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Carmignac

From EverybodyWiki Bios & Wiki

Carmignac
ISIN🆔
IndustryFinancial Services
Founded 📆1989 (1989)
Founders 👔Edouard Carmignac Eric Helderlé
Headquarters 🏙️24, Place Vendôme, Paris, France
Area served 🗺️
ServicesAsset management
Members
Number of employees
281
🌐 Websitecarmignac.fr/en
📇 Address
📞 telephone

Carmignac is an independent asset management company, founded in 1989 by Édouard Carmignac and Eric Helderlé and ranking among Europe's leading independent management companies.[1]

History[edit]

Creation and development

On graduating from Columbia University, Édouard Carmignac began his career in 1972 as a financial analyst at Blyth Eastman Dillon in New York. He went on to hold roles including Assistant Director at Banque de la Société Financière Européenne, responsible for the energy and mining sectors, as well as Chief Executive Officer of the stockbroker Hamant-Carmignac. He left Hamant-Carmignac in 1989 to found Carmignac.[2]

In its early years Carmignac developed a concentrated range of UCITS funds in France, accessible to both private and professional investors. Carmignac launched four UCITS funds when it was founded in 1989 (monetary, bond, equity and flexible), predominantly managed by Édouard Carmignac, and the firm progressively expanded its offer.

Since its creation, Carmignac has focused on large independent advisers along with retail and private bank networks. The company has developed distribution networks in core continental European countries, including the United-Kingdom, using its well-established third-party distribution model.[3]

Carmignac is wholly owned by its managers and staff and has always been committed to its independence. This structure allows Carmignac's managers the freedom required to invest according to their own analysis and convictions.[4]

International expansion and the success of 2008

In 1999, Carmignac began its international expansion by opening an office in Luxembourg, allowing the firm to distribute its UCITS funds across Europe. This was followed by the opening of offices in Madrid (2008), Milan (2008), Frankfurt (2011), London (2012),[5] Zurich (2015) [6] and Miami (2016).[7]

In 2003, the company reached one billion euros in assets under management and then exceeded the 10 billion mark at the end of 2006.[8]

During the 2008 financial crisis, Carmignac showed its ability to manage risks. The investment team was able to read into the market inefficiencies to identify the risks to avoid but also the opportunities to seize. Its flagship fund, Carmignac Patrimoine, ended the year in positive territory, while the main stock indexes fell.[9] This performance was followed by two years of very strong inflows, with assets under management reaching 33 billion euros in 2009 and 55 billion euros in 2010, propelling Carmignac amongst the largest independent European management companies.[10]

This ability to manage market risks has become a hallmark of Carmignac's management style, particularly in 2002, 2008 and 2011 [11]. At the beginning of 2011, bank shares were going up, but Carmignac identified an important crisis coming. Because of this, the funds started the year behind, but by the end of the year 2011, it proved to be a smart decision.[12]

Succession planning

In September 2018, David Older, Head of Equity Management since 2017, was appointed sole Portfolio Manager of Carmignac Investissement, the fund created and managed by Edouard Carmignac for nearly 30 years.[13]

In January 2019, Edouard Carmignac announced that he was stepping back from Fund's operational management and that Carmignac Patrimoine would now be fully managed by Rose Ouahba, Head of Fixed Income and David Older, Head of Equities.[14] As CIO of Carmignac, Edouard Carmignac now focuses on the long-term vision and he remains a member of the Strategic Investment Committee. Consisting of the five most senior members of the Investment team, this committee aims to produce long-term market convictions, based on the micro and macro-economic research produced by the analysts for all asset classe.[15]

Main investment strategies

As of 2019, Carmignac manages a concentrated range of 19 investment strategies and 28 UCITS funds covering four key areas: equity strategies, fixed income strategies, mixed strategies and profiled strategies. These strategies aim to manage the complexity of the markets and make it accessible for long term savers.

One of its flagship strategies, Carmignac Patrimoine, is a diversified fund that distinguished itself in 2008, recording an annual performance of + 0.01% as at December 31, 9, while most major stock indexes, such as the CAC 40 and the S&P 500, had lost about 40% of their value because of the subprime crisis.

Other flagship strategies managed by Carmignac include Carmignac Investissement and Carmignac Sécurité. In 2018, Carmignac launched a Patrimoine Europe strategy [16] and soft-closed its long/short European equity strategy.[17] In 2019, Carmignac expanded its credit expertise to investors with the launch of the Unconstrained Credit strategy.[18]

Key people

As of 2019, Carmignac has 281 staff, including 41 analysts and managers.[19]

Édouard Carmignac is Chairman and Chief Investment Officer of Carmignac.

The Heads of teams are David Older, Head of Equities since 2017, Frédéric Leroux, Head of Cross Asset since 2003 and Rose Ouahba, Head of Fixed Income since 2007.[20]

Didier Saint-Georges has been a member of Carmignac's investment committee since 2007. He is also one of the five members of the Strategic Investment Committee, contributing to the generation of long-term market convictions, which are regularly reported by the press.[21][22]

Maxime Carmignac, Edouard Carmignac's daughter, joined the company in 2010 as a portfolio manager and is now General Manager of the Carmignac branch in London. Maxime is a Member of Carmignac's Strategic Development Committee, and she is instrumental in setting up the firm's strategy in Europe and overseas.[23] Maxime has been a member of the Investment Association Board since 2015, and a member of the Diversity Project's steering group since 2016.[24]

Eric Helderlé is co-founder and General Manager of Carmignac Gestion Luxembourg.25

Christophe Péronin is General Manager of Carmignac Gestion Paris since 2018.[25]

References[edit]

  1. "France's Carmignac Gestion opens its London office". www.investmenteurope.net. 2012-04-24. Retrieved 2019-06-06.
  2. "Edouard Carmignac: Executive Profile & Biography - Bloomberg". www.bloomberg.com. Retrieved 2019-06-06.
  3. "Carmignac cements position in UK with OEIC launches". InvestmentWeek.co.uk. 2019-05-16. Retrieved 2019-06-06.
  4. "Carmignac founder: 'Not selling my firm is my obsession'". Money Marketing. 2018-01-24. Retrieved 2019-06-06.
  5. "Carmignac sets sights on the UK". www.investmenteurope.net. 2011-03-09. Retrieved 2019-06-06.
  6. "Carmignac opens Zurich office". www.investmenteurope.net. 2015-04-28. Retrieved 2019-06-06.
  7. "Carmignac launches Miami office with LatAm in sights". Citywire. Retrieved 2019-06-06.
  8. "Edouard Carmignac: Sitting firmly at the helm of a future giant". www.ft.com. 24 May 2009.
  9. "Édouard Carmignac: all-time great or one-hit wonder?". www.citiwireselector.com. 16 September 2014.
  10. Baker, Sophie. "Fast-growing Carmignac moves into London". www.fnlondon.com. Retrieved 2019-06-06.
  11. "Carmignac Adds US-Oriented Global Expertise in Communications, Media, Internet and Information Technology | Funds Society". www.fundssociety.com. Retrieved 2019-06-06.
  12. "Started in France but aiming (slowly) for the world". www.ft.com. 17 March 2012.
  13. "Carmignac steps back: so… who is David Older?". citywireselector.com. 23 January 2019.
  14. "Edouard Carmignac steps down from €14bn Patrimoine fund after 30 years". www.investmentweek.co.uk. 2019-01-23. Retrieved 2019-06-06.
  15. "Edouard Carmignac relinquishes full control of flagship Carmignac fund". euronews. 2019-01-23. Retrieved 2019-06-06.
  16. "Carmignac unveils Europe-focused multi-asset fund". www.investmenteurope.net. 2018-10-23. Retrieved 2019-06-06.
  17. "Exclusive: Carmignac to soft-close €1.2bn long/short fund". Citywire Global. Retrieved 2019-06-06.
  18. "Carmignac launches unconstrained credit UCITS fund". Institutional Asset Manager. 2019-04-10. Retrieved 2019-06-06.
  19. "A leading asset manager in Europe | Carmignac". Carmignac. Retrieved 2019-06-06.
  20. Robinson, David (2019-05-01). "Carmignac boss 'we need more discipline'". Expert Investor Europe. Retrieved 2019-06-06.
  21. Aldrick, Philip (2018-05-01). "Potential collision of monetary problems is a threat to the economy". ISSN 0140-0460. Retrieved 2019-06-06.
  22. "Market corrections mark overdue return to pre-QE investing". www.ft.com. 23 November 2018.
  23. Tester, Test (2013-07-09). "carmignac daughter lead uk charge". Portfolio Adviser. Retrieved 2019-06-06.
  24. "Industry project looks to end lack of diversity". www.ftadviser.com. 20 June 2016.
  25. "Christophe Peronin a pris de nouveau du galon chez Carmignac Gestion". Boursorama (in français). 2018-06-13. Retrieved 2019-06-06.