On April 16th, several fund managers including Qiu Dongrong from Zhonggeng Fund, Lan Xiaokang from China Europe Fund, and Lei Tao from Debon Fund disclosed their Q1 reports on products under management, and shared their latest insights into the highly anticipated markets of artificial intelligence and resource products in the quarterly reports.
The above-mentioned fund managers believe that a new round of economic upward cycle has begun, and high-quality companies are gradually emerging from undervaluation and gaining valuation premiums. The equity market is facing systematic allocation opportunities.
The latest position adjustment and stock exchange route exposed
On April 16th, Zhonggeng Fund disclosed the first quarter reports of Qiu Dongrong's five products under management. Take the Zhonggeng Value Pilot, Qiu Dongrong's largest product in management, as an example. Compared with the end of last year, this product reduced its position in the first quarter of this year in China Hongqiao, COSCO Haineng, China Overseas Development, Meituan-W, Xiaopeng Auto-W, Jiacang Saiteng, Green Leaf Pharmaceutical, Chuanyi, Kwai - W, Yuexiu Real Estate.
Overall, there has been no significant change in the heavy holdings of Zhonggeng Value Navigation, but some of the heavy holdings of Zhonggeng's small cap value have undergone significant changes. Qiu Dongrong significantly increased his holdings in Poly Development in the first quarter, and the stock has jumped to become the third largest heavy holdings in the small cap value of Zhonggeng, accounting for 6.02% of the fund's net asset value.
Compared with the end of last year, the China Europe Dividend Enjoy Flexible Allocation Hybrid, which adheres to the value investment strategy of Blue Xiaokang Management, reduced its holdings in Zijin Mining and China National Offshore Oil in the first quarter, and increased its holdings in China Merchants Shipping, Sany Heavy Industry, Huatai Securities, Sinoma International, China Shipbuilding, Zhaojin Industry, Jiuli Special Materials, and China National Heavy Duty Truck.
Lei Tao, a fund manager who excels in technology track investment, also disclosed the first quarter reports of some products under management on April 16th. Taking the example of the flexible allocation of stable and profitable growth managed by him and fund manager Lu Yang, compared to the end of last year, the fund increased its holdings in Kunlun Wanwei, Zhonghua Online, Softcom Power, and Century Tianhong in the first quarter, while Shenzhou Taiyue, Shanghai Film, Worth Buying, Zhangyue Technology, Shengtian Network, and Zhengtong Electronics became new heavy holdings in the first quarter.
Generally optimistic about resource stocks
"Looking back at the past, the subtraction and addition of economic fundamentals and risk levels have been done for many years, and the weight of real estate and local debt risks has been reduced after years of subtraction. The addition of productivity improvement and breakthrough bottlenecks is continuing to advance, and some areas have achieved results. The layout of trade, production capacity, resources, etc. is increasingly facing the world to increase the safety threshold." Qiu Dongrong said that the equity asset adjustment time is long and large enough, the valuation level is low but the risk compensation is high, the cross period investment risk is low, and it has a strong right skewed distribution feature, making it the most risk bearing asset category.
Since the first quarter, the stock prices of resource stocks have shown strong performance. Lan Xiaokang believes that in the context of anti globalization, the macroeconomic aggregate is facing challenges, but the economic structure is shifting more towards manufacturing, making physical consumption resilient. However, the supply of upstream minerals faces many constraints such as underinvestment, environmental protection, and labor, so high prices and high profits in the resource sector are expected to be sustained in the long term. Therefore, we will continue to insist on investing in resource stocks. For gold assets, from a long-term perspective, they can contribute to returns while also potentially preventing the risk of high US dollar debt.
When it comes to investment opportunities in the artificial intelligence (AI) industry, Lei Tao said that to this day, there is still no sign of a slowdown in the technological innovation trend brought about by this round of AI. Both current leaders and catchers are still actively embracing this technological revolution. "We believe that a very important variable this year comes from the general improvement of the capabilities of domestic large model companies and the real implementation of related vertical scenarios by many application product companies, so that more people can benefit from this technological achievement. Overall, we still hold an optimistic attitude towards the trend of the artificial intelligence industry and related market trends." Lei Tao said that the commercial implementation and incremental space created by AI applications will be the most important focus of the market this year. In addition, attention will be paid to the rise of domestic power.
Qiu Dongrong said that he would focus on investment opportunities in three major areas: first, focus on technology stocks and Internet stocks in the Hong Kong stock market with strong business growth attributes and large future space; Secondly, focus on value stocks with high growth potential despite supply side contraction or rigidity, including resource companies and energy transportation companies represented by base metals, as well as real estate and finance in the overall value stocks; Thirdly, focus on high cost-effective companies with potential for demand growth and competitive supply advantages, mainly in industries such as electronics, machinery, pharmaceutical manufacturing, electrical equipment and new energy, agriculture, forestry, animal husbandry, and fishing.