On April 20, Guangfa’s Small Cap Growth managed by Liu Gesong, the “ace” fund manager of Guangfa fund, took the lead in disclosing the first quarterly report of 2022.
Gf’s small cap growth significantly increased its stock position to 94.88% in the first quarter, the second highest position in the fund’s history, with the highest record of 94.89% in the 2013 annual report. However, the top ten heavyweight stocks of GF’s small cap growth have not changed much.
Specifically, the top ten big warehouse stocks that grow up at the end of the first quarter of the quarter when gf’s small disk is growing. The top ten big warehouse stocks are: 30066 Sg Micro Corp(300661) Eve Energy Co.Ltd(300014) ), Ginlong Technologies Co.Ltd(300763) ( Ginlong Technologies Co.Ltd(300763) ), Jafron Biomedical Co.Ltd(300529) ( Jafron Biomedical Co.Ltd(300529) ), Shanghai Pret Composites Co.Ltd(002324) ( Shanghai Pret Composites Co.Ltd(002324) ).
Among them, grid connected inverter suppliers Ginlong Technologies Co.Ltd(300763) and Shanghai Pret Composites Co.Ltd(002324) have newly entered the top ten heavy positions. At the time of reporting in 2021, the shareholding of the above two stocks in the growth of GF small market ranked 13th and 20th. However, judging from the change of shareholding number in a single quarter, only Ginlong Technologies Co.Ltd(300763) obtained the increase of Liu Gesong’s shareholding in the top ten heavy positions, with a single quarter increase of 347.87%.
In addition, Sg Micro Corp(300661) , Longi Green Energy Technology Co.Ltd(601012) , Lb Group Co.Ltd(002601) , Chongqing Sokon Industry Group Stock Co.Ltd(601127) were slightly reduced by Liu Gesong Boe Technology Group Co.Ltd(000725) ( Boe Technology Group Co.Ltd(000725) ) and Wuhan Guide Infrared Co.Ltd(002414) ( Wuhan Guide Infrared Co.Ltd(002414) ) withdrew from the list of the top ten heavyweight stocks in the first quarterly report.
In terms of performance, during the reporting period, GF small cap growth, the growth rate of net value of class a fund units was – 16.39%, the growth rate of net value of class C fund units was – 16.48%, and the benchmark yield of performance comparison in the same period was – 14.47%.
The growth scale of GF small cap also declined significantly in the first quarter, from 13.423 billion yuan at the end of 2021 to 9.871 billion yuan at the end of the first quarter, with a 26.46% decline in scale.
For the investment situation in the first quarter, Liu Gesong said in the first quarterly report that in the first quarter of 2022, the epidemic situation in major cities in China occurred repeatedly, and the overseas conflict between Russia and Ukraine had a great adverse impact on the international environment. At the same time, the Federal Reserve entered the cycle of raising interest rates. Affected by the above multiple negative effects, the A-share market fluctuated violently.
“With the convening of the first quarter Finance Committee meeting, the market has obvious bottom characteristics. From a medium – and long-term perspective, we are not pessimistic about the future capital market.” Liu Gesong pointed out that the market decline in the first quarter was a response to the superposition of multiple negative factors, which fully reflected most of the negative expectations. Considering from the perspective of industrial development and medium and long-term investment, there are many industries with investment value in the current A-share market. I hope fund investors can be patient.
During the reporting period, the configuration direction of GF’s small cap growth was mainly photovoltaic, power battery, new chemical materials, chips and other manufacturing industries.
From the perspective of enterprise profit cycle, Liu Gesong believes that China’s comparative advantage manufacturing industry represented by the photovoltaic industry will enter a three-year high-speed growth stage in the third quarter. The new technology photovoltaic cells of some integrated leading companies will be put into operation one after another, the problems of short boards in the industrial chain will be gradually resolved, and the demands for global energy security will be improved. These are the basis for the high-speed growth of the industry in the future.
From the perspective of cost performance, after the adjustment in the first quarter, the valuation level of many industries returned to the position at the end of 2018. Liu Gesong judged that the market may usher in a structural market from the second quarter.
“We are firmly optimistic about the high-end manufacturing industry.” Liugesong said that in the past decade, the complexity of China’s manufacturing products has been increasing, and the agglomeration effect of the industrial chain has also been continuously emerging. In addition to the low labor cost, the large number of engineers and the completeness of the industrial system are the competitive advantages of China’s manufacturing industry, which means that the manufacturing industry has comprehensive comparative advantages in innovation ability, comprehensive cost, organization ability and response ability. Once established, this systematic advantage is difficult to be overturned. Therefore, China’s manufacturing industry with “global comparative advantage” will continue to broaden its moat.
