Under the violent volatility of the broader market, the star fund products managed by the tens of billions of private equity helms cannot stand alone.
According to media reports, on October 28, Lin Peng, the helmsman of the 10 billion private equity Harmony Huiyi, apologized to the holders in the "Letter to the Holders of the Harmony Huiyi Vision Series Products". He confessed that the past two years have been the most difficult time for him to work in the industry for more than 20 years, and he has been in a state of "mental torture" for a long time, and the net value performance of the product is also very disappointing.
Lin Peng analyzed that the biggest loss of his portfolio mainly comes from two blocks, on the one hand, the investment of Hong Kong stock Internet companies, on the other hand, the consumer electronics companies with the clearest research, the largest investment in research, and very good fundamentals.
He admitted that the excessive obsession with mean reversion and the lack of sensitivity to macro policy level have led to psychological and behavioral failure to manage the risk of the portfolio and to make sufficient plans for possible extreme risks, which is a profound lesson to be learned. In the past two years, his understanding of the pursuit of absolute returns in private equity has also deepened, and he will use instrumentalized products more rationally to manage risk exposure in the future.
The reporter of Securities Times E Company noted that Lin Peng was previously a star fund manager of Oriental Asset Management, and he established Shanghai Harmony Huiyi Asset Management Co., Ltd. in June 2020. After winning the private placement license, Harmony Huiyi's first private equity fund, the Harmony Huiyi Vision Series with a three-year closed period, sold for 15 billion yuan on the first day of sale in October of that year. Today, private equity funds, which were extremely optimistic about the market at that time, have also been affected by the violent volatility of the broader market.
According to private placement data, as of October 2022, the cumulative income of Harmony Huiyi is -10.55%, and the loss of income in the past year is more serious, reaching -19.13%, and the annualized return is -5.21%. At present, Harmony Exchange manages a total of 107 funds with a total scale of more than 10 billion yuan.
It has been two years since "going public and private"
According to the official website of Harmony Huiyi Asset Management Co., Ltd., the company was founded on June 19, 2020, initiated by Lin Peng, a leader in domestic value investment, and the founding core team comes from domestic first-class investment institutions, with an average of 20 years of experience, has a deep understanding of the capital market, long-term bullish on the Chinese market, and is full of confidence in the strong resilience of the Chinese economy.
According to public information, Lin Peng has been engaged in the securities industry since 1998, and has served as a securities investment manager and executive director of the special account investment department after the approval of Dongfanghong Asset Management in 2010, and has been responsible for the public equity team of Dongfanghong since 2016.
At that time, during the period of Dongfanghong Asset Management, the performance of fund products managed by Lin Peng was relatively eye-catching. Taking Dongfang Hongruifeng as an example, it is the first three-year closed-end securities firm public offering fund in the whole market, and it is also the public offering product that Lin Peng has managed for the longest time.
Data show that since the establishment of the product on 2014/09/25 to 2020/05/16, the net value of Dongfang Hongruifeng has increased by 218.4%, and the annualized rate of return has reached 22.8%, the cumulative +60.2% of the CSI 300 and the cumulative +40.0% of the ChiNext index in the same period. In the 68 complete monthly periods of the tube, the product equity has reached a total of 28 new highs, with an average of new highs every 2.43 months, and the cumulative return and maximum drawdown are significantly better than the market.
It is also with the blessing of various halos that Lin Peng established the current 10 billion private placement Harmony Huiyi in 2020.
Specifically, in May 2020, Orient Securities Asset Management issued an announcement that Lin Peng, deputy general manager of the company and general manager of the public equity investment department, resigned due to personal reasons; In August of the same year, the filing information of the Fund Industry Association showed that Shanghai Harmony Huiyi Asset Management Co., Ltd., founded by Lin Peng, had completed the registration of private securities investment fund manager, which meant that Lin Peng, who was born in a public fund, officially entered the private placement.
In October of that year, the first private placement product founded by Lin Peng "Ben Private" won a hot hit in the market, and the "Harmony Huiyi Vision Series" with a closed period of 3 years sold 15 billion yuan on the first day of issuance. In addition, the core team of Harmony Huiyi at that time also had many star fund managers, such as Sun Xidong, former general manager of E Fund's institutional client headquarters, Zhang Hongyu, former assistant general manager and chief investment officer of Hony Yuanfang Fund, and Liang Shuang, former deputy general manager of Oriental Securities Investment Business Headquarters.
He has expressed more awe for the market
It is worth mentioning that in the first half of this year, Lin Peng expressed his sincere apologies to all customers at the exchange meeting with investors. Lin Peng said at that time that the team was not lying flat, and was still working very hard to operate the investment research team. At the same time, by reflecting on the mistakes made in the past year, he believes that the team is too obsessed with mean reversion and contrarian investing, and should learn to "compromise".
In addition, on March 31 this year, Lin Peng also said in an internal exchange meeting with product holders that the fundamental confidence in the future comes from three places.
The first is technological progress. For China, technological progress may be reflected in the improvement of quality of life, reflected in the continuous solution of industrial problems to improve manufacturing capabilities, in the process of gradually reducing the age of the labor force, our industry can continue to stabilize in the country, to solve the problem of automation to replace manpower. Semiconductor computing power, in the past one or two years has doubled, power consumption control is good, new products and new services are fully likely to achieve an explosion, we may usher in the second wave of technology since smartphones.
Another aspect is entrepreneurship. Long-term investment seems easy, the process is very difficult, there are constant ups and downs, we hope to find the best entrepreneurs, accompany and grow together, overcome the volatility caused by the cycle, and constantly beat the market.
The third source of confidence he believes is valuation. The short-term great impact of the market, many industries such as electronics, valuation has been at the lowest level in history, in an extreme downturn, the impact of events, the valuation is at the bottom, the company buyback actions are frequent, representing the listed company's understanding of the stock price, which is the source of our confidence.
When talking about the experience of moving from public to private placement to manage products, he believes that there should be more respect for the market. In terms of investment methods and investment concepts, public and private placements are consistent. But our risk awareness will be stronger than before, in the past the position adjustment of the portfolio is very small, the turnover is also very low, we slowly increase the granularity of the portfolio transaction. "We will do more micro, small adjustments, further observation, further adjustments, until we make a big adjustment, not that the change of hands is significantly improved, that is, to do short-term trading, but will optimize their own adjustment methods."
The manuscript is synthesized from brokerage China, Cailian, etc