The Zhitong Finance App learned that recently, E-Fangda Fund Manager Zhang Kun disclosed the 2024 quarterly report on fund products under management. By the end of the first quarter of 2024, the total assets of the four funds managed by Zhang Kun were about 64.732 billion yuan, a decrease of 1.13% compared to 65.474 billion yuan at the end of the fourth quarter of 2023, a decrease of about 742 million yuan.
Specifically, with the exception of E-Fangda Asia Select Stock (QDII), which achieved month-on-month growth, the scale of the remaining 3 products declined. E-Fangda Blue Chip Select Blend, E-Fangda Premium Enterprise held the hybrid for three years, and E-Fangda Premium Select Blend (QDII) shrank by 1.42%, 3.72%, and 1.65%, respectively.
In terms of return, during the period, the net worth growth rates of E-Fangda Blue Chip Select Blend, E-Fangda Premium Select Hybrid, and E-Fangda Asia Select Stock were 0.91%, -0.42%, 0.79%, and 9.67%, respectively.
In terms of heavy stocks, let's first take a look at Zhang Kun's representative E-Fangda Blue Chip Blend. The top ten heavy-duty stocks are: CNPC (00883), Wuliangye (000858.SZ), Luzhou Laojiao (000568.SZ), Tencent Holdings (00700.HK), Guizhou Maotai (600519.SH), Yanghe (002304.SZ), Hong Kong Exchange (00388), Meituan-W (03690), Shanxi Fenjiu (600809.SH), and China Merchants Bank (600036.SH). Among them, Kweichow Moutai was reduced by Zhang Kun for 4 consecutive quarters and has now fallen to the fifth most heavily held stock; CNOOC has become the most heavily held stock for the first time. Furthermore, Yao Ming Biotech withdrew from the top ten heavy stocks, and for the first time, Shanxi Fenjiu entered the top ten heavy stocks selected by E-Fangda Blue Chip.
Looking at E-Fangda's second-largest premium selection mix, Zhang Kun greatly increased its holdings of Alibaba (09988). Alibaba, which increased its holdings by 3.28 million shares in the first quarter, increased its holdings by more than 18%, while Kweichow Moutai was slightly reduced and withdrew from the top three major stocks. Furthermore, Yao Ming Biotech and JD Group-SW (09618) withdrew from the top ten heavy-held stocks, and Huazhu Group-S (01179) and CNOOC were newly added to the top ten heavy-held stocks.
In addition, the heavy stocks selected by E-Fangda Asia have changed quite a bit. JD Group-SW, Pharmaceutical Biotech, and Sea Ltd ADR (SE.US) withdrew from the top ten heavy-held stocks, and the top ten new heavy-held stocks were Prada (01913), ASML.US (ASML.US), and Samsonite (01910).
Looking back at the first quarter of 2024, Zhang Kun pointed out that in the bond market, treasury bond yields, especially long-term treasury bond yields, declined markedly. In terms of the stock market, the first quarter was clearly divided. Industries with a high share of bond-like dividend assets, such as banking, petroleum and petrochemicals, and coal, performed well, while industries such as pharmaceuticals, biology, computers, and electronics performed relatively poorly.
Zhang Kun said, “We believe that judging from the stock asset performance of long-term treasury bonds and similar bonds, the market's risk appetite has been reduced to a very low level. This is reflected in giving a high level of weight to a static dividend rate when pricing, and is skeptical about growth, especially the long-term growth of enterprises. Under the simplified model, between company A with 5% dividend rate +1% growth and company B with 3% dividend rate +8% growth, most of the market at this stage prefer to choose company A, and such companies have also attracted the allocation of a large number of fixed income funds.”
“If we review the long history of the capital market, an important reason why stocks have a higher long-term yield than bonds is that stocks continue to grow, and the necessary condition for high-quality stocks is to have long-term continuous growth. Therefore, we believe that as stock investors, we should always give considerable weight to seek long-term growth. Although in the period of high-quality development, the basic probability that the company will continue to grow rapidly is declining, we should never give up looking for moderate and continuous growth, and growth can also be obtained by searching in different segmented structures.”
Zhang Kun believes that growth must be of high quality; it must not be brought about by extensive management or burning of money; it should be obtained with a reasonable marginal return on investment. It will pay great attention to the company's ability to control costs and expenses, the ability to control working capital, the ability to generate free cash flow, the ability to allocate capital, and the will to return shareholders.
Furthermore, from a valuation perspective, Zhang Kun said that in the past three years, due to continuous revisions in the market's long-term growth expectations, the valuation of Company A has increased, while the valuation of Company B has declined. Judging from the absolute and relative levels of various valuation dimensions (price-earnings ratio, market capitalization/free cash flow), the current stage of market pricing makes Company B attractive for long-term high-quality growth.