Key Takeaways
- • Longchamp Patrimoine Fund has achieved The Hedge Fund Journal's UCITS Hedge award for best performing fund in the fund of funds category over the 10-year period ending December 2024, marking a decade of consistent risk-adjusted returns since its September 2014 launch.
- • The fund delivered double-digit returns in three years (2019, 2021, 2023) while experiencing only low single-digit losses in three down years (2018, 2020, 2022), demonstrating positive return skew and downside resilience well within statistical risk expectations.
- • Portfolio construction blends fund investments (typically 50% allocation) with direct investments in structured products and other securities, providing flexibility and control; non-call structured products deep in-the-money have contributed to downside protection while accumulating coupons over time.
- • The fund evolved from an all-weather wealth management mandate with a cash +1.085% return target at inception to a higher-conviction strategy targeting high single-digit returns, reflecting strategic repositioning under CIO David Armstrong, who founded Longchamp Asset Management in 2013.
- • Recent performance metrics show 3-year annualized returns of 12.92%–14.79%, 5-year returns of 10.35%–11.64%, and 1-year returns of 16.85%–20.33% across share classes, with 10-year annualized performance of approximately 6.56%.
Summary
Longchamp Patrimoine Fund has marked its tenth anniversary with recognition as one of Europe's top-performing hedge fund vehicles. The UCITS-regulated fund of funds strategy, managed by Sanso Longchamp AM, received The Hedge Fund Journal's UCITS Hedge award for best performing fund in the fund of funds category over the decade through December 2024. The fund also earned the same award previously for the 5-year period ending December 2019, underscoring consistent alpha generation across multiple measurement horizons.
Since its launch in September 2014 under the original name Longchamp Absolute Return, the strategy has demonstrated a distinctive positive return skew. The fund generated double-digit returns in 2019, 2021, and 2023—years that substantially exceeded initial targets and were driven by strong market conditions. Critically, drawdown years (2018, 2020, 2022) resulted in only low single-digit losses, well within statistical risk parameters. According to David Armstrong, Managing Director and Chief Investment Officer, mark-to-market losses on structured products during downturns were subsequently recovered, while the portfolio's non-call structured products—positioned deep in-the-money and therefore less sensitive to market sell-offs—cushioned volatility while accumulating coupons over extended holding periods.
The fund's portfolio construction balances fund investments, typically representing approximately 50% of allocation, with direct investments that provide enhanced flexibility and control. This hybrid approach has allowed managers to exploit market dislocations while maintaining downside protection through careful positioning in structured credit and derivative overlays. The strategy evolved from its inception as an all-weather wealth management product with a conservative cash +1.085% return target to a higher-conviction mandate targeting high single-digit annual returns, reflecting confidence in active management and opportunistic positioning.
Recent performance metrics reflect sustained competitiveness in institutional allocations. Three-year annualized returns range from 12.92% to 14.79% depending on share class, five-year returns span 10.35% to 11.64%, and one-year returns reached 16.85% to 20.33%. The fund name—Patrimoine, French for heritage—encapsulates the investment objective to preserve and grow capital over multi-decade horizons, a positioning particularly relevant for family offices and institutional investors seeking steady, low-correlation returns in diversified alternative strategies.
Since its launch in September 2014 under the original name Longchamp Absolute Return, the strategy has demonstrated a distinctive positive return skew. The fund generated double-digit returns in 2019, 2021, and 2023—years that substantially exceeded initial targets and were driven by strong market conditions. Critically, drawdown years (2018, 2020, 2022) resulted in only low single-digit losses, well within statistical risk parameters. According to David Armstrong, Managing Director and Chief Investment Officer, mark-to-market losses on structured products during downturns were subsequently recovered, while the portfolio's non-call structured products—positioned deep in-the-money and therefore less sensitive to market sell-offs—cushioned volatility while accumulating coupons over extended holding periods.
The fund's portfolio construction balances fund investments, typically representing approximately 50% of allocation, with direct investments that provide enhanced flexibility and control. This hybrid approach has allowed managers to exploit market dislocations while maintaining downside protection through careful positioning in structured credit and derivative overlays. The strategy evolved from its inception as an all-weather wealth management product with a conservative cash +1.085% return target to a higher-conviction mandate targeting high single-digit annual returns, reflecting confidence in active management and opportunistic positioning.
Recent performance metrics reflect sustained competitiveness in institutional allocations. Three-year annualized returns range from 12.92% to 14.79% depending on share class, five-year returns span 10.35% to 11.64%, and one-year returns reached 16.85% to 20.33%. The fund name—Patrimoine, French for heritage—encapsulates the investment objective to preserve and grow capital over multi-decade horizons, a positioning particularly relevant for family offices and institutional investors seeking steady, low-correlation returns in diversified alternative strategies.
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