An unknown small cap stock has attracted the collective attention of the five fund kings.
Due to the 5% placard line and the double ten regulations, small cap stocks are often not attractive to fund managers managing large-scale funds, and the net fund value pulling effect of doubling can only scratch the surface. However, according to the latest fund research summary disclosed, Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) A-share company with a market value of only 12.3 billion attracted five fund kings to appear one day. Most of these fund kings managed super large-scale funds that did not match the market value of Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) and Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) had not entered the investment vision of mainstream funds by the end of last year.
insiders emphasize that Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) is located in a track where the fund once had a successful “historical experience” in excavating dark horse tickets. There is a well-known case of “getting bigger with small” in the tickets with fund positions. The stock price increase of 10 times in six years makes the relevant small stocks become the key target affecting the net value of the fund
top five funds like the same ticket
Can small stocks drive the car of large funds? In the context of increasing fund scale, fund managers have unwritten agreements on the market value of the subject matter of personal research and heavy warehouse stocks. For small market value companies, attracting fund company researchers to participate in the research itself has been a “success” of concern, and some small cap stocks have broken the traditional impression in terms of fund scale and job level in attracting fund research.
According to the research information disclosed by the A-share listed company Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) recently, Xiao Nan, deputy general manager of e fund, Wang Zonghe, deputy general manager of Penghua Fund, Guo Jun, managing director of Boshi fund, Mao Wei, general manager of Equity Investment Department of Nanfang fund and Yang Jianhua, deputy general manager of Great Wall Fund appeared on the research list of the stock on the same day.
It is noteworthy that the above five people are typical representatives of “investment and excellence are officials” among fund managers, and they are also the employment strategy for fund companies to retain top fund managers. Taking Xiao Nan as an example, e fund announced last year that Xiao Nan, the fund manager of e fund’s consumer industry, has served as the deputy general manager level senior manager of e fund since July 24, 2021.
therefore, the five top fund managers who are also senior managers collectively appeared in an A-share company on the same day, which to a considerable extent implied the latest investment preference of the current mainstream funds, while Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) as the research object of the five fund bosses is actually a typical small cap stock, with a total market value of only about 12.3 billion so far
“The research of fund companies is usually pragmatic, and the input-output ratio should be considered in the research. Therefore, fund managers who manage large-scale funds usually research objects with a certain market value.” A person from a large fund company in Shenzhen said frankly in an exclusive interview with a Chinese reporter of the securities times securities firm that the researchers usually knew enough about the situation in the past for the small and medium-sized market value stocks with insufficient certainty, while the objects of fund managers’ personal investigation are often companies with strong certainty and medium and large market value. Relatively speaking, due to the liquidity of stocks and the difficulty of allocating enough stocks in the fund stock pool portfolio, Companies with small market value are not attractive to fund managers with large-scale funds.
According to the data, Xiao Nan currently manages a total of nearly 54 billion yuan, Wang Zonghe manages more than 31 billion yuan, Mao Wei manages about 20 billion yuan and Guo Jun manages about 10 billion yuan. Yang Jianhua, who has been in the industry for the longest time, has the least management funds, but the veteran also manages 6 billion yuan.
what is the situation that allows small votes to drive large funds
Considering that in the actual investment operation of fund managers, the investment behavior of public funds will be limited by the “double ten provisions” and the 5% listing line, generally, the market value of a single stock held by a fund will not exceed 10% of the net asset value of the fund and 5% of the market value of the shares of listed companies.
Taking the current market value of Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) 123 billion as an example, a fund can reach the listing line of 5% of the stock as long as it invests 615 million yuan. Obviously, this is a relatively extreme situation. In the fund position of listed companies, it is more common that the position of a fund in relevant shares accounts for no more than 3% of the total market value of the stock. If the position ratio of less than 3% is taken, it means that the position amount of a fund is less than 300 million.
however, whether such a small position can attract Xiao Nan, Wang Zonghe, Mao Wei, etc. after all, Xiao Nan manages up to 54 billion yuan and Wang Zonghe manages more than 30 billion yuan. Even if the stock price of the investigated stock doubles in the future, for these top flow fund managers who manage super large-scale funds, The effect of stimulating the net value of the fund as a whole is still superficial
Previously, the deputy general manager of a public fund in South China also said frankly at the internal exchange meeting that for large-scale funds, mining one or two listed companies will make a relatively small contribution to the return of the portfolio. On the contrary, the in-depth research of the industry and the grasp of the industrial chain may bring more excess contributions to the investment portfolio.
Therefore, it seems that only a more amazing imagination space can make a single stock bring a pulling effect to large-scale funds. It is worth mentioning that the track where Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) is located has always been the object of top flow fund leaders who are keen on heavy positions, and there have been amazing cases of “small to large” in the track, and there have been fund heavy positions with a market value of nearly 300 billion yuan.
The Chinese reporter of securities times · securities firm noted that the market value of Muyuan Foods Co.Ltd(002714) in the heavy position of the fund was only 7.9 billion yuan on April 13, 2014, which was a typical small cap dark horse. At that time, the heavy position of the stock was almost unattractive to large fund managers, and the effect of driving the net value of the fund was limited. Even on April 13, 2015, the value of the stock market was only about 17 billion yuan, This means that the market value of Muyuan Foods Co.Ltd(002714) in 2014 and 2015 is roughly similar to that of Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) today. After the heavy position of the fund is involved and held for a long time, Muyuan Foods Co.Ltd(002714) has transformed from a small cap stock to a super market value variety in six years, and the share price has risen more than tenfold in six years, which has also brought a significant net value boost to the fund managers managing large amounts of funds.
“invisible value” driven fund Tianwang collective rush to raise funds
Despite all kinds of doubts, Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) with a market value of only 12.3 billion has successfully attracted the personal research of the five fund kings, and the core problems in this fund research may also explain the reason why the five fund kings gather together a small company to a certain extent.
In the question and answer session of fund research, a fund manager asked Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) why he chose the building breeding mode Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) said that the first reason is that the southern region where the company is located does not have so many flat lands as the northern region. Building breeding can realize land intensification and slaughter more pigs on the same land area; Secondly, compared with the traditional model, building breeding adopts the all in and all out method, which has relatively high management efficiency and obvious advantages in biosafety prevention and control; In addition, the company’s building project adopts the integrated breeding mode of “6750” standardized production line (6000 sows, 750 ancestors and corresponding fattening). Each production line is equipped with about 210 people as standard. Compared with the traditional flat breeding, the personnel are relatively concentrated and easy to manage. The company’s building breeding project in Gaozhou has initially reached production capacity, and the production cost in the first quarter is about 14.89 yuan / kg, with good results. With reference to this achievement, in the case of limited land resources, the building breeding mode is also a better choice, and the comprehensive cost can be reduced by reducing the operation cost, improving the management level and personnel efficiency.
In addition, Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) also has plans for diversified development, which may mean that the stock has some imagination at the market value level Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) said during the fund research that the company’s follow-up business will continue to be carried out along the direction of the company’s modern agricultural strategy. In terms of food business plan: the company continues to carry out food end construction with the following food companies as the main body, and the products have been stationed in chain supermarkets, large food enterprises, new retail and other channels. With the gradual scale of pig slaughter, the company will actively explore and develop slaughtering business and food business to realize the extension of the industrial chain.
Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) disclosed annual performance is also in great contrast to the collective appearance of the five fund kings Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) earlier released the annual performance report, which said that the operating revenue in 2021 was about 3.221 billion yuan, a year-on-year decrease of 20.88%; The net profit attributable to the shareholders of the listed company was about 389 million yuan, a year-on-year decrease of 55.07%; The basic earnings per share was 0.7441 yuan, a year-on-year decrease of 55.07%. After the results were released, the Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) share price rose instead of falling, which attracted fund leaders to gather for research, further highlighting the possible “invisible value” of the stock.
In addition, in the weak market environment of a shares, many fund managers who manage large amounts of funds prefer to hold positions with high profits and high dividends, which may also be a factor to attract large-scale funds to collectively investigate the stock Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) disclosed that the annual distribution plan is to distribute cash dividends of 13 yuan (including tax) for every 10 shares, no bonus shares and no increase, which also attracted the attention of fund managers in the question link.
According to the information disclosed by Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) by the end of last year, Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) had not been explored by mainstream funds and had not yet entered the core stock pool of mainstream funds. Only a few index funds held a small number of positions in the stock. The collective investigation of fund leaders means that the probability of Shenzhen Kingkey Smart Agriculture Times Co.Ltd(000048) entering the core stock pool of public funds has increased significantly.
