beBelgium
0.5 %
ieIreland
0.5 %
Luxembourg
0.5 %
grGreece
0.4 %
esSpain
0.3 %
fiFinland
-0.4 %

Key figures

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

Exposure Data

Data as of:  Oct 31, 2024.
Net Equity Exposure17.0 %
Beta+0.2 %
Sortino Ratio+0.3
Number of Holdings55

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.