Alternative strategies
Carmignac Portfolio Merger Arbitrage
Luxembourg SICAV sub-fundGlobal marketArticle 8Share Class
LU2585800878
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
Risk Indicator
2/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
Cumulative Performance 10 YearsCumulative Performance 5 YearsCumulative Performance 3 YearsCumulative Performance 12 Months
+ 5.6 %
0.0 %
0.0 %
0.0 %
+ 3.6 %
To 23/10/2024
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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+ 2.6 %
Net Asset Value
105.64 €
Asset Under Management
54 M €
Market
Global market
SFDR - Fund Classification
Article
8
Data as of: 23 Oct 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.
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 Sep 2024.Fund management team
Fabienne Cretin-Fumeron
Fund Manager
Stéphane Dieudonné
Fund Manager
Performance commentary
We were not invested in United State Steel, which meant that we were relatively unaffected by the renewed volatility seen in September.
The fund posted a positive performance over the month
Main positive contributors to performance were: Capri, Silk Road Medical and Resurs Holding
Main negative contributors to performance were: Hess, Shinko Electric Industries and Albertsons
Outlook strategy
- The fund's investment rate was 39%, up on the previous month.
- With 54 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: 23 Oct 2024.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 24/10/2024
Carmignac Portfolio Merger Arbitrage Portfolio overview
Below is an overview of the composition of the portfolio.Geographical Breakdown
Data as of: 30 Sep 2024.| North America | 18.4 % |
| Europe ex-EUR | 5.6 % |
| Others | 3.3 % |
| Europe EUR | 3.3 % |
| Total % of alternative | 30.6 % |
North America18.4 %
 USA | 14.8 % |
 Canada | 3.6 % |
Key figures
Below are some key figures to help you understand the Fund's management and positioning.Exposure Data
Data as of: 30 Sep 2024.Net Equity Exposure30.6 %
Beta0.0 %
Sortino Ratio-0.9
Number of Holdings44
The strategy in a nutshell
Discover the Fund’s main feature and benefits through the words of the Fund Managers.Fund Management Team
Fabienne Cretin-Fumeron
Fund Manager
Stéphane Dieudonné
Fund Manager
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
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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.
Market environment
After a few months of relative calm, September was marked by a return to volatility in merger arbitrage spreads.
The US administration's delays in the acquisition of United State Steel by Nippon Steels led to sharp swings in the US steelmaker's shares: down 23% at the start of the month, followed by a rebound of almost 20% at the end of September!
As usual in the wake of such an event, there was a move to reduce the risk in portfolios, which led to a widening of certain merger arbitrage spreads. The HFRX Merger Arbitrage index fell by 0.55% over the month.
In addition, a number of deals came to an end, leading to a tightening of spreads: These include Network International, Resurs Holding, Silk Road Medical, Walkme and Copperleaf Technologies.
There was also good news for two deals that were in2nd Request: SouthWestern Energy and Hess obtained FTC approval.
1 deal failure to mention: in the US real estate sector, McGrath RentCorp and WillScot Holdings mutually terminated their merger plans.
As usual in the run-up to the US elections, the flow of new deals seems to be slowing, with only 22 announced this month (vs. 26 the previous month) for a total of $78bn.
This slowdown is noticeable in the US, but M&A activity remains buoyant in Europe and Asia, with annual volume growth of 13% and 75% respectively.
The return of private equity funds seems to be confirmed: financial operators now account for more than a third of acquirers.