In January 2019, Carmignac Gestion announced that Carmignac Patrimoine's veteran manager Edouard Carmignac has relinquished his portfolio management duties on the strategy. The fund is now in the hands of co-portfolio managers Rose Ouahba, who had previously run its fixed-income sleeve for more than a decade, and David Older, who took charge of the equity sleeve in September 2018.
Edouard Carmignac remains a member of the firm's strategic investment committee, alongside Ouahba, Older, Frédéric Leroux, and Didier Saint-Georges, but will no longer be involved in the day-to-day management of Carmignac Patrimoine.
While Ouahba is a veteran manager at the firm, Older joined Carmignac Gestion more recently, in 2015, as a portfolio manager specialising in the technology, telecom, and media sectors. He was subsequently promoted to head of equities in early 2017.
Under his watch, the equity team has made efforts to formalise and enhance bottom-up security-picking with encouraging results so far, particularly within sectors such as technology and telecom.
While that brings some comfort, the recent changes to the manager line-up are significant, and thus we are placing Carmignac Patrimoine’s Morningstar Analyst Rating under review while we assess their impact. The fund was previously rated Bronze.
Investment Process
The Carmignac Patrimoine fund is managed with a capital-preservation approach, notably through the use of hedging policies to limit losses in falling markets. Both the allocation between the various asset classes and currencies and the selection of equities and bonds have a strong top-down element and are based on the identification of investment themes by the team.
Although there has been shorter term performance concerns, Carmignac Patrimoine's 10- and 15-year track-record, which includes periods of market corrections, remains compelling.
