Yang Dong, once a public offering celebrity and now a private equity boss, has repeatedly successfully predicted the top of the market, what is his performance at the bottom of this round of the market?
The answer is that there is both a cautious side and a breakthrough side.
Although Yang Dong "ran privately", the industry rarely knew his investment views and trends, and the details of product operation were also quite "confidential". But his good big-picture view, flexible investment style, and keen perception of risk still attract the attention of many people.
This "enigmatic" investment boss, the latest investment details are indeed unexpected.
The latest information obtained by Zizhitang shows that at the bottom of the market, Yang Dong has launched an "alternative investment" layout...
Big guy Yang Dong
As the founder of Ningquan Asset, Yang Dong now manages more than 40 billion yuan of funds and independently cultivates investment and research talents.
However, unlike public fundraising, he has become increasingly and rarely seen to express his views.
However, some of his strategies and ideas can be glimpsed through the product layout direction of Ningquan Assets.
This summer, Ningquan Asset raised funds through multiple channels and launched a new product on August 16.
As of the end of October this year, the net value of the fund was 0.9820, and the net value fell by -1.6% since its inception, which was a slight decline and significantly outperformed the -7.78% return of the CSI 300 Index in the same period.
Regarding the operational characteristics of the new product, Ningquan Asset told the holders: "After the establishment of the product, we operated cautiously and increased our buying efforts after mid-September, mainly in the financial, food and beverage, pharmaceutical and travel sectors. The epidemic situation in various parts of the country has been rising one after another, and the relevant sectors have been affected by this and have declined to varying degrees, but the pharmaceutical part has made good profits and the net value of products has remained stable. ”
Seventy percent of positions "hidden information"
As of the end of October this year, the asset allocation ratio was stocks (accounting for 11.2%), equity and bond funds (no allocation), money funds, bank deposits and settlement reserves (accounting for 18.44%), convertible bonds and deliverable bonds (no allocation), and other assets (70.34%).
Seventy percent of the "other assets" are worth paying attention to.
The asset allocation layout of the above products is significantly different from other mainstream institutions.
Taking a 100 billion stock private placement in the industry as an example, the asset classes of the company's products are divided into A-shares, Hong Kong stocks, other stocks, other categories, and cash.
Taking another well-known private placement in Shanghai as an example, the asset allocation structure of its stock long products is stocks (including Hong Kong Stock Connect), bonds, funds, cash, and others.
The information department has reviewed the operation reports of many leading institutions in the industry, and the allocation of other types of assets is generally zero, but the allocation of stock assets and cash management is the mainstay.
In contrast, Ningquan Asset's product asset class does not include pure debt assets (interest rate bonds and credit bonds), but separately lists "offensive" convertible bonds.
In addition, this new fund, which was issued in mid-August, Ningquan Asset did not take equity assets as a core allocation.
According to the operation report, as of the end of September, 55% of the funds were allocated to "other assets", and its allocation ratio increased to 70.34% at the end of October.
What exactly does this key "other assets" mean?
Where are "alternative investments" going?
According to the contract documents of Ningquan Jinxuan Fund, the investment scope of its products includes mainstream varieties such as stocks, bonds and cash deposits, as well as margin trading, options, futures and securities lending transactions under the Facility Connect.
In addition, the scope of investment also mentions "outward options with securities companies, futures companies or specialized risk subsidiaries of futures companies as counterparties, and income swaps with securities companies as counterparties".
In other words, this product of Ningquan Asset can invest funds in financial derivatives, only in accordance with the statement in its contract, "derivative assets are calculated on margin, and the total shall not exceed 80% of the net asset value of the fund".
Therefore, the possibility cannot be ruled out that a large proportion of derivatives investments are made in the underlying products and placed in the "other assets" category.
In addition, what "other assets" will Ningquan Asset invest in?
Presumably from the fund contract, "other types of assets" may also include income swap (swap) products and other bond-type products purchased from brokers.
In layman's terms, income swaps are similar to the income rights of a certain type of asset customized by the customer to the institution at a specified time stage. There is a lot more variety. Theoretically, it can include quasi-fixed income products, equity-like products, quasi-commodity products, etc.
Veterans will have a good job
Yang Dong's new asset layout arrangement for his company's new products must have his reasons.
Historically, he has repeatedly identified considerable investment opportunities through his unique understanding of certain asset classes.
His early investment management business and early investments in Xingquan Fund have always had a soft spot for convertible bonds, such as those of him.
Looking back on his growth history, he worked at Industrial Securities from 1992 to 2003, responsible for the proprietary investment business for a long time, and served as the investment director of a securities company, ensuring the long-term profitability of the company's investment business.
In 2002, in the early development of China's public offering industry, Yang Dong was responsible for the establishment of Xingquan Fund (formerly known as Industrial Fund). The company was founded in September 2003 and he served as its first general manager until his departure in January 2017.
During Yang Dong's tenure at the helm of Xingquan Fund, in addition to a few top "letters of exhortation", it attracted market attention. His emphasis on the team is also well received. Many star fund managers were born on this track, including Wang Xiaoming, Dong Chengfei, Xie Zhiyu, Housewarming and so on.
The anticipation of the grinding process is arduous
In the October monthly report of related products, Ningquan Asset still maintained its usual cautious style. They say to the holders:
The current situation is still relatively complicated, and how the development of events will eventually evolve is still full of variables, it is difficult to see clearly, and we can only keep close attention.
Most of the time investment decisions are made in the face of uncertainties in the future, and when the market is pessimistic, our ultimate confidence depends on the long-term fundamentals and development prospects and valuation levels of individual stocks.
As stocks continue to fall, they are becoming more attractive, and the current declines are all about creating better opportunities for future profits. Our attitude is gradually positive, continue to buy long-term optimistic high-quality stocks, gradually increase product positions, in order to achieve future earnings, it is necessary to endure a certain degree of downward fluctuations.
For the market trend in 2023, Ningquan Asset believes that the market will improve significantly, of course, the market is maturing, I am afraid it is difficult to expect the market to turn into a rapid rise immediately after the bottom, the process of grinding the bottom may be more arduous, and the market will be more complicated.
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