Alternative strategies

Carmignac Portfolio Merger Arbitrage Plus

SICAVGlobal marketArticle 8
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An active absolute return strategy focusing on merger arbitrage opportunities
  • An active merger arbitrage strategy that aims to provide positive absolute returns, with limited correlation to equity markets.
  • An alternative strategy with a socially responsible investment approach, focusing on officially announced M&A deals in the developed markets.
Risk Indicator
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 5.4 %
0.0 %
0.0 %
0.0 %
+ 5.8 %
From 14/04/2023
To 21/06/2024
Calendar Year Performance 2023
+ 4.1 %
Net Asset Value
105.4 $
Asset Under Management
154 M $
Global market
SFDR - Fund Classification


Data as of:  21 Jun 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 Merger Arbitrage Plus 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:  31 May 2024.
Fund management team

Market environment

  • May was a difficult month for the strategy, with the HFRX Merger Arbitrage index down 0.8%.

  • This was partly due to the increase in the DS Smith spread amid rumours of an offer for its potential buyer, International Paper, from Brazil’s Suzano.

  • Other spreads also rose in May, though without anything specific to point out: Hess, Ansys and Cerevel Therapeutics

  • A few major deals were completed: Pioneer Natural Resources, SP Plus and MorphoSys

  • It seems the resources freed up are being reallocated to some recently announced smaller deals, on which spread are fairly small.

  • M&A activity is holding up well with 30 new deals announced in May for a total of $114bn. Most of this growth is coming from Europe and Asia.

  • Private Equity funds account for nearly half of all bidders in deals announced during the month.

Performance commentary

  • The Fund delivered a positive return.

  • The main contributors were: Pioneer Natural Resources, SP Plus and MorphoSys

  • The main hindrances were: Hess, Ansys and Cerevel Therapeutics

  • We had no position on the DS Smith spread when rumours emerged about an offer for its potential buyer. Shortly after, though, we opened a small position when the risk-reward profile looked interesting.

Outlook strategy

  • The Fund’s investment rate increased from 98% to 100% given the large number of deals closed in May.

  • With 42 positions in the portfolio, diversification remains satisfactory.

  • 2024 should see the M&A cycle pick up due to the stabilisation (or even reduction) in interest rates, the energy transition spreading to more sectors of the economy, private equity funds making a return, and Japanese stock markets undergoing regulatory change.

  • The risk premium on the Merger Arbitrage strategy still offers investors some attractive returns, especially at a time when few deals are collapsing.

Performance Overview

Data as of:  21 Jun 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.
Source: Carmignac at 25/06/2024

Carmignac Portfolio Merger Arbitrage Plus Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  21 Jun 2024.
North America33.6 %
Other countries17.1 %
Europe ex-EUR15.9 %
Europe EUR-1.0 %
Total % of alternative65.6 %
North America33.6 %
29.3 %
4.4 %

Key figures

Below are the key figures for the Fund, which will give you a clearer idea of the Fund's management and equity positioning.

Exposure Data

Data as of:  21 Jun 2024.
Equity Investment Weight75.7 %
Net Equity Exposure65.6 %
Number of Equity Issuers39
Active Share50.0 %

The strategy in a nutshell

Discover the Fund’s main features and benefits through the words of the Fund Managers.
Fund Management Team
The advantage of Merger Arbitrage strategy is that it carries virtually no market risk. The only associated risk is that of a deal failure. That is why our approach is very cautious on two levels: we’re very selective in choosing the deals and we aim to maintain a highly diversified portfolio.
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.
Carmignac Portfolio is a sub-fund of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive.