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
Monthly FactsheetKIID
Risk Indicator
4/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 73.2 %
+ 67.6 %
+ 39.0 %
+ 18.1 %
+ 19.5 %
From 15/11/2013
To 16/07/2024
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
173.22 €
Asset Under Management
£
Market
European market
SFDR - Fund Classification

Article

8
Data as of:  16 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.
Alternative strategiesCarmignac Portfolio Long-Short European Equities
Alternative strategiesCarmignac Portfolio Long-Short European Equities
Share Class

LU0992627298

Overview

Characteristics & Risks

Performance

Portfolio

ESG

Documents

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:  28 Jun 2024.

Market environment

  • Global stock markets reached new highs in June, with the largest caps driving indices.
  • The Magnificent 7 again led the way, semiconductors and AI dominated, consumer attitudes shifted, and macroeconomic data was weak.
  • Investors embarked on the first half of 2024 with optimism, in the belief that employment was stable, inflation was starting to fall, commodity costs were favourable, interest rates could be lowered, and holiday spending was firm.
  • Consumer spending trends reversed in June due to mounting pressures on consumers, customs duties, and greater focus on shipping issues.
  • The ISM services index dropped nearly 4 points to its lowest level since Covid, while the Atlanta Fed revised its GDP forecast down from 3% to 1.5% in the second half of the month.
  • Equity dispersion remains very high with some attractive weak spots to exploit.

Performance commentary

  • In June, the fund posted a positive performance, driven by both our Core Longs and our Alpha Shorts.
  • Overall, the surge in Tech stocks was driven by robust earnings, AI optimism, and the ongoing digital transformation.
  • Our semi-conductor positions performed particularly well, as the demand for AI servers from datacenters drives the growth in HBM/DDR5 and enterprise SSDs amidst a tight leading-edge supply environment.
  • We continue to keep a strong exposure to that theme as we remain at the early stages of the memory cycle up-cycle.
  • On the Short side, we had strong contributions from several stocks which profit warned.
  • Our largest short position was Nike. As we expected, they experienced a meaningful deceleration in the lifestyle category and muted wholesale order books following several management missteps in their strategic plan.
  • Our aggressive accounting Shorts also performed particularly well as revenue and margin misses get particularly penalized by the market.

Outlook strategy

  • The net exposure of the strategy came down to close to 10%; and our gross exposure stayed stable above 200%.
  • 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 and several positions in the Technology sector like Nova Limited, 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 Technology spaces with poor balance sheets and deteriorating fundamentals, bringing tightened margins and profit warnings.
  • 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:  16 Jul 2024.
View Performance in detail
​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.From 1 January 2022, the Fund’s investment objective is an absolute performance objective.The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.
Source: Carmignac at 17/07/2024

Carmignac Portfolio Long-Short European Equities Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  28 Jun 2024.
Europe EUR31.7 %
Other countries22.6 %
Europe ex-EUR10.2 %
North America7.5 %
Equity Basket Derivatives-26.1 %
Index Derivatives-27.7 %
Total % of alternative18.1 %
Europe EUR31.7 %
deGermany
20.1 %
itItaly
7.3 %
nlNetherlands
6.3 %
esSpain
1.9 %
Luxembourg
-0.2 %
frFrance
-0.3 %
atAustria
-1.2 %
fiFinland
-2.3 %
View Portfolio allocation

Key figures

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

Exposure Data

Data as of:  28 Jun 2024.
Net Equity Exposure10.6 %
Beta+0.1 %
Sortino Ratio+4.0
Number of Holdings26

The strategy in a nutshell

Discover the Fund’s main features and benefits through the words of the Fund Manager.0
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

Delegated Fund Manager, White Creek Capital LLP
View Fund's characteristics
View characteristics and risks
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.