Alternative strategies

Carmignac Portfolio Merger Arbitrage Plus

SICAVGlobal marketArticle 8
Share Class


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
+ 4.3 %
0.0 %
0.0 %
0.0 %
+ 4.7 %
From 14/04/2023
To 11/07/2024
Calendar Year Performance 2023
+ 2.8 %
Net Asset Value
104.32 €
Asset Under Management
147 M €
Global market
SFDR - Fund Classification


Data as of:  11 Jul 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 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:  28 Jun 2024.
Fund management team

Market environment

  • June was a highly volatile month for the Merger Arbitrage strategy, with the HFRX Merger Arbitrage index down -0.2% for the month and -3.3% year-to-date.
  • This tension was partly due to significant variations in the discounts of Ansys, DS Smith, Southwestern Energy and Hess amongst others.
  • The closure of two multi-asset funds’ Merger Arbitrage portfolios has likely amplified this volatility.
  • Apart from Shockwave Medical (USD 12 billion), no big deals were completed in June, explaining why other discounts showed a degree of stability.
  • There was one failure to report: the acquisition of Karnov by a private equity group in Sweden, as the acceptance threshold was not met.
  • 30 new deals were announced, as in the previous month, but for a lower total of around USD 60 billion.
  • Growth in M&A activity was mainly driven by the United States this month, with deal sizes averaging some USD 5 billion.

Performance commentary

  • The Fund delivered a positive return.
  • The main sources of performance were: DS Smith, Catalent and Olink
  • The main drags on performance were: Ansys, Darktrace and MMA Offshore
  • As we wrote last month, we had no position on the DS Smith discount when rumours emerged about Suzano (Brazil) making an offer for its potential buyer, International Paper.
  • However, the small position that we opened soon after proved very profitable when Suzano announced at the end of June that it was withdrawing its bid for International Paper.

Outlook strategy

  • The Fund’s investment rate was relatively stable at around 104%.
  • With 45 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:  11 Jul 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.
Source: Carmignac at 13/07/2024

Carmignac Portfolio Merger Arbitrage Plus Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  28 Jun 2024.
Other countries50.6 %
North America33.7 %
Europe ex-EUR16.2 %
Europe EUR-0.3 %
Total % of alternative100.1 %
Other countries50.6 %
29.3 %
8.2 %
4.4 %
3.8 %
aeUnited Arab Emirates
2.8 %
1.1 %
1.0 %

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:  28 Jun 2024.
Equity Investment Weight73.8 %
Net Equity Exposure66.5 %
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.
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.