Alternative strategies

Carmignac Portfolio Merger Arbitrage

Luxembourg SICAV sub-fundGlobal marketArticle 8
Share Class

LU2585800795

A defensive strategy focusing on merger arbitrage opportunities
  • A defensive merger arbitrage strategy that aims to provide better than money market returns, with limited correlation to equity markets.
  • An alternative strategy with a socially responsible investment approach, focusing on officially announced M&A deals in the developed markets.
Key documents
Monthly Factsheet (including ESG data)KID
Risk Indicator
2/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 4.9 %
0.0 %
0.0 %
0.0 %
+ 3.5 %
From 14/04/2023
To 19/09/2024
Calendar Year Performance 2023
-
-
-
-
-
-
-
-
-
+ 2.5 %
Net Asset Value
104.93 €
Asset Under Management
196 M €
Market
Global market
SFDR - Fund Classification

Article

8
Data as of:  19 Sep 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.
Alternative strategiesCarmignac Portfolio Merger Arbitrage
Alternative strategiesCarmignac Portfolio Merger Arbitrage
Share Class

LU2585800795

Overview

Characteristics & Risks

Performance

Portfolio

ESG

Documents

Carmignac Portfolio Merger Arbitrage 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:  30 Aug 2024.
Fund management team

Market environment

  • The sell-off seen on the equities markets at the start of the month finally paid off for the Merger Arbitrage strategy, as shown by the HFRX Merger Arbitrage index, which posted a monthly performance of +0.44%.
  • The phase of tightening Merger Arbitrage spreads that began at the beginning of July continued during the month with the finalisation of deals such as Cerevel Therapeutics in the US, L'Occitane International in Hong Kong and Redrow in the UK.
  • Some good news: Network International finally obtained all the necessary authorisations to close its acquisition by Brookfield, and Europe gave the go-ahead for Hewlett Packard's takeover of Juniper.
  • No deal failures to report
  • 26 new deals were announced this month for a total of $81bn, slightly down on the same period last year
  • While M&A activity is slowing down a little in the US ahead of the elections, it remains buoyant in Europe and Asia (particularly Japan). We are also seeing the gradual return of private equity funds, which accounted for almost 25% of deals announced during the month.
  • Finally, we should mention a good deal announced in the US: the acquisition of Kellanova, the breakfast cereal manufacturer, by Mars for a total of $35 billion.

Performance commentary

  • The fund had a positive performance over the month.
  • Main positive contributors to performance were: Ansys, Catalent and Juniper.
  • Main negative contributors to performance were: Hess, Nuvei and Shinko Electric.

Outlook strategy

  • The fund's investment rate was 32%, up on the previous month.
  • With 56 positions in the portfolio, diversification remains satisfactory.
  • 2024 should see a recovery in 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 changes to stock market regulations in Japan.
  • The risk premium of the Merger Arbitrage strategy currently offers investors returns that are still attractive, especially in an environment where deal failure rates remain low.

Performance Overview

Data as of:  19 Sep 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.
Source: Carmignac at 20/09/2024

Carmignac Portfolio Merger Arbitrage Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  30 Aug 2024.
North America14.4 %
Europe ex-EUR4.3 %
Others3.7 %
Europe EUR0.8 %
Total % of alternative23.2 %
North America14.4 %
usUSA
11.7 %
caCanada
2.7 %
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:  30 Aug 2024.
Net Equity Exposure23.2 %
Beta0.0 %
Sortino Ratio-0.3
Number of Holdings46

The strategy in a nutshell

Discover the Fund’s main feature and benefits through the words of the Fund Managers.
Fund Management Team
Our approach is based on rigorous selection of the Merger & Acquisition transactions, included in the portfolio, careful sizing of these positions and, lastly, diversification.

Fabienne Cretin-Fumeron

Fund Manager
View Fund's characteristics
View characteristics and risks
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.