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Alternative strategies

Carmignac Absolute Return Europe

French mutual fund (FCP)European marketArticle 8
Share Class

FR001400JG56

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%).
  • Strong discipline of portfolio risk management to contain the downside.
Key documents
Monthly FactsheetKID
Risk Indicator

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Lowest risk Highest risk
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 4.5 %
-
-
+ 4.0 %
+ 0.4 %
From 31/08/2023
To 05/11/2026
Calendar Year Performance 2025
-
-
-
-
-
-
-
+ 2.1 %
+ 3.7 %
+ 0.2 %
Net Asset Value
€104.49
Asset Under Management
125 M €
Net Equity Exposure30/09/2026
19.2%
SFDR - Fund Classification

Article

8
Data as of:  Nov 5, 2026.
Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). The Fund presents a risk of loss of capital.
The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.
Sustainable Finance Disclosure Regulation (SFDR) 2019/2088. The SFDR classification of the Funds may change over time.

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
Our objective is to provide long-term absolute capital growth thanks to our dynamic and opportunistic take on European equities.

Johan FREDRIKSSON

Fund Manager
View Fund's characteristics

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:  Oct 30, 2026.
Fund management team

Johan FREDRIKSSON

Fund Manager

Market environment

  • European equities rebounded in October, with the STOXX 600 gaining around 1.9%, although beneath the surface market leadership became very fragile. As expected, the Fed kept rates unchanged at 3.75–4.00%, but two dissenters favouring a hike reinforced the higher-for-longer message.
  • Meanwhile, the real challenge, pain for investors during the month, was the very aggressive sector dispersion. The market had violent moves, if daily, every week Banks reversed sharply, falling more than 10% despite strong earnings, as investors took profits after a strong run.
  • Technology also lost momentum towards month-end as enthusiasm around AI gave way to concerns over elevated valuations, hyperscaler capex, fund raising for DC roll out and monetisation.
  • Healthcare and other defensives benefited from the rotation, while Energy remained supported by elevated oil prices.
  • Overall, October saw a clear shift away from crowded momentum trades towards earnings visibility, quality and defensives.
  • Nervousness increased into month-end ahead of the US midterms, with political uncertainty adding to existing concerns around AI spending and regulation.

Performance commentary

  • The fund generated a negative return during the month.
  • In terms of portfolio contribution, four sectors stood out in October: Tech, Industrials and Financials detracted our performance, while we had positive contribution from Healthcare, Materials and Consumer Staples.
  • Worth noting that in consumer discretionary, we saw a short covering, thus the short leg of sector pretty much offset the longs.
  • The negative detracting sector was Materials, with Chemical shorts position contributed negatively as shares rallied with move up in oil.
  • Key stock selection winners included long positions in Fresenius (strong growth outlook), UCB (benefiting from a raised full year guidance) and Galderma (after strong results).
  • The main detractors were Siltronic, impacted by the AI sell-off and Nexans which suffered due to sector rotation.

Outlook strategy

  • We enter November with a more cautious outlook as the unwind in AI and Technology may gather further momentum.
  • Concerns around stretched valuations in part, but more the risk around rising capex and the thus far lack of visibility of returns on AI investment are challenging one of the market’s most crowded trades.
  • The key question is whether this remains a concentrated Tech correction or develops into a broader de-risking event.
  • Geopolitical risk also remains elevated, particularly around Iran, with the potential for Trump to re-engage more aggressively now the midterms are behind him. Any renewed escalation would put further pressure on oil, inflation and yields at a time when the Fed remains constrained.
  • Against this backdrop, we expect volatility to remain elevated and favour selective quality, defensives and companies with strong free cash flow and earnings visibility.
  • The rotation away from US mega-cap Technology should also create opportunities in Europe and other overlooked areas of the market.

Performance Overview

Data as of:  Nov 5, 2026.
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). The Fund presents a risk of loss of capital.
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 08/11/2026

Carmignac Absolute Return Europe Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  Sep 30, 2026.
Europe EUR18.1%
Europe ex-EUR10.9%
North America5.1%
Others1.8%
Index Derivatives-16.7%
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Key figures

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

Exposure Data

Data as of:  Sep 30, 2026.
Net Equity Exposure19.2%
Issuer equity derivative short37
Issuer equity derivative long58
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All analysis
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.
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.