Calendar Year Performance 2014Calendar Year Performance 2015Calendar Year Performance 2016Calendar Year Performance 2017Calendar Year Performance 2018Calendar Year Performance 2019Calendar Year Performance 2020Calendar Year Performance 2021Calendar Year Performance 2022Calendar Year Performance 2023
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+ 3.1 %
Net Asset Value
105.15 €
Asset Under Management
159 M $
Market
Global market
SFDR - Fund Classification
Article
8
Data as of: 25 Jul 2024.
Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor).
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.
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.
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