With the gradual deepening of the disclosure period of the four seasons newspaper, some traditional “early birds” have also handed over their transcripts, and Qiu Dongrong of Zhonggeng fund is one of them.
As a well deserved “brand” of Zhonggeng fund, Qiu Dongrong is one of the few traditional “top flow” fund managers with excellent performance in the year of “great change” of active equity funds in 2021.
One of his top products, Zhonggeng small cap, achieved a return of 65.15% in 2021, ranking among the top 30 of all active equity funds (one for different shares), ranking fourth among common equity funds. Combined with the fourth quarter and previous positions disclosed in the latest quarterly report, it is not easy to achieve such a result without re allocating new energy concept stocks.
Although Zhonggeng’s small cap value replaced half of the top ten heavyweight stocks in the fourth quarter, as a representative of the “value school”, Qiu Dongrong still chose to continue to trust and increase his holdings in his optimistic stocks, and the new top three heavyweight stocks were among the top ten heavyweight stocks in the third quarterly report. Among them, the share price of Shanxi Lanhua Sci-Tech Venture Co.Ltd(600123) the number one heavy warehouse stock fell by nearly 1 / 4 in the fourth quarter. From the number of shares held, Qiu Dongrong still bought 1.5973 million shares.
In the quarterly report, Qiu Dongrong said when referring to the idea of future investment: “we adhere to the concept of undervalued value investment, and build a cost-effective small and medium cap portfolio by selecting small and medium cap stocks with reduced fundamental risk, positive profit growth and cheap valuation, so as to strive to obtain sustainable excess returns”, Perhaps the “falling and buying” of Shanxi Lanhua Sci-Tech Venture Co.Ltd(600123) is based on this judgment.
In this case, the fourth quarter can basically hold the “success” of the first three quarters, mainly relying on the newly entered top ten heavy positions. By the end of last year, Chengdu Haoneng Technology Co.Ltd(603809) , Changchun Faway Automobile Components Co.Ltd(600742) (auto parts) and Zhuzhou Qianjin Pharmaceutical Co.Ltd(600479) (traditional Chinese Medicine) of Zhonggeng’s new heavyweight stocks with small cap value came from the popular track in November and December last year, and Chengdu Haoneng Technology Co.Ltd(603809) , Zhuzhou Qianjin Pharmaceutical Co.Ltd(600479) and Shandong Nanshan Aluminium Co.Ltd(600219) appeared in the top ten heavyweight stocks of the fund for the first time.
If the four products managed by Qiu Dongrong are compared horizontally, there will be a certain difference in income in 2021, and different positions based on similar investment ideas are the main reason for this result.
Take last year’s “good start” product Zhonggeng value quality held for one year as an example. Due to product design, the fund can allocate Hong Kong stocks. According to the latest position list, under the overall downturn of the Hong Kong stock market in the second half of last year, Qiu Dongrong still allocated up to six Hong Kong stocks among the top ten heavy positions. Although the overall performance was not as good as the small cap value of Zhonggeng, the unit net value was 1.44 yuan / share as of January 17, when it was nearly one year old (established on January 19, 2021), It can still rank in the forefront of the new star funds issued at the beginning of last year.
Although one is only allocated with A-Shares and the other is re allocated with Hong Kong shares, the allocation idea is similar: cyclical shares
Shanxi Lanhua Sci-Tech Venture Co.Ltd(600123) top ten circulating shareholders by the end of the third quarter of 2021
For example, at the end of the third quarter, Qiu Dongrong’s four funds accounted for the second to fifth largest circulating shareholders, second only to the actual controller of the company. According to the latest quarterly report, except that Zhonggeng held the top ten heavyweight stocks in one year, it was impossible to know the specific position adjustment, When the other three funds fell sharply in the fourth quarter, one stock did not decrease or even increased its position slightly.
The stereotype of value investment is usually long-term holding, but value investment does not simply mean that you can’t buy it. Maybe Qiu Dongrong’s position change in the fourth quarter can enlighten investors.
