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
Cumulative Performance 10 YearsCumulative Performance 5 YearsCumulative Performance 3 YearsCumulative Performance 12 Months
+ 39.3 %
+ 33.7 %
+ 13.3 %
+ 5.5 %
+ 6.5 %
To 15/05/2024
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
+ 2.5 %
- 8.0 %
+ 9.1 %
+ 14.6 %
+ 4.3 %
- 1.3 %
+ 5.3 %
+ 12.6 %
- 8.6 %
-
Net Asset Value
131.7 €
Asset Under Management
219 M €
Market
European market
SFDR - Fund Classification
Article
8
Data as of: 15 May 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.
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: 30 Apr 2024.Fund management team
Johan Fredriksson
Fund Manager
Dean Smith
Fund Manager
Performance commentary
In these difficult conditions, the Fund reversed some of the gains accumulated earlier in the year, with a negative monthly performance. By way of comparison, the EURO STOXX was down 3.3% and the Nasdaq 4.2%. Our short portfolio, which includes derivative hedges, returned +1.20% but our long portfolio negated this with a loss of -2.81%. The main drags were technology, industrial and fintech stocks, on which investors took lots of profits after strong early-year gains. The top contributors to equity performance were in healthcare and included our new position in AstraZeneca, which published solid Q1 earnings and announced positive developments with its R&D medicines portfolio. We still think the stock will climb at least until its board meeting later in May. Our biggest position in the luxury goods sector, Prada, also continued to bear fruit. Prada’s earnings surpassed expectations, lending weight to our view that the company could enjoy a reversal of fortunes and strengthen its brand. The heaviest blow to the Fund in April came from digital payments company Adyen, which fell just short of its Q1 sales forecasts and saw its share price tumble 18% in one day. Other long positions on technology stocks were hit by profit-taking after a recent surge, amid fears of higher interest rates. The portfolio’s activity during the month was therefore centred around risk management and repositioning whenever opportunities arose. Our total gross exposure was trimmed from 135% to 125% while net exposure stayed close to +20%.Outlook strategy
We are now approaching the mid-way point in the Q1 reporting season and although the market has not reacted very well to announcements made, earnings have – on average – beaten most analysts’ forecasts. All in all, we think that the bottom-up approach to most of the universe on which we are concentrated is therefore appropriate. We still believe in a barbell strategy for the portfolio. Firstly because there are several reasons why structural factors such as artificial intelligence, the cyclical upswing for semiconductors, and GLP-1 pharmaceutical products will become even more important over the coming quarters. Secondly because global investors are increasingly looking to diversify towards cyclical names and value stocks. This brings Europe back to the forefront, and we think that our Fund is very well placed to take advantage of it. The ECB will probably be the first major central bank to cut interest rates, and this should kick-start a recovery in other EU industries like construction, to which we are now devoting more time. We also believe that EU banks and financials are undervalued when judged by the profits and cash that they return to their investors.Performance Overview
Data as of: 15 May 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™ : © YYYY 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 17/05/2024
Carmignac Absolute Return Europe Portfolio overview
Below is an overview of the composition of the portfolio.Geographical Breakdown
Data as of: 30 Apr 2024.| Europe EUR | 31.3 % |
| Europe ex-EUR | 10.7 % |
| North America | 9.5 % |
| Other countries | 4.2 % |
| Index Derivatives | -32.4 % |
| Total % of alternative | 23.3 % |
Europe EUR31.3 %
 Germany | 12.0 % |
 Netherlands | 7.2 % |
 Italy | 3.8 % |
 Ireland | 3.6 % |
 France | 3.4 % |
 Greece | 1.2 % |
 Finland | 0.5 % |
 Spain | 0.1 % |
 Luxembourg | -0.2 % |
 Austria | -0.3 % |
Key figures
Below are some key figures to help you understand the Fund's management and positioning.Exposure Data
Data as of: 30 Apr 2024.Net Equity Exposure23.3 %
Beta+0.1 %
Sortino Ratio+3.1
Number of Holdings67
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
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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.
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.
Market environment
April proved to be a very difficult month for most risky assets. In our monthly newsletter for March, we highlighted the risks that lie ahead, not just from the Middle East conflict but also future inflation figures and consequent changes in interest rate expectations, not to mention the uncertainty surrounding corporate earnings given the market’s relatively bullish positioning at the time. However, we were not really expecting Iran to attack Israeli territory. The escalation of tension in the region, lukewarm macroeconomic data and persistent inflation made investors more defensive in April, with global equities and bonds down, and commodities and the dollar up. Higher-than-expected inflation figures pushed up bond yields and delayed US rate cuts, which even left European investors wondering about the ECB’s own timing. Risk premia and equity volatility increased as a result, and investors’ confidence quickly evaporated.