Wind data show that as of October 20, a total of 86 listed companies that had disclosed three quarterly reports appeared in the list of shareholders. Some "small and beautiful" companies with a market capitalization of less than 10 billion or even less than 5 billion yuan have been heavily bought by the fund. Looking at these fund products, we can see many fund managers who take value investment as the "label".
Recently, a number of fund managers who did not previously belong to the "growth camp" said they had a new understanding of growth and valuation tolerance. "there is no clear distinction between growth and value. In an environment of macroeconomic improvement and ample liquidity, growth is becoming a hard value." Said a fund manager in Shanghai.
"small and beautiful" companies are favored
According to Wind data, as of October 20, more than 200 listed companies in the two cities have released three quarterly reports for 2021. Among them, public fund products appeared in the list of circulating shareholders of 83 listed companies. The average market capitalization of these 83 listed companies is more than 40 billion yuan. If the giants with a market capitalization of 300 to 400 billion yuan, such as Muyuan shares, Wanhua Chemical, Oriental Wealth, and Mindray Medical, are excluded, the "good heart" of public offering funds is obviously on the small side, and even some companies with a market capitalization of less than 10 billion yuan or even less than 5 billion yuan have won the favor of public offering funds.
Take New Asia Electronics, which has a market capitalization of 3.85 billion yuan as an example, at the end of the third quarter, BoCom Schroeder trend priority mix, Oriental theme selection mix, Chuangjin Hexin quantitative multi-factor stocks, Yi Fangda reverse investment mix and other public funds appear in the company's top 10 tradable shareholders, holding 2.0094 million shares, 1.2548 million shares, 770000 shares and 263500 shares respectively. Public funds held together, naturally aroused market attention, since the release of the third quarterly report on October 18, New Asia Electronics rose 4.82% on October 19, on October 20, New Asia Electronics closed trading limit.
A reporter from the China Securities News found that some fund managers who are usually classified as "value investment" or "value with growth" are also interested in some "small and beautiful" listed companies. Take Wang Chong, a veteran of BoCom Schroeder Fund as an example, the BoCom Schroeder new growth mix and BoCom Schroeder selection mix appear on the list of the top 10 tradable shareholders of New Dazheng, holding 3.2022 million shares and 2.3948 million shares respectively. The latest market capitalization of Xindazheng on October 20 is 5.8 billion yuan. Similarly, Cathay Pacific Fund Cheng Zhou managed Cathay Pacific Juxin value advantage flexible allocation mix, Cathay Pacific Manufacturing two-year holding period mixed in the new Yangfeng's top 10 shareholders list.
Adjust the thinking of investment
Looking back on Wang Chong's investments so far this year, we can see that in the middle of this year, he was still "apologizing" to investors for missing some high growth opportunities. "We missed the sharp rise in hot industries such as new energy (cars), and we have been deeply reflecting on whether our research and understanding are not in place," Wang Chong wrote at the time. "or the pricing level of the market far exceeds the buying and holding standards within its own investment framework."
As the three quarterly reports of public offering funds have not been widely disclosed, the full picture of the latest holdings of value investment bosses has not yet emerged. However, there are many fund managers who are traditionally regarded as "value investors" who have recently spoken out about their latest understanding of growth and valuation.
Zhou Weiwen, a veteran of CEIBS fund investment who has always had a "belief" in value investment, said that the situation in emerging industries is often uncertain and that in order to grasp its core competitiveness, we should not only look at existing products, but also focus on its ability to expand. As for valuations, Zhou Weiwen said, he tends to evaluate corporate prices from a long-term point of view. "it is not that the price-to-earnings ratio of 10 times this year is undervalued, and that 100 times next year will be overvalued. It also depends on the long-term competitiveness and growth of the company." Zhou Weiwen said.
Dong Li, deputy director of the research department of Xingzheng Global Fund and fund manager, also has a new understanding of the tolerance of valuation. "for example, my biggest change in recent years is the increase in tolerance for valuations. Although it is still a 'bargain', the criteria for judging a 'bargain' have changed a lot. The understanding of 'expensive' and 'cheap' must be combined with the characteristics of the company's business model, product cycle, business stage and other factors. " Dong Li said when introducing his own adjustment and repair of the investment framework.
"growth is a hard value."
People in the industry have a lot of observation and understanding of the situation of "handing over sticks" between the new and the old in growth investment.
"first of all, the distinction between value and growth is not very clear, and fund managers switch flexibly between the two styles. Secondly, the growth opportunity has been adjusted to a large extent recently, and the value of growth has appeared after the adjustment, and there has been a transformation between the two. Third, for the growth of investment, many wind pursuers before is a gust of wind into, at this stage really see its investment value and opportunities of fund managers, are relaying into these areas. Said the head of the equity investment department of a fund company in Shenzhen.
A fund manager with outstanding performance in the first three quarters of this year told the China Securities News that his investment in growth opportunities is facing some adjustment. "the return on investment in growth stocks in the first half of the year is relatively rich, but the research on the opportunities of some individual stocks is not deep enough. In the third quarter of the adjustment has been carried out to adjust positions into shares, which is also in order to maintain better earnings this year. Since the second and third quarters, it has become more difficult to invest in growth, forcing early followers to re-examine their investments. " The fund manager said.
On the fund manager side of value investment, it is a new understanding of growth opportunities. "growth is becoming a hard value," said the Shanghai fund manager.
"the upsurge and pullback of growth opportunities, as well as fundamental changes, let me see its ability to cross the cycle and see where the top and bottom of its valuation in the secondary market are, so that the chances of success of the investment are significantly improved." A fund manager of a bank fund company told the China Securities News.