The first batch of active equity funds disclosed the third quarterly report
The disclosure of the third-quarter reports for public mutual funds in 2024 has begun, with the first batch of actively managed equity funds releasing their reports, revealing the portfolio adjustments and investment strategies of fund managers.
In the third quarter, Feng Mingyuan, a fund manager with assets under management exceeding ten billion yuan, held significant positions in stocks such as GigaDevice, Sunlord Electronics, Beyonics, and Polyč¾° Shares. Although the fund achieved positive returns, it did not outperform the comparative benchmark for the same period.
Another well-known fund manager, Shi Cheng, made more noticeable adjustments to his heavy holdings, with nearly half of the top ten holdings in some funds being replaced.
Additionally, with the departure of the renowned fund manager Qiu Dongrong, several funds at Zhonggeng Fund experienced significant net redemptions, with a total of over 2 billion shares redeemed in the third quarter.
Feng Mingyuan: Underperforming the Performance Comparison Standard
On October 24th, four funds managed by Feng Mingyuan, the deputy general manager of Cinda Aoyu Fund and a fund manager with assets under management over ten billion yuan, released their third-quarter reports. These funds are Xin Ao New Energy Industry Equity, Xin Ao Research Selection, Xin Ao Leading Smart Selection, and Xin Ao Zhiyuan Three-Year Hold.
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As of the end of the third quarter, Feng Mingyuan's management scale exceeded 13 billion yuan. Among them, Xin Ao New Energy Industry Equity is the fund with the largest management scale under his management, amounting to 6.693 billion yuan.
Regarding the stock position, Xin Ao New Energy Industry Equity maintained a high position operation, with a position of 94.1% at the end of the third quarter. The fund's holdings in the third quarter were mainly focused on the electronics, machinery, computer, automotive, and new energy industries, with the fund maintaining a significant weight in the electronic semiconductor industry.
At the end of the third quarter, Xin Ao New Energy Industry Equity held significant positions in GigaDevice, Sunlord Electronics, Beyonics, Polyč¾° Shares, Changchuan Technology, Huaqin Technology, Huiding Technology, ElecTech, Anji Technology, and Tonghuashun.
Among them, Changchuan Technology, Huaqin Technology, Anji Technology, and Tonghuashun are new to the top ten holdings of Xin Ao New Energy Industry Equity.In terms of performance, the net value growth rate of the Xin Ao New Energy Industry Equity Fund is 9.49%, but it did not outperform the comparative benchmark return rate (13.84%) for the same period.
Feng Mingyuan pointed out in the third-quarter report that at the current stage, the US dollar interest rates are still at a high level, with ongoing geopolitical and military conflicts worldwide. The fragmented world poses challenges to China's technology and manufacturing industries, and there is a divergence in the globalized model. As the global manufacturing hub, China's economy has also been impacted accordingly. In the current unfavorable global macro environment, it is hoped to find and hold excellent companies that can actively respond to new changes and shocks, and to navigate through the cycles together with these outstanding companies.
Shi Cheng: Significant Adjustment of Heavy Holdings
On October 22, the Guotou Ruiyin Jinbao Flexible Allocation Mixed Fund, managed by Shi Cheng, released its third-quarter report for 2024, becoming the first actively managed equity fund to disclose its third-quarter report in the market.
At the end of the third quarter, the management scale of Guotou Ruiyin Jinbao Flexible Allocation was 1.761 billion yuan, a sequential increase of 10.75% compared to 1.59 billion yuan at the end of the second quarter.
In the third quarter, the net value growth rate of Guotou Ruiyin Jinbao Flexible Allocation was 15.10%, outperforming the comparative benchmark return rate (9.68%) for the same period. Looking at a longer period, the fund is still in a loss state. Choice data shows that as of October 24, the returns of Guotou Ruiyin Jinbao for the past six months, the past year, and the past three years were -0.7%, -11.46%, and -57.78%, respectively.
In terms of stock positions, Guotou Ruiyin Jinbao maintains a high position operation, with a position of 92.77% at the end of the third quarter.
At the end of the third quarter, Guotou Ruiyin Jinbao held significant positions in China Minmetals Resources, Kedall, CATL, Deye Shares, Sungrow Power Supply, Yongxing Materials, Tianci Materials, BYD, EVE Energy, and Jinlong Technology.
Looking at the top ten holdings of Guotou Ruiyin Jinbao, there were significant adjustments in the third quarter, with nearly half being replaced. Among them, Deye Shares, Sungrow Power Supply, BYD, and Jinlong Technology newly entered the top ten heavy holdings, while Puyue New Material, Tianqi Lithium, Duoduo Fluoride, and Ganfeng Lithium exited the list of the top ten heavy stocks.
Shi Cheng pointed out in the third-quarter report that in the invested fields, most links have passed the worst point of supply and demand, and the unit profitability has bottomed out, with some links beginning to repair profitability. However, due to the large-scale capital expenditures from 2020 to 2022, the recovery will not be particularly fast. But against such a backdrop, there are two investment opportunities. First, leading companies will fully expand their market share and profit margins, and these companies will first expand their market share before improving profitability. Second, against the backdrop of overcapacity in manufacturing, innovation on the application side will accelerate, and the emergence of new demands will bring investment opportunities. Industries representing performance growth, such as new energy and TMT (Technology, Media, and Telecommunications), have seen a profit recovery in some links in 2024. The acceleration of new demands such as energy storage and heavy trucks is also on the way, and the performance of companies that can deliver growth in 2024-2025 is optimistic.Zhonggeng Fund: Cumulative Net Redemption Exceeds 2 Billion Shares
On October 24th, Zhonggeng Fund's products disclosed their third-quarter reports, with several funds showing a significant net redemption. Following the departure of the well-known fund manager Qiu Dongrong, Zhonggeng Fund's cumulative net redemption for the third quarter exceeded 2 billion shares.
In terms of fund size, Zhonggeng Value Pioneer is the largest fund managed by Zhonggeng Fund, with a scale of 4.689 billion yuan at the end of the third quarter. The total shares of the fund decreased from 2.258 billion at the beginning of the period to 1.924 billion at the end, with a net redemption of over 300 million shares in the third quarter.
In the third quarter, the net value growth rate of Zhonggeng Value Pioneer's fund shares was 10.4%, underperforming the comparative benchmark return rate for the same period (11.73%).
Looking at the stock position, Zhonggeng Value Pioneer maintained a high position operation at the end of the third quarter, with a stock position of 92.79%.
At the end of the third quarter, the top ten heavy holdings of Zhonggeng Value Pioneer were: Green Leaf Pharmaceutical, Zero Run Automobile, China Hongqiao, Lihua Shares, Yuexiu Property, Alibaba-W, Muyuan Foodstuff, Western Mining, Hubei Yichang Chemical, and Huaxia Airlines.
In the third quarter, there were also adjustments to Zhonggeng Value Pioneer's heavy holdings, with Alibaba-W, Muyuan Foodstuff, and Western Mining newly entering the top ten holdings, while Seton Shares, China Overseas Development, and Chuanyi Shares exited the top ten holdings.
The third-quarter report of Zhonggeng Value Pioneer pointed out that the fund focuses on four major investment directions. First, industries with supply-side contraction or rigidity and resilient demand, or even with some growth, such as resource stocks represented by basic metals and other sectors. Second, sectors benefiting from policy shifts, with expectations of asset deflation diminishing and consumer confidence in real estate and consumption improving. Third, industries where demand growth is slowing down, but corporate capital expenditures are significantly reduced, leading to a substantial improvement in free cash flow, such as some public utilities and breeding sectors. Fourth, from the demand side, the fund is optimistic about technology stocks with strong business growth attributes and significant future potential, such as pharmaceuticals and smart electric vehicles.
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