well below those prevailing in previous crises

Goguenard Mao and the severe Lenin, two Andy Warhol paintings adorning the walls of his Office, were no doubt inspired Edouard Carmignac the desire to be, he also, in his own way inspired revolutionary. Head not an aging empire but a thriving management company, Carmignac management pattern applies on a daily basis to disseminate his ideas through 18 UCITS invested in 50 markets in the world.

If the company has 13 billion euros of assets under management, is not a coincidence. Free spirit banishes the constraints, Edouard Carmignac quickly printed his personality to the company he founded. Independence, the "founding value", comes not only to the control of the capital of his company. It is expressed also in marked belief management both by paris decided by rapid positions rotate when the wind does not blow in the expected direction. A rare flexibility at a time where by "fear and caution" many financial institutions fly their UCITS in deviating little from their indexes. Belief, the word is launched. In Carmignac management exit the "benchmarks", welcome to the realm of ideas.

His philosophy:

anticipate to not suffer

The allocation of assets is a collective original tactical and strategic vision. Management which is strongly active. It seeks to anticipate the movements of market rather than suffer them. Where the common installation of hedging transactions when scholarships or lower motto is early. Second Act: opportunism. This facet for a UCITS leads to capture the best of circumstances, even if go patterns or ideas. This is why it will never find in the funds of the company a reference to a style "value" or growth, size specifies capitalization or a single country. It is the stock market in its entirety and its opportunities that drive the selection of values. Finally, last pillar of management: the international. Because a single market is not sufficient to create value, 11 managers invest their stocks in the world, including emerging countries in Asia and Eastern Europe. Balance of shopping, they are not less of 96 of managed shares outstanding that are invested out of France.

His vision of the crisis:

"It is currently easier to buy and sell".

The liquidity crisis coupled with a recession in the major developed countries resulted in a restructuring of the portfolios. The latter takes account of a trivial fact: "Currently, it is much easier to buy and sell." Overall, the diversified funds that illustrate the "ideal" asset allocation of Carmignac management share between obligations (54), actions (27) and cash (19).

The level of liquidity remains high to seize the opportunities both on the market of the obligations of the actions. With regard to the first, State bonds on short periods dominate (30.5) because they will benefit from "the imperative of decline in the rate of the ECB then that the periods will be penalized by the inevitable recovery for both public debt to bail out the banking system to support the conditions". The post dedicated to private borrowing was penalized by the financial sector. But Edouard Carmignac believes that "their performance is sufficiently attractive to to build the wire of opportunities". Side actions, the prospect of an increase in the economic downturn has led to maintain a minimum exposure to shares and to reduce the most vulnerable sectors such as banks or insurance.

This reorganization of the allocation of assets in a context of prudent management. It aims to cushion possible bearish the market further and to minimize the sensitivity of a portfolio. Finally, in the optimistic assumption of a sustainable recovery of the markets, Edouard Carmignac stated that diverse portfolio already incorporates in its construction some predictable effects of the recent upheavals and the return of the activism of the States.

He loves:

emerging countries and gold

"We love more specifically China, the India and the Brazil because they experience a paradoxical situation as one of the most contested markets then that their valuations should be supported by favourable economic prospects and low valuations... well below those prevailing in previous crises." In panic, investors have forgotten that many of these countries benefit from a positive budgetary balance and a high rate of growth when the economies of major developed countries, they are about to experience a severe recession. Finally, their pool of savings is considerable. In other words, this means that these countries are able to implement effective strategies to support or even boost their activity by stimulating investment in infrastructure or domestic consumption.

Second axis, this time in sectoral terms, I like gold because the use of the public debt of weakened economies associated with the need for a decrease in interest rates should be allowed to know a significant appreciation. In the compartment dedicated to energy, I encourages oil because the market seems to anticipate a continuation of the decline in the crude to unrealistic levels, and solar energy in the case of an activity supported by the public and not very sensitive to the vagaries of short-term power.

He does not like:

the rigidity of the ECB

"I am afraid not to be the only one but I don't like the rigidity and the myopia of Jean-Claude Trichet, President of the ECB." By focusing his energy on the stability of prices in the short term, it does not measure the extent of the deflationary forces at work as a result of the global credit crunch. How to continue to argue that "until September, there was no indication a drying of the availability of bank credit to households and non-financial businesses" The conduct of a non-proactive monetary policy is serious consequences for Europe, so cruelly lacks a common fiscal policy to boost the activity of decisively. That Mr Trichet is rubs hands, its inertia can let us know next year negative inflation... but it will be associated with the most serious recession of the post-war period.