With the gradual disclosure of the fund four Seasons News, star public offerings and star fund managers have published their transcripts one after another.

A number of funds managed by star fund manager Qiu Dongrong were the first to disclose quarterly results and explained the main reasons why he "carried" coal stocks in an unfavorable environment at the end of last year.

Qiu Dongrong is hard to carry coal stocks

Among the bigwigs in the public offering industry, a number of funds managed by star fund manager Qiu Dongrong took the lead in disclosing the fund's fourth-quarter report, which attracted market attention.

The reporter noticed that during the fourth quarter of last year, Qiu Dongrong reduced the core holdings of the funds he managed to a certain extent, while the total size of the four fund products he managed also shrunk considerably compared with the third quarter of last year, reducing funds by more than 3 billion yuan, or 16%.

The decline may be due to the star fund manager's overweight strategy for coal stocks, which performed poorly during the fourth quarter of last year.

Qiu Dongrong also explained the related situation of coal stocks dragging their feet at that time. He said that the performance in the fourth quarter of last year slightly outperformed the performance benchmark, due to the drastic adjustment of the government's coal industry policy in October, and the over-allocated energy sector of the fund showed a large pullback in a relatively short period of time, which was the main factor dragging down the relative performance of the fund. The poor performance of individual stocks of banks holding positions also made a negative contribution to the relative performance of the fund.

However, as a firm star fund manager, the short-term negative contribution of coal stocks did not change his original intention of overmatching. Although he also reduced his holdings, some coal stocks remained firmly among the core stocks in the fourth-quarter report.

In this regard, Qiu Dongrong believes that the logic of the allocation of coal, energy, and resources companies mainly lies in: first, the policy will continue to correct deviation, recognizing that in the process of pursuing the steady growth of the economy as a whole, that is, pursuing the growth of energy and resources, and in the process of slowly slowing down the economy, demand is still growing for a long time and continuously. Second, from serious surplus to supply-side reform, the market clearing situation is better, but the long-term capital expenditure of many commodities at home and abroad is insufficient, the supply contraction is relatively serious, the supply elasticity is insufficient, and the supply recovery does not happen overnight. the real and effective supply growth is often reflected in the upward price center caused by shortage. Third, in the medium and long term, under the influence of environmental protection and carbon neutralization factors, the supply constraints and marginal costs will rise in the medium term, the commodity price center will inevitably rise, and new applications continue to expand, resulting in a significant increase in the value of stock assets. In terms of market pricing and valuation, such companies are regarded as cyclical assets with extremely low valuation, good cash flow, low capital expenditure, high dividend yield and high expected return corresponding to the current price. Therefore, in the context of carbon neutralization, continue to be optimistic about the investment value of high-quality assets such as energy and resources.

Copy the bottom of Hong Kong stocks quickly after amending the contract

It is worth mentioning that although Qiu Dongrong reduced his positions in heavy stocks to a certain extent, his positions in a number of fund stocks were significantly higher than at the end of the third quarter of last year. This is true of the Zhong Geng value Smart Fund and the Zhong Geng value Navigation Fund. The proportion of stock positions increased from 80.26% and 92.33% at the end of the third quarter of last year to 83.04% and 94.41% at the end of the fourth quarter of last year, respectively.

In particular, the single 3.6 billion-fund Zhonggeng value pilot Fund is the most eye-catching of the four funds managed by Qiu Dongrong after the start of the year in 2022, with a return of 6.23% so far this year, in sharp contrast to the performance of many funds after the start of 2022.

Analysts believe that the substantial increase in stock positions may be due to the fact that although fund managers have targeted to reduce their core positions, especially some A-share varieties, fund managers have also substantially copied the bottom of Hong Kong stocks at the same time, resulting in a significant increase in overall stock positions due to Hong Kong stock factors. Data show that Qiu Dongrong bought a total of 666 million yuan worth of Hong Kong stocks in the Zhonggeng value pilot fund, accounting for about 18.28% of the fund's position. Qiu Dongrong's sudden operation of Hong Kong stocks has also triggered the market's attention to bottoming Hong Kong stocks.

A reporter from the Securities Times noted that the medium Geng value pilot Fund managed by Qiu Dongrong could not buy Hong Kong stocks before, so there was no description of the proportion of Hong Kong stocks held in the previous periodic reports disclosed by the fund.

Just two and a half months ago, that is, October 26, 2021, the medium Geng value pilot mixed Securities Investment Fund managed by Qiu Dongrong issued news that the general meeting of the fund's share holders passed a bill on related matters such as the medium Geng value pilot to change the scope of investment. According to the resolution, Zhonggeng value leads the increase in the scope of investment in Hong Kong stocks, with the proportion of stocks invested in Hong Kong shares accounting for 0% to 50% of stock assets.

In other words, after the fund contract allowed to buy Hong Kong stocks, Qiu Dongrong roughly began to copy the bottom of Hong Kong stocks in the last two months of last year.

Mr Yau said in his quarterly report that the Hong Kong stock market continued to be under pressure due to downward economic fundamentals, policy repression and US dollar outflows, and that the Hang Seng China Enterprises Index was even lower than it was at the time of the 2020 outbreak. In terms of valuation, the valuation level of equity assets has risen slightly, and the equity risk premium rate is at the upper neutral level. Based on the asset allocation strategy of equity risk premium, the fund maintained a relatively high equity allocation position during the reporting period, and began to invest in Hong Kong stocks after completing the necessary process of changing the investment scope of the fund. and gradually increase the allocation proportion of Hong Kong stocks.

The star fund manager stressed that the value stocks of Hong Kong stocks are basically leading enterprises or central enterprises, with very high asset quality and the best ability to withstand fundamental pressure, so the risk is less. At the same time, the value stocks of Hong Kong stocks corresponding to the value stocks in A shares are very cheap, but Hong Kong stocks are cheaper, and the corresponding dividend yield remains at a very high level, while the Internet stocks of Hong Kong stocks are under all kinds of pressure, and their valuations are reduced to undervalued levels. the risk is released more fully in the transaction, and the transaction is not crowded.