Alternative strategies

Carmignac Portfolio Long-Short European Equities

Luxembourg SICAV sub-fundEuropean marketArticle 8
Share Class

LU0992627371

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 FactsheetKID
Risk Indicator
3/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 60.3 %
+ 55.3 %
+ 32.8 %
+ 8.5 %
+ 15.9 %
From 15/11/2013
To 29/08/2024
Calendar Year Performance 2023
+ 2.2 %
- 8.4 %
+ 9.4 %
+ 16.5 %
+ 4.9 %
- 0.2 %
+ 7.1 %
+ 13.3 %
- 6.2 %
- 1.4 %
Net Asset Value
160.33 CHF
Asset Under Management
528 M €
Market
European market
SFDR - Fund Classification

Article

8
Data as of:  29 Aug 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor).
Alternative strategiesCarmignac Portfolio Long-Short European Equities
Alternative strategiesCarmignac Portfolio Long-Short European Equities
Share Class

LU0992627371

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:  31 Jul 2024.

Market environment

  • July was marked by a significant market rotation and de-grossing event. The Russell vs S&P outperformance was one of the largest in 25 years.
  • This savage factor/theme/index rotation was driven by weak macro data and AI/Tech earnings, as we shifted from a Goldilocks narrative to one characterized as a Growth Scare with investors beginning to adopt a recession playbook.
  • Tech stocks were impacted by disappointing earnings reports from Alphabet.
  • Notably, geopolitical uncertainty (with reports that the US might impose new restrictions on semiconductor equipment exports to China) and interest rate cut expectations.
  • Companies worldwide have been lowering full-year sales and profit guidance as higher interest rates and weakness in China's economy hurt global consumer sentiment.
  • As this year progressed, pressures on the consumer, and particularly the lower-income households, have deepened and broadened.
  • During this earnings season, we are also noticing a large amount of profit warnings from cyclical companies like Airbus, Volkswagen, Lufthansa or Ryanair.

Performance commentary

  • In July, the fund posted a negative performance, driven by both our Long and Short books.
  • While we had a good hit ratio on the earnings this month, the rotation brought a difficult backdrop to our Core Long positions and some of the low quality stocks on the Short side.
  • On the Long side, our positions in the Trading Longs portfolio had a positive contribution to performance but our Consumer and Tech positions in the Core Long portfolio suffered from the market rotation.
  • On the Short side, we had strong contributions from several stocks which profit warned or lowered their guidance like Dassault Systemes, Lululemon or Siemens Healthineers.
  • Our short exposure to the housebuilder theme and cyclical stocks penalized our performance.

Outlook strategy

  • The net exposure of the strategy stayed low throughout the month; and our gross exposure was lowered mid-July to below 200%.
  • During the rotation, we reduced our semi-conductor exposure.
  • We kept our two top convictions in the space: SK Hynix and Nova. They are dominant in the tightly supplied HBM market, as the demand for AI servers from datacenters drives the growth in HBM/DDR5 and enterprise SSDs.
  • On the long side of the book, we reduced the exposure of our Core Long book and we keep our strong convictions in Prada in the Luxury sector.
  • We also keep our strong convictions in several positions in the Technology sector like Nova Limited, SK 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 are staying cautious as we expect the current volatile environment to continue throughout August.

Performance Overview

Data as of:  29 Aug 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.
Source: Carmignac at 31/08/2024

Carmignac Portfolio Long-Short European Equities Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  31 Jul 2024.
Europe EUR28.3 %
Europe ex-EUR9.4 %
Others7.1 %
North America-2.1 %
Index Derivatives-8.6 %
Equity Basket Derivatives-16.0 %
Total % of alternative18.2 %
Europe EUR28.3 %
deGermany
21.4 %
itItaly
7.6 %
nlNetherlands
3.8 %
beBelgium
0.7 %
esSpain
0.7 %
Luxembourg
-0.3 %
atAustria
-1.1 %
frFrance
-1.8 %
fiFinland
-2.8 %
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:  31 Jul 2024.
Net Equity Exposure18.1 %
Beta-0.1 %
Sortino Ratio+1.7
Number of Holdings25

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.