Key Takeaways
- • Carmignac appointed two experienced long-short equity managers—Johan Fredriksson (joined June 21, 2023) and Dean Smith (joining September 1, 2023)—from TT International to strengthen its alternatives franchise.
- • The incoming managers previously co-managed a European long-short equity strategy at TT International that has delivered top-quartile, risk-adjusted returns since its 2019 launch, including positive performance during the COVID-19 market decline in Q1 2020 and positive returns in 2022.
- • Carmignac is splitting its long-short European equities strategy into two independently managed funds with distinct capacity limits: Malte Heininger retains the Luxembourg SICAV, while Fredriksson and Smith will manage the newly renamed French FCP fund—Carmignac Absolute Return Europe (CARE)—from September 1, 2023.
- • This expansion represents part of Carmignac's broader alternatives push, which included six alternative specialist appointments over the prior year and reflects the firm's strategy to deepen expertise in this reduced-capacity asset class.
Summary
Carmignac has bolstered its alternatives team with the appointment of two long-short equity managers from TT International. Johan Fredriksson joined the Paris-based asset manager on June 21, 2023, while Dean Smith is scheduled to commence employment on September 1, 2023. The two managers arrive with a strong track record: their previous European long-short equity strategy at TT International has generated top-quartile, risk-adjusted returns since its launch in 2019, demonstrating particular resilience during market stress periods.
The pair's investment credentials are substantiated by their performance during two significant market dislocations. During the COVID-19 market crisis in the first quarter of 2020, when European equity markets declined more than 20 percent, their strategy posted top-quartile positive performance. In 2022, a year marked by significant market headwinds across asset classes, they again delivered positive and top-quartile returns—a notable achievement given the challenging environment faced by equity-focused strategies.
To accommodate the expanded team and manage capacity constraints in the long-short equity space, Carmignac is restructuring its European long-short equities offering. The firm is dividing its existing strategy—previously comprising a Luxembourg SICAV and French FCP fund—into two separate, independently managed vehicles with distinct capacity limits. Malte Heininger will continue to manage the Luxembourg SICAV fund unchanged, while Fredriksson and Smith will assume management responsibility for the French FCP fund effective September 1, 2023. The FCP fund will be renamed Carmignac Absolute Return Europe (CARE) to reflect the new management structure.
This appointment underscores Carmignac's broader commitment to expanding its alternatives division. The firm has appointed six alternative specialists over the preceding year and continues to strengthen its fund management capabilities across alternative strategies. The expansion reflects both the growing institutional demand for reduced-capacity long-short vehicles and Carmignac's strategic positioning to attract experienced portfolio managers from established competitors.
The pair's investment credentials are substantiated by their performance during two significant market dislocations. During the COVID-19 market crisis in the first quarter of 2020, when European equity markets declined more than 20 percent, their strategy posted top-quartile positive performance. In 2022, a year marked by significant market headwinds across asset classes, they again delivered positive and top-quartile returns—a notable achievement given the challenging environment faced by equity-focused strategies.
To accommodate the expanded team and manage capacity constraints in the long-short equity space, Carmignac is restructuring its European long-short equities offering. The firm is dividing its existing strategy—previously comprising a Luxembourg SICAV and French FCP fund—into two separate, independently managed vehicles with distinct capacity limits. Malte Heininger will continue to manage the Luxembourg SICAV fund unchanged, while Fredriksson and Smith will assume management responsibility for the French FCP fund effective September 1, 2023. The FCP fund will be renamed Carmignac Absolute Return Europe (CARE) to reflect the new management structure.
This appointment underscores Carmignac's broader commitment to expanding its alternatives division. The firm has appointed six alternative specialists over the preceding year and continues to strengthen its fund management capabilities across alternative strategies. The expansion reflects both the growing institutional demand for reduced-capacity long-short vehicles and Carmignac's strategic positioning to attract experienced portfolio managers from established competitors.
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