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Alternative strategies

Carmignac Absolute Return Europe

French mutual fund (FCP)European marketSRI Fund Article 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
Monthly FactsheetKID
Risk Indicator
3/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 133.5 %
+ 36.4 %
+ 14.8 %
- 2.8 %
+ 3.9 %
From 02/01/2003
To 19/12/2024
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
421.91 €
Asset Under Management
192 M €
Market
European market
SFDR - Fund Classification

Article

8
Data as of:  19 Dec 2024.
​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.
Alternative strategiesCarmignac Absolute Return Europe
Alternative strategiesCarmignac Absolute Return Europe
Share Class

FR0010149179

Overview

Characteristics & Risks

Performance

Portfolio

ESG

Documents

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:  29 Nov 2024.
Fund management team

Johan Fredriksson

Fund Manager

Dean Smith

Fund Manager

Market environment

  • The US election result was the primary driver of global market performance in November.
  • Donald Trump’s election victory spurred expectations of potential tax cuts, deregulation, expansionary fiscal policy, and the implementation of a more nationalist trade policy. This led to a significant outperformance of US equities (the Trump Trade") relative to the rest of the world.

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

• Building on last month's strategy, we capitalized on the early-month EU market sell-off by increasing our high-conviction long positions and covering or reducing shorts that were nearing their price targets.• At the sector level, we decreased our exposure to consumer staples and utilities, while increasing our allocation to healthcare following the sector's decline after Trump's selection of Kennedy Jr. as the new Health & Human Services Secretary.• We also added to our position in the Swiss company Galderma, making it one of our top 10 holdings. Galderma boasts a strong franchise in science-based skincare products and has a robust pipeline of new product launches, which we believe will drive market share gains and strong earnings growth.• Despite the volatility in European equities, we maintained disciplined market exposure, with gross exposure around 105% and net exposure between 18-25%.• In the short term, we anticipate that EU equities will begin to catch up with their US counterparts. At the start of the month, we observed that not only was the performance gap between the EU and US too wide, but so were the valuations.• Consequently, we have increased our positions in value and cyclical stocks in the EU to participate in this 'catch-up' trade, which is gradually gaining momentum.

Performance Overview

Data as of:  19 Dec 2024.
View Performance in detail
​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 21/12/2024

Carmignac Absolute Return Europe Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  29 Nov 2024.
Europe EUR18.3 %
Europe ex-EUR13.1 %
North America8.4 %
Others1.8 %
Index Derivatives-22.8 %
Total % of alternative18.8 %
Europe EUR18.3 %
deGermany
5.8 %
frFrance
5.4 %
nlNetherlands
3.5 %
itItaly
2.8 %
grGreece
0.6 %
beBelgium
0.5 %
ieIreland
0.3 %
Luxembourg
0.3 %
esSpain
-0.2 %
fiFinland
-0.7 %
View Portfolio allocation

Key figures

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

Exposure Data

Data as of:  29 Nov 2024.
Net Equity Exposure18.8 %
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
View characteristics and risks
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.