According to a report by Caixin on March 20 (Reporter Shen Shuhong), the latest data from third-party platforms shows that the private equity stock position index climbed to 77.12% last Friday, reaching a new high for the year.

In terms of the intensity of positions, large-scale private equity funds have the most significant increase, with 5-10 billion scale private equity positions rising by 11.66 percentage points compared to the end of 2024, and those over 10 billion scale increasing by 6.53 percentage points, indicating a more optimistic expectation from leading institutions for the future market.

Among many well-known private equity funds, some have reduced their positions in US stocks due to the recent declines, which have caused a certain negative contribution to products; the current company has lowered its US stock holdings to actively grasp the technology growth mainline in A-shares and Hong Kong stocks; some private equity funds maintain a relatively high stock position but firmly refuse to 'bet' on a specific market style; other private equity funds have reduced their holdings in the overheating robot sector and increased their allocation in Hong Kong's Internet.

The stock private equity position reached a new high for the year.

According to the latest data from Private Equity Ranking, as of March 14, the private equity stock position index rose to 77.12%, increasing by 1.15% from the previous week, reaching a new high for the year.

In fact, since the beginning of 2025, the willingness of stock private equity to increase positions has continued to heat up, with the position index showing a steady upward trend. Especially during the period from February 14 to March 14, the stock private equity position index rose rapidly from 73.54% to 77.12%, an increase of 3.58 percentage points in just one month, reflecting the strong willingness of stock private equity to increase positions in the current market environment.

From the specific distribution of positions among stock private equity, fully invested private equity accounts for the dominant position. As of March 14, 57.49% of fully invested (positions over 80%) stock private equity funds dominate nearly half of the market; meanwhile, some private equity institutions still maintain a relatively stable strategy, with a medium position (positions between 50%-80%) accounting for 25.53%; low positions (positions between 20%-50%) and empty positions (positions below 20%) account for only 11.80% and 5.18% respectively. Overall, the bearish sentiment among private equity institutions has significantly diminished.

However, the position allocation of private equity firms of different sizes shows significant differentiation. Small-scale private equity (below 1 billion) has the highest positions and demonstrates strong aggressiveness; large-scale private equity (above 5 billion) follows closely, reflecting a conservative yet proactive allocation strategy; while medium-sized private equity (1-5 billion) has relatively low positions, displaying an overall cautious style.

Specifically, the position index for private equity above 10 billion is 76.80%, for 5-10 billion private equity it is 75.88%, for 2-5 billion private equity it is 69.47%, for 1-2 billion private equity it is 73.29%, for 0.5-1 billion private equity it is 75.94%, and for 0-0.5 billion private equity it is 79.57%.

In terms of the intensity of shareholding, large-scale private equity has the most significant increase, with positions in the 5-10 billion range rising dramatically by 11.66 percentage points compared to December 27, 2024, and private equity above 10 billion increasing by 6.53 percentage points, reflecting institutions' more optimistic expectations for the future market. Small-scale private equity follows with an increase of 3.82% and 3.78% for the 0.5-1 billion and 0-0.5 billion categories respectively, continuing their proactive market participation style. In contrast, the operations of medium-scale private equity show clear differentiation, with the 1-2 billion scale slightly increasing positions by 2.51%, while the 2-5 billion scale unexpectedly reduced positions by 2.48%, reflecting a cautious attitude among medium-scale institutions in the current market environment.

The proportion of fully invested private equity firms above 10 billion has already exceeded half. As of March 14, the proportion of fully invested (positions over 80%) private equity in stocks has reached 50.06%; the proportion of medium positions (positions between 50%-80%) is 36.59%, indicating that some of the private equity firms above 10 billion maintain a certain flexibility while actively positioning; while the proportions of low positions (positions between 20%-50%) and empty positions (positions below 20%) in stock private equity are only 11.25% and 2.10% respectively, reflecting a generally low bearish sentiment among private equity firms above 10 billion.

Latest adjustments in the strategies of renowned private equity firms.

Currently, many market participants are discussing "East Rising and West Falling". Against this backdrop, many private equity firms are refocusing their attention on Hong Kong and U.S. stocks.

Taking Panjing Investment as an example, the company has currently reduced its holdings in U.S. stocks in order to actively grasp the main line of technological growth in A-shares and Hong Kong stocks.

The company revealed that the recent decline in U.S. stocks led to some negative contribution from the original U.S. stock position of its products. "After the Spring Festival, A-shares and Hong Kong stocks quickly switched to the domestic technological growth main line. In the face of this market change, we adjusted the original configuration structure of the products at the earliest opportunity. During the adjustment process, the market showed a strong upward trend, so the pace did not completely fit. Currently, the products are also actively taking a series of measures to optimize the investment portfolio to better adapt to market changes."

Panjing Investment is also making bottom-up reverse layout of fundamentals and policy resonance varieties. "Currently, some high-quality symbols in the Consumer, Cycle, and Manufacturing Sectors have fallen to historical low valuation, but their fundamentals are expected to continue improving against the backdrop of inventory cycles bottoming out and accelerated domestic substitution." To this end, the company is gradually increasing its Shareholding in such Assets and is diversifying its industry allocation to reduce volatility, creating a more resilient investment portfolio.

Xuanyuan Investment's allocation leans towards smart driving, ARVR, AI Infrastructure in China, and other industries that will continue to have fundamental catalysts within the year, while also appropriately participating in the thematic development of 0-1 technology branches such as Solid State Batteries, Siasun Robot&Automation motion control, and electronic sensory skin.

"Among high-quality companies in the Consumer Electronics and Internet fields, we will maintain attention and flexibly adjust allocation ratios," Xuanyuan Investment stated.

Regarding one of the hottest sectors this year—robots, different private equity firms have different choices. A private equity firm in East China admitted that it currently maintains a high allocation in this sector. In contrast, at the end of February, Panyao Assets reduced its positions in the overheated robot direction while increasing its allocation in Hong Kong stocks in the Internet sector. "Even so, currently, the Technology Sector will still be a key focus for us."

In addition, regarding the Military Industry direction that is undergoing logical restructuring, Panyao Assets has previously increased its position ratio and is expected to consider further increasing the allocation ratio when prices are low.

Given the belief that this round of market rebound is sustainable, Fengling Capital maintains a relatively high Stocks position but will moderately avoid those enterprises with grand narratives that do not stand up to careful scrutiny of their competitive landscape and valuation.

"Our focus is still on analyzing the industry competitive landscape and the relative competitive advantages of various enterprises, etc., to determine the medium to long-term value center of enterprises, thereby selecting more cost-effective investment symbols," Fengling Capital stated. In the short term, betting on a certain market style may yield significant excess returns in stages. However, in the long run, the success rate of frequently betting on changes in market styles is not high.

Technology stocks remain a future investment hotspot.

According to information gathered by the financial news agency, the technology industry, represented by AI, remains the focus of well-known private equity firms for future allocation.

"The value reassessment driven by DeepSeek has not yet ended, and the logic of global capital reassessing China's technology assets remains valid," noted Panjing Investment. They pointed out that the domestic industry upgrade centered around AI technology is transitioning from concept to commercial realization, driving the reconstruction of the global Industry Chain. In the future, more companies in the Industry Chain will shift from thematic speculation to genuinely "delivering performance," focusing on leading companies with technical barriers and strong performance verification capabilities. In the medium term, the tech growth style is expected to see a trend of performance dominance again.

Panyao Assets will continue to focus on the computing power direction. The recent short-term disturbances in computing power have put pressure on the stock prices of most companies in the industry, but the company believes that the medium- and long-term logic continues to strengthen, and the short-term disturbances present a buying opportunity.

In Xuanyuan Investment's view, regarding AI, domestic capital expenditures continue to rise, but the slope of the rise will create disturbances with more open-source from Deepseek. Whether in overseas applications or domestic Infrastructure, it is necessary to properly manage the relationship between asset price expressions in the short, medium, and long terms.

Regarding intelligent driving, the company stated that in the coming months, more manufacturers will join the low-price intelligent driving equality initiative. The company will continue to track and focus on the Industry Chain, as well as the potential optimization in the supply side of traditional industries and intermittent supply-demand mismatches in the Industry.

Editor/Somer