At the beginning of 2022, the performance of active equity funds has been greatly differentiated.
As of January 17, the yield of the active equity fund has differed by more than 20 percentage points from beginning to end this year. Among them, the Zhonggeng value pilot hybrid managed by Qiu Dongrong ranks first in the same category and third in the whole market with a yield of 5.64%.
On January 18, Zhonggeng value pilot disclosed the 2021 fourth quarter report, and its latest position adjustment path and future investment strategy surfaced.
keep the high position running
After suffering in 2019 and 2020, Qiu Dongrong, a 10 billion fund manager, finally made a beautiful turnaround last year. By 2022, Qiu Dongrong’s fund performance will be the first of its kind.
Taking the Zhonggeng value pilot hybrid under its management as an example, the choice data shows that as of January 17, the yield of the fund this year is 5.64%, ranking first among 2866 funds of the same kind. From the perspective of the whole market fund, its income this year is second only to Galaxy sports and entertainment hybrid and Huatai Bairui new financial real estate hybrid.
Zhonggeng value pilot mixed income source: choice
What kind of play did Qiu Dongrong take in the fourth quarter of last year?
According to the four seasons report of Zhonggeng value navigation, Qiu Dongrong still held high in the fourth quarter of last year. By the end of the fourth quarter of last year, the equity investment of the fund accounted for 94.28% of the total assets of the fund, an increase of nearly 4 percentage points over the end of the third quarter of last year.
For the reasons for maintaining the high position operation, Qiu Dongrong explained: “based on the asset allocation strategy of equity risk premium, the fund maintains a relatively high equity allocation position, and after completing the necessary process of changing the fund’s investment scope, it starts to invest in Hong Kong stock standard stocks and gradually increase the allocation proportion of Hong Kong stocks.”
It is worth noting that from the perspective of the funds that recently disclosed the four seasons report, most funds maintain high positions. Taking the advanced manufacturing hybrid of SDIC UBS managed by Shi Cheng as an example, as of the end of the fourth quarter of last year, the proportion of equity investment in the total assets of the fund was 92.57%, an increase from 90.01% at the end of the third quarter of last year.
focus on four directions
Where is Qiu Dongrong’s sword finger?
From the change of the top ten heavyweight stocks of Zhonggeng value pilot hybrid, Yankuang energy, CNOOC, Gemdale Corporation(600383) , Hl Corp (Shenzhen)(002105) have become the top ten heavyweight stocks of the fund. meanwhile, Qiu Dongrong still loved the banking sector and significantly increased his position of Jiangsu Changshu Rural Commercial Bank Co.Ltd(601128) 15311400 shares while maintaining his position in Jiangsu Suzhou Rural Commercial Bank Co.Ltd(603323) . In addition, he reduced China Pacific Insurance (Group) Co.Ltd(601601) 1804600 shares.
Qiu Dongrong also analyzed his investment logic and promising direction.
He said that he focused on four investment directions:
first, finance and real estate in the large market value stocks.
Qiu Dongrong said that in the financial sector, he is optimistic about regional banking stocks related to the manufacturing industry chain, serving the real economy and having unique competitive advantages. Such banks have sound operation, low fundamental risk, extremely low valuation and high growth.
Real estate companies focus on leading central enterprises with the advantages of high credit and low financing cost. Qiu Dongrong believes that the long-term demand for real estate is still. With the mitigation of policy risks and the exposure of operational risks, such companies have stronger anti risk ability, high possibility of extension expansion and very low valuation. When the real estate market is stable in the future, they still have good return potential.
Second, coal, energy and resource companies.
Qiu Dongrong said that the clearing of relevant markets is good, but many commodity companies outside China lack long-term capital expenditure, the supply contraction is serious, the supply elasticity is insufficient, and the supply recovery is not overnight. In the medium and long term, under the influence of environmental protection and carbon neutralization factors, the medium-term supply constraints and marginal costs will rise, the commodity price center will inevitably rise, and new applications will continue to expand, resulting in a significant increase in the value of stock assets.
In addition, from the perspective of market pricing and valuation, such companies are regarded as cyclical assets with extremely low valuation, good cash flow, less capital expenditure, high dividend yield and high expected return corresponding to current price. Therefore, in the context of carbon neutrality, we continue to be optimistic about the investment value of high-quality assets in energy and resources.
third, small and medium cap value and growth stocks.
In Qiu Dongrong’s view, this aspect includes subdivided leading companies with unique competitive advantages in the broad manufacturing industry. For example, in chemical, light industry, nonferrous metal processing, machining and other industries, we can dig out real undervalued small cap value stocks and growth stocks according to the three standards of demand growth, supply contraction and subdivided industry leaders.
On the other hand, it also includes companies with low valuation and benefiting from the gradual recovery of offline consumer demand in the post epidemic era, such as some stocks in commerce and retail, textile and clothing, transportation and other industries.
in addition to the A-share market, Qiu Dongrong is also quite optimistic about the Hong Kong stock market, especially the large market value stocks and some Internet stocks in Hong Kong stocks.
In his opinion, first of all, the value stocks of Hong Kong stocks are basically leading enterprises or central enterprises. These assets are of high quality and can withstand the fundamental pressure most, so the risk is small, including leading companies in telecom operators, real estate, banking, insurance, energy, coal and other industries. The business of Hong Kong stock Internet companies is deeply embedded in China’s economy, the pattern is clear, and its core business barriers are still relatively solid.
Secondly, the underlying price of Hong Kong stocks is low or the price is completely cleared. Hong Kong value stocks are cheaper than A-share value stocks, and the corresponding dividend yield remains at a very high level. Internet stocks in Hong Kong stocks have suffered the aggregation of various pressures, and the valuation has fallen to an undervalued level.
In addition, the trading risk of Hong Kong stocks is fully released and the trading is not crowded. With the gradual release of fundamentals, regulatory level and liquidity pressure, Hong Kong stocks deserve attention.
