Alternative strategies

Carmignac Portfolio Merger Arbitrage Plus

Luxembourg SICAV sub-fundGlobal marketArticle 8
Share Class

LU2601234169

An active absolute return strategy focusing on merger arbitrage opportunities
  • An active merger arbitrage strategy that aims to provide positive absolute 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)KIID
Risk Indicator
4/7
Recommended Minimum Investment Horizon
3 years
Cumulative Performance since launch
+ 7.6 %
0.0 %
0.0 %
0.0 %
+ 4.8 %
From 06/10/2024
To 06/10/2024
Calendar Year Performance 2023
-
-
-
-
-
-
-
-
-
+ 3.8 %
Net Asset Value
107.57 £
Asset Under Management
148 M €
Market
Global market
SFDR - Fund Classification

Article

8
Data as of:  6 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.
Alternative strategiesCarmignac Portfolio Merger Arbitrage Plus
Alternative strategiesCarmignac Portfolio Merger Arbitrage Plus
Share Class

LU2601234169

Overview

Characteristics & Risks

Performance

Portfolio

ESG

Documents

Carmignac Portfolio Merger Arbitrage Plus 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 128%, up on the previous month.
  • With 57 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:  3 Oct 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 06/10/2024

Carmignac Portfolio Merger Arbitrage Plus Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  30 Sep 2024.
North America65.2 %
Europe ex-EUR21.0 %
Europe EUR16.6 %
Others10.0 %
Total % of alternative112.7 %
North America65.2 %
usUSA
53.8 %
caCanada
11.4 %
View Portfolio allocation

Key figures

Below are the key figures for the Fund, which will give you a clearer idea of the Fund's management and equity positioning.

Exposure Data

Data as of:  30 Sep 2024.
Equity Investment Weight81.0 %
Net Equity Exposure112.7 %
Number of Equity Issuers35
Active Share50.0 %

The strategy in a nutshell

Discover the Fund’s main features and benefits through the words of the Fund Managers.
Fund Management Team
The advantage of Merger Arbitrage strategy is that it carries virtually no market risk. The only associated risk is that of a deal failure. That is why our approach is very cautious on two levels: we’re very selective in choosing the deals and we aim to maintain a highly diversified portfolio.

Stéphane Dieudonné

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