In the volatile market environment this year, many products under the tens of billions of private equity companies have suffered substantial losses.

　　Recently, the "Letter to Investors" of Guangdong's 10 billion private equity firm Zhengyuan Investment has attracted market attention.

The representative products managed by its fund manager Dai Lujing have withdrawn more than 50% this year, and the net value of several new funds is around 0.7 yuan and 0.6 yuan.

In this regard, the company's general manager Liao Maolin and fund manager Dai Lujing apologized to investors and responded to why the company's products have different trends in net value.

Zhengyuan Investment made a decision to suspend the issuance of new products by the fund manager Dai Lujing and the subscription of new customers, and promised that the funds of the company's co-invested products would not be redeemed until the net value reached a new high.

　　In fact, nearly 78% of the tens of billions of private placements still lost money this year, and 26 of them lost more than 10%.

Not long ago, the news that a product of Shanghai's tens of billions of privately-owned Khiva assets suffered a sharp pullback and hit the warning line has also attracted attention.

This year's representative product has withdrawn more than 50%

Ten billion private equity urgently issued a letter of apology

　　Recently, Fund Jun learned from the channel that the "Letter to Investors" issued by Guangdong Zhengyuan Private Equity Fund Management Co., Ltd., a tens of billions institution.

　　"This is an overdue letter of apology. I originally planned to communicate with you after the net worth was restored, but I didn't expect it so far. I fully understand and empathize with investors' current mood." Zhengyuan Investment Fund Manager Dai Lujing said, "In the past few months, even if investors don't blame me, I have been in torment. In addition to the pain caused by my own withdrawal, more importantly, I have failed investors' expectations. Trust has brought losses to investors, which is completely contrary to my original intention, I am really very sorry, I am sorry everyone!"

　　In the "Letter to Investors", Liao Maolin, general manager of Zhengyuan Investment, said that since 2022, the market has been ups and downs, and the products managed by Zhengyuan have also fluctuated greatly, and the net value performance of products managed by different fund managers has changed. Differentiation, especially the net value of products managed by fund manager Dai Lujing has drawn back greatly this year.

"It has brought tremendous pressure to investors and partners who trust Zhengyuan, and as managers, we are very sorry."

　　The tens of billions of private equity investment in Zhengyuan has attracted market attention due to the large pullback of the company's representative products this year, and later staged a reversal drama, gaining more than a dozen points of income.

This private equity firm was established in October 2015. The core fund managers include Liao Maolin, Huatong, Dai Lujing, etc.

　　Funds have noticed that many private equity products managed by Dai Lujing have not performed well this year. Its representative products have withdrawn more than 50% this year, and the largest since its establishment has withdrawn more than 60%.

It is worth noting that he managed many new products established in the second half of last year, and the latest net value was around 0.7 yuan and 0.6 yuan.

Response to the reasons for the differentiation of the company's product net worth performance

Fund managers are relatively aggressive and their positions are concentrated

　　Liao Maolin also explained the reasons for the large performance gap between the company's products this year and the large pullback of fund manager Dai Lujingguan's products, "Zhengyuan platform shares a research team and the same stock pool, therefore, customers have different opinions on different fund managers. There are doubts and criticisms about the differentiation of performance, which we fully understand and accept with an open mind. However, different fund managers of Zhengyuan have their own investment strategies, and they have independent decision-making power for the products they manage. The portfolio of fund managers’ holdings is different, which leads to different trends in the net value of the products. The fund manager Dai Lujing has a relatively aggressive style, and his positions are concentrated. In the first half of the year, the main holdings encountered black swans one after another, resulting in a large drawdown of the product’s net value.”

　　Liao Maolin said that the development goal of Zhengyuan Investment is to create a highly competitive platform-based private equity.

In the process of achieving this goal, the risks behind the rapid growth of fund manager Dai Lujing's management scale have been ignored.

"The outstanding performance of fund manager Dai Lujing's products in 2019-2021 has attracted many investors to subscribe, and the rapid expansion of product scale has brought temporary discomfort to his investment strategy. In the process of learning and adapting, It also coincided with the extreme market environment, which failed to stabilize the net value of the product, resulting in losses for many customers. We have carried out a profound reflection on this."

　　Dai Lujing, manager of Zhengyuan Investment Fund, also said in the letter of apology that his investment strategy is based on bottom-up, in-depth research on companies, long-term heavy holding of high-quality companies, and sharing of investment dividends in the growth process of high-quality companies, products The style has always been to operate with high positions.

There is no big timing based on the macro environment.

"Before 2021, my main investors were my family and friends. After 2021, the scale of products expanded rapidly, which was not suitable for my previous style of centralized shareholding and flexible trading. The management was not flexible and harmonious enough, and I did not fully consider it. The deviation of short-term price from long-term value.”

　　"In my investment system, I have always focused on the long-term value of high-quality companies, and I don't have a deep understanding of the drastic changes in the short-term macro environment. This deficiency has resulted in me not taking quick protection measures for the investment portfolio based on changes in short-term factors. The structure of the portfolio And position adjustment is not quick and timely. At the same time, the frequent black swan events in 2022 will greatly affect the holding sector, which amplifies the inadequacy of my bottom-up investment strategy, resulting in a sharp drop in the net value of products in the short term.” Dai Lujing said.

Suspension of new issuance and subscription of fund manager products

　　Under this circumstance, Zhengyuan Investment has decided to suspend the issuance of new products of Dai Lujing, the fund manager, and the subscription of new customers, so that it can concentrate on managing the existing issued products.

Liao Maolin said that Zhengyuan will take this as a warning in the future, strengthen the consideration of the adaptability of fund managers' management scale, optimize the fund manager selection mechanism, reasonably evaluate the strategic capacity, and rationally control the pace of fund manager scale expansion.

　　In addition, he also said that he was aware of Zhengyuan's lack of post-investment services and failed to communicate with investors and partners in a timely manner when the net value fluctuated, resulting in a poor investment experience.

"In the future, we will enhance customer service awareness and answer investors' questions in a timely manner."

　　Zhengyuan Investment and Dai Lujing also made commitments: First, the 20.5 million yuan that Zhengyuan has invested in Dai Lujing products since the beginning of this year will not be redeemed until the net value of the products under its management reaches a new high; second, the future of the funds that Dai Lujing himself has invested in. No redemption within one year, and advance and retreat with investors.

　　Liao Maolin also said that in the future, capacity building in the following areas will be strengthened:

　　(1) Strengthen the construction of investment and research teams, build a platform-based investment and research system, and strengthen investment and research strength; optimize the stock pool system, refine position restrictions, and increase the regular adjustment mechanism.

　　(2) Strengthen the construction of the company's various systems, strengthen the company's IT capacity building, and strive to establish the system on the process and the process on the system.

　　(3) Strengthen the construction of the risk control system, conduct risk control on the portfolio on a regular basis, conduct stress tests and scenario analysis for extreme market conditions, reveal the potential risks of the investment portfolio in a timely manner, and improve the product performance analysis.

　　(4) Improve the fund manager management mechanism, optimize the fund manager selection system and incentive and restraint mechanism, rationally plan the management scale of fund managers, and realize the platformization and diversification of the management mechanism.

　　Dai Lujing also said that the lessons brought by this retracement are huge, and it will also inspire him to continue to work hard and improve himself.

"In the future, in the process of portfolio management and position adjustment, on the basis of maintaining in-depth research and high-position long-term holding style, I will add timing and timing of individual stocks for position adjustment. Buying cheap is as important as buying right. The ability of the product portfolio to resist systemic risks will bring holders a better holding experience.”

78% of 10 billion private placements still lose money this year

Some private equity products hit the warning line

　　In fact, despite the previous market rebound, many private equity firms with tens of billions of yuan still suffered performance losses this year.

According to data from the Chaoyang Perpetual Fund Research Platform, as of August 12, the average loss of 95 tens of billions of private equity institutions in the market since the beginning of this year was 4.69%.

　　Among them, 21 10 billion private equity companies have turned their products into a positive number on average since the beginning of this year; but 74 10 billion private equity companies are still losing money this year, of which 26 have lost more than 10% of their products since the beginning of this year, including Danshui Spring. Investment, Hongcheng Investment, Shiva Assets, etc.

　　It is worth noting that Shiva Assets has recently attracted market attention because of the news that a product managed by one of its fund managers has suffered a sharp drawdown and hit the warning line.

　　Data shows that as of August 5, 2022, the cumulative net value of the product was 0.8045 yuan, a loss of nearly 20% since its establishment; and its loss this year has reached 37.88%, with a maximum drawdown of more than 60%.

It is understood that the fund manager of this product has bought a lot of real estate property stocks in his positions, but the property and real estate stocks have fallen sharply in the past two years, which has caused the net value of the product to drop a lot.

　　Fund Jun also noticed that the fund also issued an announcement in August this year that the net value of the fund unit reached the warning line.

(China Fund News)