Alternative strategies

Carmignac Portfolio Merger Arbitrage Plus

Share Class


Carmignac Portfolio Merger Arbitrage Plus fund performance

Performance Overview

Data as of:  19 Jun 2024.

Calendar Year Performance (as %)

Calendar Year Performance (as %)

Data as of:  14 Jun 2024.
Carmignac Portfolio Merger Arbitrage Plus - F GBP Hdg Acc
Carmignac Portfolio Merger Arbitrage Plus F GBP Hdg Acc+5.6 %---
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 14/06/2024.

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:  31 May 2024.
Fund+1.7 %-+1.9 %

Calculation : Weekly basis

Source: Carmignac at 31 May 2024.

Comments from the Investment Team

Read the Investment team's analysis below.

Carmignac Portfolio Merger Arbitrage Plus Monthly comments

Data as of:  31 May 2024.
The Investment team

Market Environment

  • May was a difficult month for the strategy, with the HFRX Merger Arbitrage index down 0.8%.

  • This was partly due to the increase in the DS Smith spread amid rumours of an offer for its potential buyer, International Paper, from Brazil’s Suzano.

  • Other spreads also rose in May, though without anything specific to point out: Hess, Ansys and Cerevel Therapeutics

  • A few major deals were completed: Pioneer Natural Resources, SP Plus and MorphoSys

  • It seems the resources freed up are being reallocated to some recently announced smaller deals, on which spread are fairly small.

  • M&A activity is holding up well with 30 new deals announced in May for a total of $114bn. Most of this growth is coming from Europe and Asia.

  • Private Equity funds account for nearly half of all bidders in deals announced during the month.

Performance Commentary

  • The Fund delivered a positive return.

  • The main contributors were: Pioneer Natural Resources, SP Plus and MorphoSys

  • The main hindrances were: Hess, Ansys and Cerevel Therapeutics

  • We had no position on the DS Smith spread when rumours emerged about an offer for its potential buyer. Shortly after, though, we opened a small position when the risk-reward profile looked interesting.

Outlook and Investment Strategy

  • The Fund’s investment rate increased from 98% to 100% given the large number of deals closed in May.

  • With 42 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.