Alternative strategies

Carmignac Portfolio Long-Short European Equities

SICAVEuropean marketArticle 8
Share Class

LU0992627298

A high-conviction long/short approach to European equities
  • A bottom-up fundamental approach to maximise long and short alpha generation.
  • Active management of the net equity exposure (-20% to +50%) ensuring great responsiveness to market fluctuations.
Key documents
Risk Indicator
3/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 67.7 %
+ 70.3 %
+ 32.2 %
+ 21.3 %
+ 15.2 %
From 15/11/2013
To 27/03/2024
Calendar Year Performance 2023
+ 2.3 %
- 7.7 %
+ 10.0 %
+ 16.7 %
+ 5.1 %
+ 0.3 %
+ 7.4 %
+ 13.6 %
- 5.7 %
+ 0.7 %
Net Asset Value
167.7 €
Asset Under Management
579 M €
Market
European market
SFDR - Fund Classification

Article

8
Data as of:  27 Mar 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 Long-Short European Equities 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 Feb 2024.
Fund management team
[Management Team] [Author] Heininger Malte

Malte Heininger

Fund Manager

Market environment

February was all about momentum with equities and the dollar up, and bonds and commodities down. On equity markets, Japan surpassed the United States, while Europe and China rallied strongly. Large caps outperformed small and mid caps, and the UK market underperformed. In style terms, growth beat value, and cyclical beat defensive. The Q4 reporting season, which continued in February, was the main driver of movement in individual and sector share prices. The best performing sectors in Europe were automotive, consumer goods, services, construction, travel & leisure, and technology, while real estate, basic resources and utilities lagged behind. From a macroeconomic perspective, the dominant theme of the month was the prospect of interest rate cuts being put back from March to June, after data published at the start of the month pointed to higher inflation. However, the market seems to have priced this in, as it coincided with marginally stronger activity and underlying economic data. In key scenario terms, ad hoc data, business comments and announcements further added to the markets’ excitement about the potential for AI. These included a very strong quarterly report and forward guidance from NVIDIA, the AI leader, which fuelled the ongoing technology and semiconductor rally.

Performance commentary

In February, the fund posted a positive performance, driven by our Long book. On the Long side, our strong performance can be divided into four buckets: - On the Technology side, the Magnificent 7 continued to report very strong earnings. During the month, Nvidia was up +28%, Meta +25% and Amazon +14%. In Europe, both ASML and SAP also reported strong earnings. Within our Core Long portfolio, we had positions in these five stocks and the strength of these earnings had a broader impact on other positions like Nova or SK Hynix, where we built strong convictions for the last few months. The Technology sector contributed for more than +500bps of P&L. - Prada, one of our largest positions, had a strong recovery and a +112bps contribution. In a tough luxury backdrop, Richemont’s results earlier in the month provided a positive read which helped Prada’s stock price recovery. - Adyen reported strong revenue growth at 26% and a significant beat on margins. We had a large position ahead of the results, which provided a strong contribution of +130bps to our returns. - Mercedes reported a solid margin guidance and additional share buybacks. We had implemented the position through single stock and call options, which contributed +77bps of P&L. On the Short side, we had a strong contribution from ASM-Osram, as the stock went down 35%, after the cancellation of an already delayed micro-LED project.

Outlook strategy

The net exposure of the strategy rose to close to 50% and 35% beta adjusted; while our gross exposure also rose to close to 220%. As fundamentals are back at driving stock prices, we continued to reinforce our convictions on both the long and short side and our portfolio is back to a normal level of convictions. On the long side of the book, our portfolio in our Core Long book has been stable with strong convictions in Prada in the Luxury sector, Daimler in the Automotive space, IMI in the Chemicals space and several positions in the Technology sector like ASML, Hynix or SAP; as well as some defensive positions like Novo Nordisk and Deutsche Telekom. On the short side, we continue to find many new names in the Consumer, Industrials and Healthcare spaces with poor balance sheets and deteriorating fundamentals, bringing tightened margins and profit warnings. We have also had some strong contributions from positions in our aggressive accounting bucket, with Grifols for example. Overall, we keep strong convictions in our Core Long book and have sized up these positions accordingly. We feel the current environment is quite conducive to our conviction-led portfolio.

Performance Overview

Data as of:  27 Mar 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™ :  © 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.Carmignac Gestion Luxembourg SA in its capacity as the Management Company for Carmignac Portfolio, has delegated the investment management of this Sub-Fund to White Creek Capital LLP (Registered in England and Wales with number OCC447169) from 2nd May 2024. White Creek Capital LLP is authorised and regulated by the Financial Conduct Authority with FRN:998349. The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.
Source: Carmignac at 28/03/2024

Carmignac Portfolio Long-Short European Equities Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  29 Feb 2024.
Europe EUR47.4 %
Other countries17.2 %
North America16.8 %
Europe ex-EUR7.3 %
Equity Basket Derivatives-
Index Derivatives-35.0 %
Total % of alternative53.6 %
Europe EUR47.4 %
deGermany
20.0 %
nlNetherlands
11.4 %
itItaly
8.5 %
frFrance
6.5 %
ieIreland
2.5 %
beBelgium
1.5 %
esSpain
-0.3 %
Luxembourg
-0.3 %
fiFinland
-2.3 %

Key figures

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

Exposure Data

Data as of:  29 Feb 2024.
Net Equity Exposure53.6 %
Beta0.0 %
Sortino Ratio+5.8
Number of Holdings44

The strategy in a nutshell

Discover the Fund’s main features and benefits through the words of the Fund Manager.
Fund Management Team
[Management Team] [Author] Heininger Malte

Malte Heininger

Fund Manager
We strive to build a high-conviction portfolio of long and short positions, based on a thorough fundamental company analysis to identify the best opportunities in Europe.
[Management Team] [Author] Heininger Malte

Malte Heininger

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.
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.