Alternative strategies

Carmignac Absolute Return Europe

European marketSRI Fund Article 8
Share Class

FR001400JG56

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
2/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 7.5 %
0.0 %
0.0 %
0.0 %
+ 2.4 %
From 31/08/2023
To 10/02/2025
Calendar Year Performance 2024
-
-
-
-
-
-
-
-
+ 2.1 %
+ 3.7 %
Net Asset Value
107.52 €
Asset Under Management
192 M €
Market
European market
SFDR - Fund Classification

Article

8
Data as of:  10 Feb 2025.
​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:  31 Jan 2025.
Fund management team

Johan Fredriksson

Fund Manager

Dean Smith

Fund Manager

Market environment

  • January saw a positive start to 2025 with equities and bonds delivering positive returns.

  • However, along the way there were two major road bumps, Trump tariff headlines & emergence of Chinese artificial intelligence company DeepSeek, both events causing spikes in volatility and the latter more importantly triggering a significant sell off in AI related stocks. Most notably, it caused the largest one-day loss of market capitalization for a single stock (Nvidia) ever.

  • European equities outperformed US equities, breaking a multi-year trend of European underperformance. This development aligned closely with our predictions and commentary in our quarterly outlook.

  • Growth stocks outperformed value and cyclicals outperformed defensives.

  • All sectors in Europe were up with leadership from Consumer Products, Financials, Industrials, Technology and Healthcare while utilities, and staples were the laggards.

Performance commentary

  • The fund produced a positive return for January.

  • The main positive contributors came from stock selection in Financials, Industrials, Communications and Healthcare. In a buoyant market where every single sector was up the main detractors came from individual stock shorts and our futures and options portfolio hedging program.

  • Key stock selection winners included long positions in Deutsche Telekom, driven by expectations of a positive Q4 earnings report; SAP, which not only reported an earnings beat but also raised its guidance for 2025; and Meta, which demonstrated strong confidence in its AI positioning, supported by robust financial performance.

  • The main laggards from stock selection were our long positions in Broadcom, which were negatively affected by the Deepseek AI sell-off, a short position in Consumer Staples that suffered due to a market squeeze, and a short position in a Luxury stock that underperformed after its peer, Richemont, reported better-than-expected results.

Outlook strategy

  • In January we took the decision to increase our gross exposure having reduced it into the more uncertain and higher volatility market we anticipated into the end of 2024.

  • We took our gross exposure from around 100%, to closer to 130%, and selectively added risk, mainly in Europe, seeing our net exposure steadily drifting from 20% to mid 20’s%. As part of this process, we increased exposure to Financials, Communications and Consumer Discretionary.

  • At the single stock level we initiated new longs in media company Informa, a Swiss building materials company Sika and Sandoz, a biosimilar drug manufacturer.

  • As we write this, early Feb, we are approaching the mid-point of the ongoing FY24 reporting season. Given market volatility, we aim to take risks only where there is a favorable risk-reward ratio and hedge outsized positions ahead of results. Our primary focus remains on corporates for the next 2-3 weeks.

  • Macro and political factors continue to dominate headlines, with central bank risks appearing to have diminished as market expectations around rate cuts have reset. In the EU, anticipated rate cuts and economic sensitivity to these cuts are key factors. Additionally, a potential peace deal in Ukraine could create opportunities, prompting us to focus on 'peace' beneficiary names like Sika, Wienerberger, and Kingspan.

Performance Overview

Data as of:  10 Feb 2025.
​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 12/02/2025

Carmignac Absolute Return Europe Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  31 Jan 2025.
Europe EUR28.1 %
Europe ex-EUR12.3 %
North America11.8 %
Others2.4 %
Index Derivatives-21.9 %
Total % of alternative32.6 %
Europe EUR28.1 %
nlNetherlands
6.7 %
deGermany
6.1 %
frFrance
5.3 %
itItaly
5.3 %
beBelgium
2.7 %
ieIreland
2.3 %
grGreece
1.0 %
Luxembourg
0.8 %
atAustria
0.6 %
fiFinland
-1.1 %
esSpain
-1.5 %

Key figures

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

Exposure Data

Data as of:  31 Jan 2025.
Net Equity Exposure32.6 %
Beta+0.2 %
Sortino Ratio+0.1
Number of Holdings52

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
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.