A series of public fund research shows that the large-scale adjustment and style change of the A-share market will not allow fund managers to easily surrender their position style.
Although the traditional value blue chips in this round of market dominate the market style and the performance of scientific and technological growth is sluggish, the direction of fund research largely shows that public offerings are not willing to be distracted from traditional blue chips. Taking advantage of this wave of weak adjustment, the scientific and technological growth of small and medium market value has become the research direction of many public funds.
The style drift of fund positions in market fluctuations is often regarded as a “stain” of opportunism in the industry. At the moment of the rapid development of fof funds, such fund managers are often kicked out first. The general manager of a medium-sized fund company in Shenzhen said frankly in an interview with securities firm China that “fund managers should stick to the ability circle and pay attention to whether fund managers are adhering to their own investment style”, while another super large public offering insider in South China revealed that the company has interviews with fund managers at regular intervals and needs to explain in detail the major changes in positions.
public funds gather to investigate small cap stocks
Although the value of blue chip in the traditional sector is strong, it seems that it is not the focus of public funds, and fund managers are not willing to change the existing growth investment style due to style changes.
The latest fund research trends show that small and medium-sized growth stocks have become the research direction of fund managers recently. On February 21, the information disclosed by Zhejiang Wolwo Bio-Pharmaceutical Co.Ltd(300357) showed that 13 public funds, including GF fund, Harvest Fund, Cathay Pacific Fund, Shanghai Investment Morgan, BOC fund, Shanghai Bank fund, Baoying fund and Cinda Aoyin fund, jointly investigated the company on February 17. Zhejiang Wolwo Bio-Pharmaceutical Co.Ltd(300357) is a subdivision leader of desensitization diagnosis and treatment track. During the research, the topic of fund managers’ attention mainly involves the progress of pollen pricking liquid in the field of skin. The company recently released the 2021 annual performance express. The company’s total operating revenue in 2021 was 808 million yuan, a year-on-year increase of 26.95%; The net profit attributable to shareholders of listed companies was 338 million yuan, a year-on-year increase of 21.46%.
It is worth mentioning that in this wave market, most of the respondents are over 10 billion or just over five billion. With a market value of less than 6 billion yuan, Guoanda Co.Ltd(300902) which focuses on early fire detection and early warning is also closely watched by fund managers in this wave of market adjustment. On February 21, Guoanda Co.Ltd(300902) disclosed that the company was investigated by 21 institutions on February 18, including 10 public funds, including Qianhai open source fund, China Merchants Fund, China Europe Fund, Nord fund, etc.
According to the fund research summary, Guoanda Co.Ltd(300902) company’s energy storage and fire-fighting products can detect the changes of internal chemical composition of lithium battery in real time, and the chip can analyze and calculate the changes of various parameters, so as to judge whether to start fire-fighting measures. The company’s energy storage fire-fighting products can intervene in the occurrence of fire at an early stage, prevent the uncontrolled expansion of lithium battery heat and the explosion of energy storage cabinet, and carry out point-to-point and accurate fire extinguishing.
The above information shows that although the adjustment of the new energy track at the beginning of the year has done great harm to the performance of the public fund, the public fund seems to have “original intention” in its investment in the growth track. In the market adjustment, the relevant companies may welcome the attention of the fund if they have a slight opportunity, especially the mining degree of the stock is low, By the end of the third quarter of last year, no fund had entered the list of the top ten circulating shareholders.
In addition, in terms of small market value stocks, e fund and Wells Fargo fund also investigated Beijing Infosec Technologies Co.Ltd(688201) in the field of network security. The Jiangxi Guotai Group Co.Ltd(603977) in the field of industrial detonators also received intensive research from the Great Wall Fund, Agricultural Bank of China Huili and financing fund. The stock market value is only about 6.1 billion at present. The China Europe Fund investigated Ningbo Sunrise Elc Technology Co.Ltd(002937) in the field of automotive electronics, and the stock market value is less than 7 billion. On February 16, the Jinxiandai Information Industry Co.Ltd(300830) in the field of power informatization investigated by China Merchants Fund and Hengyue fund, The market value of Jinxiandai Information Industry Co.Ltd(300830) was less than 5 billion yuan as of February 21.
After the market adjustment at the beginning of the year, public fund managers also paid great attention to Suzhou Slac Precision Equipment Co.Ltd(300382) walking on two legs in cans and battery shells. On February 16, 2022, they welcomed the joint research of 27 public funds, including front-line head funds, including GF fund, Wells Fargo fund, Xingquan fund, South Fund, etc. Suzhou Slac Precision Equipment Co.Ltd(300382) is also a typical small cap growth stock. As of the closing on January 21, 2022, the stock market value is only 10.6 billion.
On February 18, Yidong electronics, with a market value of only 8 billion, also welcomed the research of e fund and Anxin fund. Yidong electronics. Yidong electronics is mainly engaged in the R & D, production and sales of precision electronic components such as FPC, connector components and LED backlight modules. The company’s main products can be divided into three categories: FPC, connector components and LED backlight modules. The company’s products are mainly used in consumer electronics, communication, new energy, automotive electronics, industry and medical treatment.
the company requires fund managers to stick to the ability circle
it is worth mentioning that despite the strong performance of traditional values such as banks and real estate, few fund managers interviewed recently have changed the established investment implementation style.
“Our company requires fund managers to stick to their own ability circle and have their own style. They can’t engage in growth and value at the same time,” said the general manager of a medium-sized fund company in Shenzhen in an exclusive interview with Chinese reporters of securities companies. The principle upheld by the company is to encourage fund managers to form their own ability circle and form their own comparative advantages and style. The company will communicate the positioning of the investment capability circle with the new fund manager, clarify the scope and direction of the capability circle, and dynamically adjust and optimize the capability circle in practice according to the wishes and actual investment capability of the fund manager, so as to help the fund manager gradually form his own advantageous investment style.
The above fund executives said frankly that fund managers should invest in industries they are familiar with, convert their research results as researchers into investment performance, scientifically and orderly expand several related industries, gradually expand the ability circle, and then set foot in the investment of other industries.
In the specific assessment, the general manager of the fund company also stressed that “pay attention to whether the fund manager is adhering to his own investment philosophy and investment style”.
The cognition of the above fund executives is actually universal in the public offering industry, which means that the possibility of fund managers easily changing their style under the current “industry rules” is also very low.
It is worth mentioning that an equity fund manager of the above-mentioned fund company also said frankly in an interview with the Chinese reporter of the securities firm that although the market adjustment range was large at the beginning of the year, and even some heavy positions fell by more than 15%, as long as there were no significant changes in investment logic and fundamentals, they were only short-term changes and fluctuations in market style.
“I will not switch from growth investment to traditional sector because of short-term changes in market style.” the equity fund manager told reporters that he will continue to stick to his familiar ability circle and continue to tap growth companies with high and ultra-high returns on the main line of investment.
style jumping around or considered unprofessional
In fact, in recent research interviews, the reporter also found that most fund managers tend to agree that this wave of market adjustment is a short-term style change. The investment in scientific and technological growth will continue to be the core main line of a shares, and the stable growth sectors such as real estate and banks will not be the core targets of long-term investment.
Huaan Securities Co.Ltd(600909) also believes that the benign adjustment of growth is coming to an end, and actively layout the market in the third stage of growth, especially the growth main line represented by domestic substitution of dual carbon and semiconductor, as well as communication, computer and military industry under the growth diffusion; Main line 3: in terms of consumption, we will continue to focus on travel service consumption such as tourism, airport, catering and leisure services benefiting from the rescue policy in the short term, and focus on the opportunities of mandatory consumer goods such as dairy products, condiments and food processing with price rise as the main line in the medium and long term; In terms of themes, we will continue to pay attention to investment opportunities related to the digital economy and the reform of state-owned enterprises.
Guotai Junan Securities Co.Ltd(601211) pointed out that in the future, with the decline of risk-free interest rate and risk evaluation and the recovery of risk preference, the upward trend of A-share market is still worth looking forward to. Due to the decline of risk assessment and the recovery of risk preference, the focus of investment style in the next stage is not on large-scale blue chip, but on scientific and technological growth, including new energy, electronics and national defense technology. The improvement of market risk appetite is limited, and investment should still focus on blue chips with performance.
It is obvious that no matter from the perspective of the duration of style change, or the fact that fund managers need to abide by more and more established rules in style, although the market style has changed, most equity fund managers can not actually change from growth to value blue chip.
A person in charge of fof fund raised by the public in the north also admitted in an interview with securities firm China that “when selecting the fund as the core position variety, the first concern is whether the style of the fund manager of the product is stable”. Under the background of the increasingly active development of fof, this also means that the behavior of fund managers jumping between growth and blue chip will be regarded as unprofessional immature.
“Even if the stocks in their own style are going down, fund managers generally will not easily change their style.” in an interview with a Chinese reporter from a securities firm, the assistant general manager of a super large top flow public fund investment in South China said that foreign shareholders will send people to the company every once in a while to interview each fund manager, which will involve very specific stock trading logic Style changes, etc.
He stressed to reporters that it would be difficult to explain the past in the interview if there was a style drift due to the short-term changes in the market and rashly changed the style characteristics of the previous fund.
