□ wan yu, a reporter of this newspaper
Haitao Wang, Master of Business Administration. He is currently the Senior Managing Director and Assistant General Manager of GF Fund Management Co., Ltd. He has served as investment manager of BusinessExcellence, Inc., Vice President of Global Wealth Management Department of Morgan Stanley Asia Limited, Assistant Director of Fund Management Department of Xingquan Fund Management Co., Ltd., Fund Manager, Deputy Director of Special Account Management Department, Investment Manager, Director of New Third Board Department and Investment Manager.
"If one day, the fund holders open my portfolio, I hope that everyone can feel a kind of 'righteousness', each target is a high-quality growth enterprise, are enterprises that can create value for shareholders, and have a relatively long-term investment logic."
From Wharton to Morgan Stanley, from Industrial Securities Global to GF Fund, after 18 years of ups and downs in the domestic and foreign markets, Wang Haitao's deepest experience is that the core source of investment returns is the continuous growth of corporate value. In his framework, "value investing" is not simply buying "absolutely" undervalued varieties, but to discover companies whose current prices are lower than their long-term value.
Follow in the footsteps of value investing
Mention the name Wang Haitao, perhaps the fund holder is not familiar with it, but in the investment circle, he is a low-key power faction. He has been in the securities industry at home and abroad for 18 years, worked as an itater as an itmisian in his early years, and later worked in a foreign-funded institution for 4 years. After returning to the mainland in 2019, he was responsible for special account investment for many years and was recognized by institutional customers with good performance and steady style.
Deeply influenced by the orthodox value investment concept, Wang Haitao prefers industry leaders with deep "moats", especially those with growth. He divided the listed companies he focused on into three categories: the first is high growth and low valuation, PEG less than 1, he calls this type of stock "excellent students"; the second type is high valuation and high growth, PEG is greater than 1, called "special students". There is also a category of stocks that use mean reversion as the main logic and have the characteristics of improving fundamentals, which are regarded as diligent "ordinary students".
From the perspective of historical positions, Wang Haitao likes the target with strong certainty, and the position is mainly based on the stable type of big white horse or leading enterprise. From the perspective of the distribution of its position market value, the position of more than 100 billion yuan accounts for more than 50%, if you count 50-100 billion yuan, the proportion of positions is about 70%. At the industry level, his portfolio is more consumer, globally competitive technology and advanced manufacturing.
Haitao Wang's career experience spans both industrial and investment fields. He has worked as an IT business manager, but also has 4 years of overseas investment experience, and has become a steady value investor in many years.
Wang Haitao, who studied computer science as an undergraduate, worked in a foreign company for several years after graduation, and then co-founded an IT company with friends and achieved good business results. This experience has given him a personal experience of enterprise operation and management, which is of great help to him in his future research on enterprises to open up ideas.
Later, he came into contact with securities investment by chance and developed a strong interest. In 2003, he chose to study value investing at the Wharton School in the United States, and after graduating in 2005, he joined Morgan Stanley Asia Limited as vice president of global wealth management, allocating global assets to corporate and high-net-worth clients. Here, he put the concept of value investing into practice, an experience that had a profound impact on his later career.
Wang Haitao said that in the years when he invested overseas, the core work he did summed up was: fundamental stock selection. At that time, the investment scope involved was relatively wide, in addition to A shares, other markets can do, especially Hong Kong stocks, US stocks, he has done excellent companies in all walks of life, excellent business models have been sorted out. At the same time, overseas markets can be short, so that he can learn to understand valuation from different perspectives, but also let him be in awe of the market.
In 2009, Wang Haitao joined Xingquan Fund, first managing public funds, and after 2011, he switched to a special account and QFII portfolio. During this period, he completed the integration of overseas orthodox value investment concepts with the mainland market, and gained a deeper understanding of A-shares.
"For example, overseas markets are not optimistic about fixed increases, but most mainland investors recognize fixed increases, and fixed increases often have a positive impact on stock prices." For example, in the growth stocks, many A-share companies are in the stage of rapid growth, and after doing mergers and acquisitions, the performance has indeed grown rapidly. Wang Haitao found that investment still needs to adapt to different market environments, and it is necessary to look at the problem from an empirical point of view, and cannot be too rigid to the academic school.
During his tenure at Xingquan Fund, Wang Haitao participated in Buffett's shareholders' meeting eight times. At the world's most eye-catching investment event, he listened to Buffett's philosophical investment experience. Combined with the A-share market and his own practice, he has more thinking and understanding, and after returning to China, he has written a number of visiting notes to share the enlightenment he has gained.
In September 2018, Wang Haitao joined GF Fund to manage different types of products such as special accounts and social security portfolios. At this fund company, which specializes in growth stock investment, Wang Haitao has more important gains, and he has further clarified the relationship between value and growth. "The two are not opposed, and the best stocks are in line with both value and growth standards."
On the basis of continuously absorbing the experience of predecessors and constantly summarizing and thinking, Wang Haitao's understanding of investment is also constantly improving and iterating. Today, his value investment system is richer: "Value is not a simple mean reversion, nor is it simply buying something at a low price." The objects of value investment include two types of enterprises: the first is the enterprise that can create value for shareholders for a long time but is undervalued, and the second type is the mean reversion and the dilemma reversal enterprise. ”
Undervaluation is the "bumper" of value investing
If value is the core of Wang Haitao's investment framework, then "undervaluation" is his direct entrance to this core. No matter what stage of his career he is in, valuation has always been one of wang haitao's most important factors. He has the principle of "three noes": one is not to buy companies that cannot calculate PE; the other is not to buy stocks with PE greater than 1 and PE more than 40 times; and the third is not to buy high-volatility industries.
"In the medium and long term investment income, although a large part comes from the growth of performance, the cost of buying is also an important factor in determining future yields." If the cost of buying is too high, the expected rate of return will not be ideal, and it is difficult to control fluctuations. Wang Haitao explained his "three noes" principle in this way.
"He is a very orthodox value investor and has a steady style, which is inseparable from his educational background and professional experience." A FOF fund manager who is familiar with Wang Haitao introduced that from the exchange, it can be felt from the exchange that Wang Haitao has relatively high requirements for the quality of the enterprise, values the cost performance, and he is not willing to take too much risk caused by overestimation.
For value investors, "undervaluation" is like a solid "bumper." Choosing a company with excellent quality in an undervalued enterprise is more likely to obtain the "Davis double-click" brought about by the growth of enterprise value and valuation improvement.
Therefore, when Wang Haitao selects stocks, he first screens enterprises whose valuation is within the acceptable range, and then makes a quantitative analysis of the quality of enterprises from the perspective of revenue growth rate and net profit growth rate of enterprises. From a qualitative point of view, Wang Haitao attaches great importance to the company's market space, business model, "moat", governance structure, management, etc., and comprehensively selects investment targets with long-term value.
"I believe that the business model, the sustainability and stability of corporate earnings are the most important factors affecting valuations." To this end, Wang Haitao will spend most of his time on the research of the industrial chain, not only will conduct detailed research on listed companies, but also interview their upstream and downstream and competitors to better grasp the company's competitive position, corporate development trend and long-term value.
In the determination of valuation level, Wang Haitao is accustomed to benchmarking A-shares with overseas markets. That is, combined with the stage of the mainland industry and the development path of the enterprise, compared with the mature overseas enterprises, it is more reasonable to judge which stage the current enterprise is in and what valuation level is more reasonable. "I personally believe that this is part of the analysis of the competitiveness of enterprises, and it is also an effective basis for judging a reasonable valuation."
As far as the stage of enterprise development is concerned, Wang Haitao rarely buys companies from "1 to 10", he prefers companies in the "30-70" stage with strong growth certainty, which are often leading enterprises in various sub-sectors and have a deep "moat"; followed by companies with high growth rates and less expensive valuations in the "10-30" stage.
Multi-strategy to build a combined "back line"
Wang Haitao likes to play football, and he often compares a portfolio to a team, with forwards, midfielders, defenders, both offensive and defensive. If choosing stocks with long-term value from the perspective of underestimation is to find an effective and safe position when attacking, then the use of multiple strategies to balance the overall combination is the "back line" built by Wang Haitao.
Wang Haitao understands the importance of large-scale asset allocation and has accumulated rich experience. "I don't choose the timing frequently, but I adjust the proportion of stocks to bonds according to different macro environments." In addition, based on the multi-strategy management experience accumulated in the management of special accounts, he will also flexibly use strategies such as block trading, private placement, bond transfer, and strategic placement in the public offering portfolio in the future, hoping to provide more diversified sources of income for the portfolio, and also smooth the fluctuation of the portfolio to a certain extent.
At the level of industry allocation, Wang Haitao's idea is to be generally balanced and moderately deviated, and the deviation of a single industry position will not exceed 20%. "I hope that by building a balanced portfolio with low deviations in the industry, the stability and quality of excess returns will be higher, and therefore risk aversion will be better."
According to the attributes of different industries, he divided the 28 first-level industries into four categories, including large finance, technology manufacturing, consumption stability, real estate and cyclical categories, and basically maintained the neutral allocation of the four major industries relative to the benchmark, making the source of income more dispersed.
On this basis, he will combine the macroeconomic and market environment to determine the proportion of different industries to moderately deviate from the industry beta gains. For example, when the market is in the offensive stage, the ratio of technology manufacturing and cyclical classes is moderately increased; when it is necessary to improve defense, the varieties of consumption stability are increased.
From the perspective of historical positions, Wang Haitao naturally does not like to buy high-volatility industries. For example, there are few non-ferrous and military industries in his positions, and he allocates more mainly consumption, as well as globally competitive technology and advanced manufacturing. These three directions seem to be different, but in fact there are some commonalities.
"First of all, the demand in these industries is long-term, sustainable and less likely to be disrupted. Second, in these industries, it is easier to find companies whose growth rates match valuations. Third, these industries do find a number of great companies that have proven themselves in history. Wang Haitao introduced.
Looking back on the eighteen years, from overseas study to Morgan Stanley, from Industrial Securities Global to GF Fund, every step he has taken is closely related to the beat of the iteration and evolution of value investment concepts. From November 22, the GF Large-Cap Value Mix, which is to be managed by Wang Haitao, will be sold through China Merchants Bank, GF Securities and other channels. The product will focus on large-cap value stocks that are leading in the industry, have good and stable growth, and are relatively undervalued.
This article originated from China Securities News