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Alternative strategies

Carmignac Portfolio Merger Arbitrage Plus

Share Class

LU2601234169

Alternative strategiesCarmignac Portfolio Merger Arbitrage Plus
Alternative strategiesCarmignac Portfolio Merger Arbitrage Plus
Share Class

LU2601234169

Overview

Characteristics & Risks

Performance

Portfolio

ESG

Documents

Carmignac Portfolio Merger Arbitrage Plus fund performance

Performance Overview

Data as of:  26 Dec 2024.

Calendar Year Performance (as %)

Calendar Year Performance (as %)

Data as of:  29 Nov 2024.
Carmignac Portfolio Merger Arbitrage Plus - F GBP Hdg Acc
Carmignac Portfolio Merger Arbitrage Plus F GBP Hdg Acc+3.5 %---
Category Average----
Ranking (quartile)----
​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.
Source: Carmignac at 29/11/2024.

Statistics (%)

These measures are used to assess a Fund's risk-adjusted performance. A well-performing Fund should ideally have a solid return (measured by the Sharpe ratio and alpha) relative to its risk (measured by volatility), while being well aligned with market expectations (measured by beta relative to the reference indicator).

Volatility

Data as of:  29 Nov 2024.
Fund+1.8 %-+1.9 %

Calculation : Weekly basis

Source: Carmignac at 29 Nov 2024.

Comments from the Investment Team

Read the Investment team's analysis below.

Carmignac Portfolio Merger Arbitrage Plus Monthly comments

Data as of:  31 Oct 2024.
The Investment team

Market Environment

  • After a few months of relative calm, and in the run-up to the US presidential elections, the 3rd quarter saw a return to volatility in merger arbitrage discounts.
  • The main news of the month was the US court's decision to block Tapestry's acquisition of Capri (Michael Kors, Versace, Jimmy Choo) because of concerns that the merger would weaken competition.
  • While the financial markets were hoping for a decision in favour of the two fashion companies, the ruling was a success for the US competition authority, the FTC, and its head, Lina Khan.
  • Another setback came as a surprise to the merger arbitrage market in Asia with the withdrawal of Sinopharm Common Wealth's bid for minority stakes in China Traditional Chinese Medicine following the failure to obtain the conditions required to initiate the offer.
  • These two setbacks have increased pressure on merger arb spreads in general, but more particularly on deals such as Catalent and Surmodics, which are the subject of an in-depth review by the US administration.
  • The HFRX Merger Arbitrage index fell by 0.97% over the month (-1.87% YTD).
  • Against this volatile backdrop, around twenty deals came to an end and only 16 were announced.
  • The biggest deal announced this month was the acquisition of German chemical company Covestro by Abu Dhabi's state-owned oil company, after several months of rumours. This is the biggest acquisition of a European company by a Gulf country.

Performance Commentary

  • We were not invested in China Traditional Chinese Medicine and were relatively little invested in Capri, which meant that we were relatively less affected by the renewed volatility seen in October.
  • The fund posted a negative performance over the month.
  • Main contributors to performance: Nuvei, Concentric, Aaron's and Neoem.
  • Main detractors from performance: Capri, Catalent, Hess and Discover Financial.

Outlook and Investment Strategy

  • The fund's investment rate is 123%, down on the previous month.
  • With 39 positions in the portfolio, diversification remains satisfactory
  • 2024 marked the resumption of the M&A cycle, driven in particular by falling interest rates, the energy transition affecting many sectors of the economy, the return of private equity funds and the change in stock market regulations in Japan.
  • The risk premium offered by the Merger Arbitrage strategy continues to provide attractive returns for investors, especially in an environment where deal failure rates remain low.

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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.