Can mass fund keep its advantage

In the past two years, active partial equity funds such as consumer funds and new energy funds have achieved fierce performance, and the top class funds have been hot in the market, causing concern, and the funds are constantly sought after. However, the heavy positions of these top class funds are now often hundreds of times of P / E ratio. On the other hand, in the past two years, the funds that stick to the undervalued traditional sector have not achieved outstanding performance and have been ignored by the market. There are many old star fund managers in the past. There is a serious division and tear. Whether the undervalued old funds will usher in the spring of style conversion has aroused discussion.

 

In the past, fund managers who were very well-known and had excellent performance, such as Cao Mingchang and Qiu Dongrong, no longer had outstanding performance in the past two years. The fund products they managed were also “voted with their feet” by investors, and the scale of the fund decreased significantly. In the whole market, they are chasing up the popular funds with high valuations of heavy stocks. Some people are worried about whether the market of these popular heavy stocks can last. From the perspective of underestimating conservatism, they should pay attention to the funds such as Cao Mingchang and Qiu Dongrong.

Can popular funds maintain their advantages? Underestimating old fund managers leads to discussion

Cao Mingchang works for China Europe Fund. At present, he manages many funds, such as China Europe value discovery, China Europe Fenghong Shanghai Hong Kong Shenzhen, China Europe Hengli, and China Europe potential value. Taking China Europe value discovery, which has the longest management time and the largest scale at present, as an example, the latest scale of the fund is 2.742 billion yuan, and its performance in 2020 is 16.84%, which is lower than the industry average level. However, it is different from the current top flow fund China Europe value found that the dynamic P / E ratio of most of the top ten heavyweight stocks was about 10 times, and only three of them were higher than 20 times. The dynamic P / E ratio of China Automotive Research Group, which had the highest P / E ratio, was 30.2 times. Most heavyweight stocks, such as Ningbo Huaxiang, China Taibao, Daya Shengxiang, Guanghui automobile, Xinhua insurance, vantage, fuana, etc., all had P / E ratios below 14 times.

 

Qiu Dongrong works for Zhonggeng fund. At present, his products include Zhonggeng value pilot, Zhonggeng small cap value, Zhonggeng value flexibility, Zhonggeng value quality and so on. Judging from Zhonggeng value pilot, which has the longest management time and the best performance, the fund’s latest scale is 2.338 billion yuan, and its performance in 2020 is 26.67%. Similar funds are also ranked behind the market median; The P / E ratio of shares held by Zhonggeng value leader is lower. Among the top ten heavyweight stocks, Jiansheng group and Zhenjiang share have a P / E ratio of about 30 times, others are all below 20 times, and even five stocks are below 10 times, such as LiuYao share, which is 9.8 times, and four real estate and banking stocks have a P / E ratio of less than 7 times, including sunshine city, Everbright Bank, industrial and Commercial Bank of China and Bank of Chengdu.

 

Cao Mingchang and Qiu Dongrong have made outstanding achievements in the past. From July 2006 to June 2015, Cao Mingchang managed Xinhua preferred dividend, with a return of 508% and an annualized return of 22.43%. They ranked the top 1 / 3 among the similar funds. From July 2008 to August 2009, Cao Mingchang managed Xinhua preferred growth, with a return of 77%, ranking the first among 194 funds of the same kind. Qiu Dongrong ranked first in 2014 From September 2014 to April 2018, when he worked for HSBC Jinxin fund, the peer ranking of the funds he managed was very high. The annual return rate of HSBC Jinxin from September 2014 to April 2018 was 34.66%, ranking first among 38 similar funds.

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