Revealing the Investment Strategy of Billion-Dollar Fund Managers
The third quarter of the year brought remarkable success for numerous billion-dollar fund managers, as evidenced by the recent disclosures of public fund performance. Notable fund managers like Gelan from China Europe Fund and Hu Xinwei from Huitianfu Fund have reported significant improvements in their fund's performance, suggesting a significant upturn in the market. Following the last two years of market adjustments, several fund managers believe that a medium to long-term market turning point may have emerged, fueled by increasingly positive signals of economic recovery. It is anticipated that more sectors will showcase a reversal in their operational trends.
Let us take a closer look at the third-quarter performances of some acclaimed funds. The China Europe Medical Health fund, managed by Gelan, saw a substantial net increase of 18.76% in the A-class asset value during the reporting period. This growth was facilitated by increasing holdings in companies such as WuXi AppTec, Kanglong Chemical, and Tigermed, while decreasing investments in others like Hengrui Medicine and Mindray Medical. Moreover, companies like Kailaiying emerged as major holdings in the third quarter.
In a different strategy, fund manager Dong Chen, who manages the Huatai-PineBridge Multi-Strategy fund, recorded a 13.85% growth in the A-class asset net value. During the same period, Dong Chen's adjustments included increasing stakes in stocks like China Merchants Energy Shipping while reducing holdings in Zhongjin Gold and China Merchants Shekou among others. Notably, emerging stocks like Shanyin International, Binjiang Group, and SF Holdings have joined the ranks of major holdings.
Similarly, under the management of Hu Xinwei, the Huitianfu Consumption Industry Mixed fund showed an 11.71% increase in its asset net value. The strategy here also involved tactical adjustments such as boosting investments in Midea Group and lessening stakes in renowned companies like Kweichow Moutai and Luzhou Laojiao. New significant holdings included major players like Gree Electric and Yingjia Gong Jiu.
Additionally, other fund managers such as Zhang Kun (managing E Fund Blue-Chip Selection), Hu Yibin (managing Huaan Media Internet Mixed), Liu Yanchun (managing Invesco Great Wall Dingyi A), Jiang Cheng (managing Zhongtai Xingyuan Value Preferred A), and Xie Zhiyu (managing Xingquan Herun LOF) all saw more than a 10% increase in their respective funds during this period.
Optimism for future market prospects remains prevalent among fund managers. Following a strong upward trend in the A-shares market since late September, there's a keen interest in figuring out the key sectors and opportunities for the fourth quarter. Analyzing recent fund reports reveals that several managers express a positive outlook for upcoming market performances.
Dong Chen shared in a report, “We are optimistic about the market in the coming months. With the implementation of economic policies beginning to show their effects, there is a likelihood of steady domestic economic recovery, which will in turn improve company EPS expectations. In parallel, as the Federal Reserve embarks on a rate-cut cycle, and with our central bank also adopting rate cuts and reserve requirement reductions, we can anticipate an improvement in domestic liquidity environments, thereby aiding in the valuation recovery of the A-share market. However, as the rapid market recovery observed in late September was quite robust, we predict that the market will likely stabilize and experience a gradual upward movement with sector rotation.”
Manager Zhou Weiwens from CEF highlighted specific strategic directions, indicating confidence in companies realizing their long-term value potential. Despite recent setbacks caused by industrial downturns, anticipated profitability improvements within the next year or two add to their attractiveness. Zhou Weiwens elaborated, “Firstly, we have observed stabilization in lithium battery prices and, with leading battery companies showing remarkable profit resilience, the upcoming two years could bode well for these businesses as the sector recovers. This motivates us to increase our holdings in leading battery enterprises. Secondly, as the AI industry continues to enhance technological benchmarks, companies within the AI upstream industry chain, particularly those exemplifying computational power, display clear benefits, warranting increased exposure to these excellent entities. Finally, vehicle manufacturing companies not only exhibit strong competitive advantages but also promise growing overseas market shares, urging continued investment.”
In summary, the recent period has not only witnessed a rejuvenation in fund performances but also fostered a consensus among fund managers about a promising future for the equity market. As various strategic adjustments made by leaders in this field suggest, an optimistic outlook is prevalent, with many expecting a gradual recovery and expansion in diverse sectors, ultimately contributing to wealth generation opportunities for investors.
Let us take a closer look at the third-quarter performances of some acclaimed funds. The China Europe Medical Health fund, managed by Gelan, saw a substantial net increase of 18.76% in the A-class asset value during the reporting period. This growth was facilitated by increasing holdings in companies such as WuXi AppTec, Kanglong Chemical, and Tigermed, while decreasing investments in others like Hengrui Medicine and Mindray Medical. Moreover, companies like Kailaiying emerged as major holdings in the third quarter.
In a different strategy, fund manager Dong Chen, who manages the Huatai-PineBridge Multi-Strategy fund, recorded a 13.85% growth in the A-class asset net value. During the same period, Dong Chen's adjustments included increasing stakes in stocks like China Merchants Energy Shipping while reducing holdings in Zhongjin Gold and China Merchants Shekou among others. Notably, emerging stocks like Shanyin International, Binjiang Group, and SF Holdings have joined the ranks of major holdings.
Similarly, under the management of Hu Xinwei, the Huitianfu Consumption Industry Mixed fund showed an 11.71% increase in its asset net value. The strategy here also involved tactical adjustments such as boosting investments in Midea Group and lessening stakes in renowned companies like Kweichow Moutai and Luzhou Laojiao. New significant holdings included major players like Gree Electric and Yingjia Gong Jiu.
Additionally, other fund managers such as Zhang Kun (managing E Fund Blue-Chip Selection), Hu Yibin (managing Huaan Media Internet Mixed), Liu Yanchun (managing Invesco Great Wall Dingyi A), Jiang Cheng (managing Zhongtai Xingyuan Value Preferred A), and Xie Zhiyu (managing Xingquan Herun LOF) all saw more than a 10% increase in their respective funds during this period.
Optimism for future market prospects remains prevalent among fund managers. Following a strong upward trend in the A-shares market since late September, there's a keen interest in figuring out the key sectors and opportunities for the fourth quarter. Analyzing recent fund reports reveals that several managers express a positive outlook for upcoming market performances.
Dong Chen shared in a report, “We are optimistic about the market in the coming months. With the implementation of economic policies beginning to show their effects, there is a likelihood of steady domestic economic recovery, which will in turn improve company EPS expectations. In parallel, as the Federal Reserve embarks on a rate-cut cycle, and with our central bank also adopting rate cuts and reserve requirement reductions, we can anticipate an improvement in domestic liquidity environments, thereby aiding in the valuation recovery of the A-share market. However, as the rapid market recovery observed in late September was quite robust, we predict that the market will likely stabilize and experience a gradual upward movement with sector rotation.”
Manager Zhou Weiwens from CEF highlighted specific strategic directions, indicating confidence in companies realizing their long-term value potential. Despite recent setbacks caused by industrial downturns, anticipated profitability improvements within the next year or two add to their attractiveness. Zhou Weiwens elaborated, “Firstly, we have observed stabilization in lithium battery prices and, with leading battery companies showing remarkable profit resilience, the upcoming two years could bode well for these businesses as the sector recovers. This motivates us to increase our holdings in leading battery enterprises. Secondly, as the AI industry continues to enhance technological benchmarks, companies within the AI upstream industry chain, particularly those exemplifying computational power, display clear benefits, warranting increased exposure to these excellent entities. Finally, vehicle manufacturing companies not only exhibit strong competitive advantages but also promise growing overseas market shares, urging continued investment.”
In summary, the recent period has not only witnessed a rejuvenation in fund performances but also fostered a consensus among fund managers about a promising future for the equity market. As various strategic adjustments made by leaders in this field suggest, an optimistic outlook is prevalent, with many expecting a gradual recovery and expansion in diverse sectors, ultimately contributing to wealth generation opportunities for investors.
Last edited at：2024/12/16
#Kweichow Moutai