After the Spring Festival, the continuous adjustment of the market made many people feel confused, and the funds and fund managers with outstanding achievements also ushered in the test. However, some funds went against the current and showed good strength in the adjustment. For example, China's industry boom, the runner up in the performance of last year's partial stock hybrid fund, after undergoing market adjustment, bucked into the champion in the performance of partial stock fund (partial stock hybrid + common stock) in recent one year.

The adjustment range at the beginning of the year exceeded expectations

Still have confidence in the market

According to Zhong Shuai, the adjustment range and speed of the overall market from the end of last year to the beginning of this year exceeded expectations. He believes that looking back on the A-share market in recent five years, this is a relatively large wave of adjustment. As for the reasons for the adjustment, Zhong Shuai believes that one of the main reasons is that there are problems in the stage of market residual liquidity. When the macro liquidity is relatively better, there are problems in the residual liquidity of the equity market, which leads to the need to find a new price balance point under the new liquidity environment and the new trading volume level, and there will naturally be adjustments.

Looking forward to the future, Zhong Shuai is still full of confidence in the equity market. Volatility is a part of the market. With the continuous stability of the overall trading volume, we will find a new price that can start trading. Combined with the current valuation level of the market and the continuous decline of interest rates in the process of interest rate reduction in the Chinese market for a long time, we are still confident in the market. For us, we are not particularly concerned about whether we copy or not. More importantly, you should think about which stocks you want to buy. When the whole market reverses or really rebounds at a large level, it can achieve a large increase.

Heavy positions adjusted

Optimistic about the long-term allocation value of new energy

Zhong Shuai admitted that he is a fund manager with a relatively high turnover rate. 'My top ten heavy positions actually change greatly every quarter and often make some dynamic adjustments.' According to the quarterly report of the fund, the top ten heavyweight stocks in China's industry boom mix changed by 6 at the end of the third quarter of 2021 compared with the end of the second quarter, and 5 at the end of the fourth quarter compared with the end of the third quarter.

When it comes to the reasons for the shareholding adjustment, Zhong Shuai said that it is mainly considered from the two levels of plates and individual stocks. 'For example, in terms of large sectors, in the fourth quarter of last year, we reduced our holdings of some new energy and bought some media and medicine. At the beginning of this year, the phased performance of media and medicine was ok, but recently, with the continuous decline of the market, these strong sectors that rose in the early stage also made up for the decline. At the individual stock level, I mainly look at the performance changes of these companies and the impact of the overall market on them Is there a change in cognition? '

As a partial stock hybrid fund with excellent performance last year, new energy occupies an important position in the prosperity of the Chinese industry. Since this year, the new energy sector has also continued to adjust. However, in Zhong Shuai's view, the investment value of the adjusted new energy is actually improving. After adjustment, the valuation of new energy, especially the new energy vehicle industry chain, has actually reached a relatively reasonable and comfortable position. Now it should at least be a relatively medium-term bottom.

Control withdrawal focuses on Shareholding and structure

Select undervalued stocks in high boom industries

In addition to its outstanding performance, another factor attracting investors is that its pullback control performance is good. According to wind data, since Zhong Shuai began to manage the prosperity of the Chinese industry on July 28, 2020, the maximum withdrawal of the fund during his term of office was 11.84% by the end of last year. After adjustment since the beginning of the year, the maximum withdrawal during his term of office was 14.23% by February 22 this year, while Zhong Shuai's return on office in the same period was 118.81%.

On the secret of pullback control, Zhong Shuai believes that the key is not the position, but the shareholding and structure. For example, China's industrial boom, a partial share hybrid product dominated by equity assets, if only the withdrawal control is carried out from the position control, it is of little significance, mainly in terms of shareholding and structure. Zhong Shuai also said that he tends to invest in companies that can feel secure when buying. And this sureness is inseparable from his high-frequency research on the company.

Turning to his stock selection structure, Zhong Shuai said that he paid attention to two points. 'First, I am a growth stock, so I choose the growth industry with high prosperity, not to mention the track. I require the industry in which I invest in these companies to have sufficient long-term growth space, that is, to be in a relatively prosperous, rapid industrialization and high growth state. Second, I choose some relatively undervalued or reasonable valuation from the high prosperity growth industry Stock, its valuation is acceptable at least in my framework. For example, I think this company will grow 40 or 50 times in the future, and now its valuation is more than 20 times. This is OK. If it is in the future, it may double the growth every year, and a valuation of 50 or 60 times is also OK. ' Zhong Shuai also said that he would pay more attention to long-term value when selecting stocks.

At present, the scale is still within the capacity range

Strive to minimize the impact of scale on performance

In addition to excellent performance, another reason why the prosperity of Huaxia Industry has attracted market attention is its rapid scale growth in 2021. According to the regular report of the fund, the prosperity scale of Huaxia Industry increased from 90 million yuan at the end of the first quarter of last year to 12.298 billion yuan at the end of the year, and the scale increased by more than 135 times in three quarters.

In this regard, Zhong Shuai said: 'Last year, we carried out large purchase restrictions in the hope that the scale of China's industry boom will be relatively stable. For individual fund managers, there must be an upper limit on the scale that everyone can manage, which requires fund managers to choose a balance point. Managing a small-scale fund, no matter how good its performance, is of little significance, because it does not make money for more people Get the money. Not only should individuals find a comfortable balance, but also the scale and (fund company) business model should be established, so as to help as many holders as possible to make money. Moreover, as the size of the fund becomes larger, you can invest in different volumes, and more things will arouse your interest. '

The rapid growth of scale comes from the recognition of investors for the fund performance and the investment ability of fund managers. However, after the prosperity of China's industry has grown into an actively managed fund of more than 10 billion yuan, some people worry whether Zhong Shuai's ability can cope with the impact of scale growth? In this regard, Zhong Shuai said: 'My original investment style is partial to the growth of medium and small market value. When the scale becomes larger, I actually face two choices. First, abandon the original style and buy some big stocks, leading companies and white horse companies. In this way, the number of stocks in the portfolio can be kept unchanged. Second, try to maintain the original style, but the number of stocks will be greatly increased. Off In fact, I have thought a lot about the impact of scale on performance. In the final analysis, I think the source of performance should go back to my own investment framework, go back to the framework that supported you to do better, and supported you to achieve better performance and low retreat. Therefore, when you look at the latest quarterly report on the prosperity of China's industry, you will find that I tend to adopt the second way, that is, try my best to maintain my own investment style, or focus on the growth of medium and small market value. I think the current scale is good. It's not that it can't be controlled completely or it's very difficult. It's still a relatively adaptive state. '