Maxime Carmignac speaks of a «renaissance.» Behind it is a comprehensive overhaul initiated after a prolonged period of underperformance, particularly in the firm’s core strategies.

«I am never 100% satisfied—we can always do more and do better. But I am very pleased with the trend,» she said in an interview with finews.

Maxime Carmignac. (Image: Antoine Doyen)

Maxime Carmignac, daughter of founder Edouard Carmignac, serves as CEO of Carmignac UK and sits on the firm’s board and management committee. She plays a central role in shaping the company’s strategy, with a focus on product development, responsible investing, investment solutions, and talent acquisition.

From Single-Engine Dependence to Strategic Recalibration

For years, Carmignac relied heavily on a handful of high-performing strategies. Between 2000 and 2009, founder Edouard Carmignac delivered standout results—from the dot-com bust through the global financial crisis. However, rapid asset inflows led to a classic case of growing pains.

«We were like a four-engine aircraft, but only one engine was working,» Maxime Carmignac said. At its peak, with assets under management reaching €60 billion, portfolio construction became more conservative—at times at the expense of performance. The result was nearly a decade of inconsistent returns in flagship funds such as Carmignac Patrimoine and Carmignac Investissement.

«The Lab allows us to identify talent, test strategies, and only later open them up to external investors.»

Diversification as a Structural Pillar

In parallel, the firm began building new strategies. A key milestone was the launch of the «Carmignac Lab» in 2014 — an internal innovation platform.

«We did not want to operate like a pharmaceutical company dependent on external growth. The Lab allows us to identify talent, test strategies, and only later open them up to external investors,» Carmignac explained.

One outcome has been the expansion of the firm’s credit business, now one of its primary growth engines. Overall, Carmignac has significantly reduced its dependence on individual flagship funds.

Hard Reset for Flagship Strategies

The real inflection point came in late 2023, when Carmignac undertook a full restructuring of the investment teams managing its core funds.

For fixed income within Carmignac Patrimoine, the firm appointed an established internal team led by Guillaume Rigeade and Eliezer Ben Zimra. For equities and multi-asset components, it recruited external senior talent, including former Ruffer co-portfolio manager Jacques Hirsch and global equity manager Kristofer Barrett.

«We consciously took risks — but so far, they have paid off,» Carmignac said.

The new setup is already showing results: performance across flagship funds has improved materially. «All four engines are now running simultaneously,» she noted.

«If you deliver index-like returns plus fees, you are dead. It’s go big or go home.»

Active Management: Under Pressure, but Not Obsolete

Despite structural headwinds from ETFs, Carmignac sees continued relevance for active management—under strict conditions.

«If you deliver index-like returns plus fees, you are dead. It’s go big or go home.»

Internal research suggests that active equity strategies can generate long-term alpha—provided they exhibit high active share and benefit from open-architecture distribution. Carmignac sees particularly strong outperformance potential in European equities, where dispersion remains elevated.

Moreover, certain segments—such as fixed income and alternatives—remain structurally less suited to passive replication.

Private Markets as the Next Growth Vector

A key pillar of Carmignac’s forward strategy is expansion into private markets, with a focus on evergreen structures tailored to high-net-worth clients.

«Our clients should be able to allocate up to 10% of their portfolios to private markets. Until now, we were not able to offer that,» Carmignac said.

In partnership with UK-based specialist Clipway, the firm has developed a platform focusing on secondaries and co-investments—aimed at mitigating traditional drawbacks such as illiquidity and high entry barriers.

«For us, Switzerland is a kind of modular growth and diversification platform.»

Switzerland as a Strategic Anchor Market

Switzerland is central to Carmignac’s transformation. The market is both highly sophisticated and receptive to innovation.

«Switzerland is extremely sophisticated—you do not need to explain evergreen structures here,» Carmignac said.

Client demand is particularly strong for credit strategies, emerging markets, and private markets. In multi-asset strategies, the firm is focused on rebuilding trust through performance.

«For us, Switzerland is a kind of modular growth and diversification platform,» she added.

AI as a Productivity Lever

Carmignac is also repositioning itself technologically, with artificial intelligence playing an increasingly central role.

«In the past, some teams spent 90% of their time collecting data—today it’s closer to 10%,» Carmignac said.

The result is a significant increase in productivity without expanding headcount. Assets under management have grown from €30 billion to approximately €41 billion over the past three years, while team size has remained stable.

A Renaissance—Still in Its Early Stages

Despite tangible progress, Carmignac remains cautious. The current trajectory marks only the beginning of a longer transformation.

«We have started our renaissance—but we still need to prove ourselves,» Carmignac emphasized.

The business remains fundamentally people-driven—and therefore inherently volatile. In an increasingly complex market environment, humility is essential.

Long term, however, Carmignac sees itself well positioned: as a specialized boutique with clear strategic focus, high agility, and strong alignment of interests between investors, employees, and owners.

«This is not a revolution—it is an evolution,» Carmignac concluded.