Calendar Year Performance 2014Calendar Year Performance 2015Calendar Year Performance 2016Calendar Year Performance 2017Calendar Year Performance 2018Calendar Year Performance 2019Calendar Year Performance 2020Calendar Year Performance 2021Calendar Year Performance 2022Calendar Year Performance 2023
+ 2.9 %
- 7.3 %
+ 10.6 %
+ 17.3 %
+ 5.1 %
+ 1.4 %
+ 7.6 %
+ 14.0 %
- 4.4 %
+ 2.0 %
Net Asset Value
180.62 £
Asset Under Management
573 M $
Market
European market
SFDR - Fund Classification
Article
8
Data as of: 25 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 Portfolio Long-Short European Equities 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.
Market environment
Global stock markets reached new highs in June, with the largest caps driving indices.
The Magnificent 7 again led the way, semiconductors and AI dominated, consumer attitudes shifted, and macroeconomic data was weak.
Investors embarked on the first half of 2024 with optimism, in the belief that employment was stable, inflation was starting to fall, commodity costs were favourable, interest rates could be lowered, and holiday spending was firm.
Consumer spending trends reversed in June due to mounting pressures on consumers, customs duties, and greater focus on shipping issues.
The ISM services index dropped nearly 4 points to its lowest level since Covid, while the Atlanta Fed revised its GDP forecast down from 3% to 1.5% in the second half of the month.
Equity dispersion remains very high with some attractive weak spots to exploit.
Performance commentary
In June, the fund posted a positive performance, driven by both our Core Longs and our Alpha Shorts.
Overall, the surge in Tech stocks was driven by robust earnings, AI optimism, and the ongoing digital transformation.
Our semi-conductor positions performed particularly well, as the demand for AI servers from datacenters drives the growth in HBM/DDR5 and enterprise SSDs amidst a tight leading-edge supply environment.
We continue to keep a strong exposure to that theme as we remain at the early stages of the memory cycle up-cycle.
On the Short side, we had strong contributions from several stocks which profit warned.
Our largest short position was Nike. As we expected, they experienced a meaningful deceleration in the lifestyle category and muted wholesale order books following several management missteps in their strategic plan.
Our aggressive accounting Shorts also performed particularly well as revenue and margin misses get particularly penalized by the market.
Outlook strategy
The net exposure of the strategy came down to close to 10%; and our gross exposure stayed stable above 200%.
As fundamentals are back at driving stock prices, we continued to reinforce our convictions on both the long and short side and our portfolio is back to a normal level of convictions.
On the long side of the book, our portfolio in our Core Long book has been stable with strong convictions in Prada in the Luxury sector and several positions in the Technology sector like Nova Limited, Hynix or SAP; as well as some defensive positions like Novo Nordisk and Deutsche Telekom.
On the short side, we continue to find many new names in the Consumer, Industrials and Technology spaces with poor balance sheets and deteriorating fundamentals, bringing tightened margins and profit warnings.
Overall, we keep strong convictions in our Core Long book and have sized up these positions accordingly. We feel the current environment is quite conducive to our conviction-led portfolio.
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.
Carmignac Portfolio is a sub-fund of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive.
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Market environment