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The French investment house Carmignac Gestion focuses on growth stocks and gold. It’s not too late to enter the stock market, says Edouard Carmignac, the founder of the investment boutique.

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Edouard Carmignac

Edouard Carmignac: “Passive strategies with ETF products are cheap, but the crisis has shown what risks they are exposed to.”

© FONDS professional

The Carmignac Gestion investment firm has traditionally been undercover when it comes to changes in assets under management, and star fund manager Edouard Carmignac is usually reluctant to give investment advice. In an interview with the “Handelsblatt”, the investment professional made an exception in both cases. “At the end of May 2020, our assets under management were almost two billion euros higher than at the end of March,” he told the newspaper. According to the fund provider, the most recent figure was around EUR 31 billion.

The fund professional has a clear opinion on the question of who should be on the winning side in the coming months. “Digitization is giving growth stocks such as Amazon, Facebook, Microsoft and Alphabet an additional boost, and healthcare is also becoming a mega topic,” Carmignac told the “Handelsblatt”. He is convinced that the Covid 19 crisis has increased the competitive advantage of technology and healthcare winners. Despite the impressive price recovery of recent weeks, investors could still get in. “It is certainly not too late to jump on the band of high-quality stocks, even if current valuations make selection difficult.”

There is no way around gold
According to Carmignac, gold also remains an interesting investment. The price of the precious metal is currently moving towards new highs. “I still see room for maneuver in the next few months in the range of $ 2,000 per troy ounce. We are only at the beginning of a cycle that is also fueled by uncertainty,” said the investment professional.

Cyclical stocks, on the other hand, would have suffered from the crisis unless they were of extremely high quality. The same applies to passively managed index funds: “Passive strategies with ETF products are cheap, but the crisis has shown what risks they are exposed to. The quantitative money managers have done miserably this year,” criticized fund expert Carmignac – and predicts a renaissance of active managers. (fp)

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