Securities Times reporter Pei Lirui
Recently, the A-share market has stabilized and rebounded. As of the close on June 8, the Shanghai Index has risen for 4 consecutive trading days, closing at 3263.79 points.
From the low point of 2863.65 on April 27, the rebound rate of this round has been nearly 14%.
Driven by the overall recovery of the market, many funds have also begun to quickly "fill the pit".
According to Wind data, from April 27 to June 7, about 450 equity funds rose by more than 30% in the range, and some of the funds with heavy positions in new energy rebounded by nearly 50%, which can be called "rebound pioneers".
In addition, 246 funds in the whole market have successfully "recovered lost ground", and the income during the year has been successfully recovered from losses.
Some funds rebounded nearly 50%
Wind data shows that from April 27 to June 7, about 450 equity funds in the whole market (the combined statistics of each share) increased by more than 30%, of which about 70 equity funds rebounded by more than 40%. Funds such as Hui Intrinsic Value, Yinhua Lexiang, and Penghua Shanghai-Hong Kong-Shenzhen Emerging Growth have even rebounded by nearly 50%.
These "rebound pioneers" are mostly funds that hold heavy positions in new energy stocks.
Taking Yinhua Zhihui’s intrinsic value as an example, the fund’s top five heavyweight stocks as of the end of the first quarter were LONGi Green Energy, Tianqi Lithium, Tibet Mining, Ganfeng Lithium, and China Mining Resources, among the top ten heavyweight stocks. More than half are new energy stocks.
From April 27 to June 7, the fund's range rose by more than 48%.
From the perspective of this year, Wind statistics show that as of June 7, 343 equity funds have achieved positive returns this year, of which 246 products have negative returns for the year before April 27.
That is to say, these 246 equity funds have completed the process of "turning losses" after the recent rebound, and their income has returned to positive during the year, successfully "recovering lost ground".
(Note: New funds established since April 27 have been excluded)
Among these funds that "recover lost ground", there are many products helmed by star fund managers such as Qiu Dongrong, Sun Di, Jiang Cheng, Tan Li, and Han Chuang.
Taking Zhonggeng Value Pilot managed by Qiu Dongrong as an example, as of April 27, the fund's annual income was -2.28%, but as of June 7, the fund's annual income had reached as high as 13.42%, not only successfully "filling the hole" ”, and accumulated a good profit.
The first quarterly report shows that the fund has mainly increased its positions in Internet stocks such as Meituan and Kuaishou. Among them, Meituan, the largest holding stock, has rebounded by more than 75% since mid-March, contributing substantial returns to the fund.
For another example, GF Advanced Manufacturing managed by Sun Di had a profit of -7.76% for the year as of April 27, but after a rebound, the profit for the year has risen to 14.19%, with a large rebound.
Some fund managers increase their positions in advance
So, looking back on the roller coaster market this year, what actions have fund managers done?
Sun Di, manager of GF Advanced Manufacturing Fund, recalled that after the establishment of GF Advanced Manufacturing on March 1, the market was affected by multiple internal and external unexpected factors, causing the equity market, especially the advanced manufacturing sector, which the fund mainly invests in, to decline. According to the established strategy, it adopted a more cautious strategy of opening positions, but the net value also experienced a certain retracement.
With the sharp adjustment of the market, Sun Di's view of the market gradually became optimistic at the end of April, and then increased his position in early May, mainly deploying industries with high prosperity and a sharp decline in the early stage. The subsequent market also gradually verified his judgment. The net worth of the fund rose significantly.
"On the one hand, we expect that in the next two to three months, we can see the peak of US inflation expectations and US bond interest rates, the easing of domestic epidemic prevention and control pressure, the continued efforts to stabilize growth, and the frequent favorable regulatory policies. The external environment will gradually improve; on the other hand, as the market adjusts, many high-quality companies have seen their stock prices significantly oversold, and their valuations have returned to a more attractive range, and there are significant investment opportunities in the medium and long term.
Zhao Xiaodong, director of equity investment at Guohai Franklin Fund, said that the gradual stabilization of the economy in the second and third quarters of this year is a high probability event, and there is a high probability that the market will rebound to a certain extent in half a year.
Therefore, he carefully selected some stocks during the market correction to replace unsatisfactory positions in the portfolio, mainly adding some consumer stocks and taking profits in some financial stocks due to the recovery of demand.
In addition, another fund manager in Shanghai revealed to the Securities Times reporter that he mainly adjusted his equity positions in three time periods this year. Mainly the beneficiary varieties of rising energy and the leading building materials with limited supply; secondly, after the escalation of the epidemic in Shanghai in early April, they reduced their holdings in East China; thirdly, they increased their positions in Shanghai after the epidemic improved in late April. Targets with better cost performance are dominated by oversold growth stocks.
Overall, equity positions have increased compared to the beginning of the year.
Market outlook pays attention to fundamental verification
Shanghai Investment Morgan Fund believes that from a fundamental point of view, with the accelerated pace of resumption of work and production and the accelerated implementation of policies related to stabilizing the economy, the domestic economy is expected to return to the expansion range; from a technical point of view, major indexes have closed for many days. Above the 60-day moving average, if the market can maintain a stable position this week, the short-term upward trend of the market may be sustainable; from the perspective of valuation, the current historical quantiles of the price-earnings ratio of the ChiNext Index and the Science and Technology 50 Index in the past ten years are only 36.38% and 9.60%, the allocation value is outstanding.
Specific to the theme of the sector, the Shanghai Investment Morgan Fund suggested that it can continue to pay attention to the new and old infrastructure under steady growth, the automobile and new energy-related fields stimulated by the New Deal, and the related opportunities of consumer services that may usher in a major reversal.
Sun Di believes that the various factors that suppressed the market in the early stage are still gradually improving. He is generally optimistic about the market, and will focus on the long-term transformation trend of China's economy, the long-term space of the industry, the short-term demand and prosperity, and the friendly policies. Excellent companies with reasonably low valuations, including sub-sectors such as photovoltaics, electric vehicles, and semiconductors.
But some fund companies expressed a relatively cautious attitude.
For example, Bosera Fund believes that the time and space of this round of oversold rebound has been fully demonstrated, and the follow-up market focus will be switched to fundamental verification.