A French Fund Manager Beating 97% of Peers Is Shorting L’Oreal
- Says L’Oreal is fundamentally ‘good company’ but expensive
- Carmignac fund is long Adidas, Prada and short Nike, Burberry
L'Oreal lipsticks.
Photographer: Guillaume Souvant/AFP/Getty ImagesThis article is for subscribers only.
French cosmetic giant L’Oreal has returned close to 12% annually for the past 20 years, but Malte Heininger, manager of Carmignac’s Long-Short European Equities Portfolio, is now betting against it.
Heininger, whose fund is beating 97% of peers year-to-date, said he saw a crack in L’Oreal’s equity story in February when the French cosmetic giant reported fourth-quarter sales that disappointed the market. While the owner of beauty product brands Lancome and Garnier typically beats earnings expectations, the miss reflected a decline in shopping by Chinese travelers.