Alternative strategies

Carmignac Portfolio Merger Arbitrage Plus

Share Class


Carmignac Portfolio Merger Arbitrage Plus fund performance

Performance Overview

Data as of:  24 Jul 2024.

Calendar Year Performance (as %)

Calendar Year Performance (as %)

Data as of:  28 Jun 2024.
Carmignac Portfolio Merger Arbitrage Plus - F EUR Acc
Carmignac Portfolio Merger Arbitrage Plus F EUR Acc+4.9 %---
Category Average----
Ranking (quartile)----
​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 28/06/2024.

Statistics (%)

These measures are used to assess a Fund's risk-adjusted performance. A well-performing Fund should ideally have a solid return (measured by the Sharpe ratio and alpha) relative to its risk (measured by volatility), while being well aligned with market expectations (measured by beta relative to the reference indicator).


Data as of:  28 Jun 2024.
Fund+1.9 %-+1.9 %

Calculation : Weekly basis

Source: Carmignac at 28 Jun 2024.

Comments from the Investment Team

Read the Investment team's analysis below.

Carmignac Portfolio Merger Arbitrage Plus Monthly comments

Data as of:  28 Jun 2024.
The Investment team

Market Environment

  • June was a highly volatile month for the Merger Arbitrage strategy, with the HFRX Merger Arbitrage index down -0.2% for the month and -3.3% year-to-date.
  • This tension was partly due to significant variations in the discounts of Ansys, DS Smith, Southwestern Energy and Hess amongst others.
  • The closure of two multi-asset funds’ Merger Arbitrage portfolios has likely amplified this volatility.
  • Apart from Shockwave Medical (USD 12 billion), no big deals were completed in June, explaining why other discounts showed a degree of stability.
  • There was one failure to report: the acquisition of Karnov by a private equity group in Sweden, as the acceptance threshold was not met.
  • 30 new deals were announced, as in the previous month, but for a lower total of around USD 60 billion.
  • Growth in M&A activity was mainly driven by the United States this month, with deal sizes averaging some USD 5 billion.

Performance Commentary

  • The Fund delivered a positive return.
  • The main sources of performance were: DS Smith, Catalent and Olink
  • The main drags on performance were: Ansys, Darktrace and MMA Offshore
  • As we wrote last month, we had no position on the DS Smith discount when rumours emerged about Suzano (Brazil) making an offer for its potential buyer, International Paper.
  • However, the small position that we opened soon after proved very profitable when Suzano announced at the end of June that it was withdrawing its bid for International Paper.

Outlook and Investment Strategy

  • The Fund’s investment rate was relatively stable at around 104%.
  • With 45 positions in the portfolio, diversification remains satisfactory.
  • 2024 should see the M&A cycle pick up due to the stabilisation (or even reduction) in interest rates, the energy transition spreading to more sectors of the economy, private equity funds making a return, and Japanese stock markets undergoing regulatory change.
  • The risk premium on the Merger Arbitrage strategy still offers investors some attractive returns, especially at a time when few deals are collapsing.
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.