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
-
- 0.2 %
+ 8.1 %
+ 14.8 %
+ 3.4 %
- 1.1 %
+ 6.3 %
+ 12.4 %
- 7.0 %
- 0.7 %
Net Asset Value
160.76 €
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).
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.
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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Market environment