Alternative strategies

Carmignac Absolute Return Europe

FCPEuropean marketArticle 8PEA Elegible
Share Class

FR0010149179

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
+ 135.2 %
+ 39.7 %
+ 16.0 %
+ 3.4 %
+ 6.7 %
From 02/01/2003
To 16/04/2024
Calendar Year Performance 2023
+ 2.5 %
- 8.0 %
+ 8.9 %
+ 14.6 %
+ 4.4 %
- 1.3 %
+ 5.2 %
+ 12.6 %
- 6.4 %
-
Net Asset Value
424.9 €
Asset Under Management
223 M €
Market
European market
SFDR - Fund Classification

Article

8
Data as of:  16 Apr 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:  29 Mar 2024.
Fund management team

Johan Fredriksson

Fund Manager

Dean Smith

Fund Manager

Market environment

March was again full of risk-taking in various asset classes, with equities, bonds, commodities (barring iron ore) and the dollar all up. For equities, Europe beat the United States, developed markets outperformed emerging markets, and yields on large and small/mid caps were largely equal, reflecting an expansion of the global market since the beginning of the year. In style terms, value beat growth, cyclical beat defensive, momentum stayed the same, and the most shorted names performed in line with the market. In Europe, rotation kicked in with the top performing sectors being banking, real estate, chemicals and energy. With the exception of banking, all of these were in the bottom half of the performance table for February. Bringing up the rear were travel & leisure, consumer goods & services, and technology, which were all among the previous month’s winners.

Performance commentary

The Fund delivered a positive return. Our long book returned +3.8%, which was partially offset by small losses of 1.2% on our short book and 1% on our futures and options hedges, which are used to manage the portfolio’s beta and overall risk exposure. At a sector level, the biggest positive contributions came from technology, financials and healthcare. Across the portfolio as a whole, all sectors had a positive impact with the exception of communication services, which cost us 23 basis points. From individual equities, the top contributors were two computer chip manufacturers that we added to the portfolio in February, one of them because of its profits and the other because orders were much higher than expected. In the financial sector, retail banks made a very big contribution, with Unicredit leading the pack once again after revising its earnings upwards, and announcing a large share buyback. In healthcare, our stocks with exposure to GLP1 and life sciences both performed solidly and completed acquisitions to increase their production capacity, which will keep growth rates above average. The month’s biggest losers included a European telecom company that posted disappointing FCF forecasts, a clothes retailer that had to backtrack on some optimistic sales forecasts, and a database company whose management projections for 2024 fell short of the market’s expectations. We upscaled our portfolio’s positions throughout the month, taking gross exposure to around 135% as opposed to 125% in February.

Outlook strategy

Early April should be relatively quiet in terms of corporate communications, and the markets will therefore focus on the macroeconomy, mounting political tension, the Middle East and comments by the Fed Chair. After a decent Q1 for equities and risky assets in general, this will be a kind of test to see whether the market can keep going. Corporate earnings will come back into the equation later in the month. The market is starting to think that business will pick up around the world, with recent PMIs showing a continuous improvement to climb above the 50 mark, and will be keeping a close eye on profits to see whether they can follow this recovery. This will probably determine whether sector rotation gathers pace. We think it is too soon to be sure, even if the first signs are there, but it is at the forefront of our mind. The spotlight is also back on China, where PMIs have also started to show signs of improvement. Given that most investments are still very narrowly exposed to just a few sectors such as technology and quality stocks, we are already starting to consider how we could keep broadening our exposure to achieve a more balanced portfolio.

Performance Overview

Data as of:  16 Apr 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.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 17/04/2024

Carmignac Absolute Return Europe Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  28 Mar 2024.
Europe EUR35.3 %
North America13.9 %
Europe ex-EUR9.0 %
Other countries2.3 %
Index Derivatives-31.3 %
Total % of alternative29.2 %
Europe EUR35.3 %
deGermany
11.6 %
nlNetherlands
6.4 %
itItaly
5.2 %
ieIreland
5.1 %
frFrance
4.6 %
grGreece
1.6 %
beBelgium
0.4 %
fiFinland
0.3 %
esSpain
0.1 %

Key figures

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

Exposure Data

Data as of:  28 Mar 2024.
Net Equity Exposure28.8 %
Beta+0.1 %
Sortino Ratio+3.9
Number of Holdings59

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.