Alternative strategies

Carmignac Portfolio Merger Arbitrage

Luxembourg SICAV sub-fundGlobal marketSRI Fund Article 8
Share Class

LU2585800795

A defensive strategy focusing on merger arbitrage opportunities
  • A defensive merger arbitrage strategy that aims to provide better than money market 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.
Key documents
Monthly Factsheet (including ESG data)KID
Risk Indicator
2/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 5.1 %
0.0 %
0.0 %
0.0 %
+ 3.0 %
From 14/04/2023
To 20/11/2024
Calendar Year Performance 2023
-
-
-
-
-
-
-
-
-
+ 2.5 %
Net Asset Value
105.12 €
Asset Under Management
50 M €
Market
Global market
SFDR - Fund Classification

Article

8
Data as of:  20 Nov 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 Portfolio Merger Arbitrage
Alternative strategiesCarmignac Portfolio Merger Arbitrage
Share Class

LU2585800795

Overview

Characteristics & Risks

Performance

Portfolio

ESG

Documents

Carmignac Portfolio Merger Arbitrage 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 Oct 2024.
Fund management team

Market environment

  • After a few months of relative calm, and in the run-up to the US presidential elections, the 3rd quarter saw a return to volatility in merger arbitrage discounts.
  • The main news of the month was the US court's decision to block Tapestry's acquisition of Capri (Michael Kors, Versace, Jimmy Choo) because of concerns that the merger would weaken competition.
  • While the financial markets were hoping for a decision in favour of the two fashion companies, the ruling was a success for the US competition authority, the FTC, and its head, Lina Khan.
  • Another setback came as a surprise to the merger arbitrage market in Asia with the withdrawal of Sinopharm Common Wealth's bid for minority stakes in China Traditional Chinese Medicine following the failure to obtain the conditions required to initiate the offer.
  • These two setbacks have increased pressure on merger arb spreads in general, but more particularly on deals such as Catalent and Surmodics, which are the subject of an in-depth review by the US administration.
  • The HFRX Merger Arbitrage index fell by 0.97% over the month (-1.87% YTD).
  • Against this volatile backdrop, around twenty deals came to an end and only 16 were announced.
  • The biggest deal announced this month was the acquisition of German chemical company Covestro by Abu Dhabi's state-owned oil company, after several months of rumours. This is the biggest acquisition of a European company by a Gulf country.

Performance commentary

  • We were not invested in China Traditional Chinese Medicine and were relatively little invested in Capri, which meant that we were relatively less affected by the renewed volatility seen in October.
  • The fund posted a positive performance over the month.
  • Main contributors to performance: Nuvei, Concentric, Aaron's and Neoem.
  • Main detractors from performance: Capri, Catalent, Hess and Discover Financial.

Outlook strategy

  • The fund's investment rate is 44%, down on the previous month.
  • With 39 positions in the portfolio, diversification remains satisfactory
  • 2024 marked the resumption of the M&A cycle, driven in particular by falling interest rates, the energy transition affecting many sectors of the economy, the return of private equity funds and the change in stock market regulations in Japan.
  • The risk premium offered by the Merger Arbitrage strategy continues to provide attractive returns for investors, especially in an environment where deal failure rates remain low.

Performance Overview

Data as of:  20 Nov 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.
Source: Carmignac at 21/11/2024

Carmignac Portfolio Merger Arbitrage Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  31 Oct 2024.
North America15.5 %
Europe EUR7.0 %
Europe ex-EUR6.8 %
Others5.0 %
Total % of alternative34.3 %
North America15.5 %
usUSA
12.8 %
caCanada
2.8 %
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:  31 Oct 2024.
Net Equity Exposure34.3 %
Beta0.0 %
Sortino Ratio-1.5
Number of Holdings36

The strategy in a nutshell

Discover the Fund’s main feature and benefits through the words of the Fund Managers.
Fund Management Team
Our approach is based on rigorous selection of the Merger & Acquisition transactions, included in the portfolio, careful sizing of these positions and, lastly, diversification.

Fabienne Cretin-Fumeron

Fund Manager
View Fund's characteristics

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All analysis
View characteristics and risks
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.
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.