On Wednesday (April 24, 2024), boosted by overnight U.S. technology stocks, today's popular QDII funds exploded in the market! Overseas technology LOF (501312), which "invests in overseas disruptive technology", jumped sharply in the market today, and the price on the market closed up 5.64%, ranking first in the list of ETFs and LOF funds in the two cities! The trading volume increased significantly, with a full-day turnover of 36.8 million yuan, a surge of more than 4 times compared with the previous trading day!
Image source: Wind
According to the fund's first quarterly report, as of March 31, 2024, overseas technology LOF (501312) holding funds include 5 ARK series ETFs, accounting for more than 70% of the fund's net asset value, mainly investing in cutting-edge technology fields such as the new generation of Internet, disruptive innovation, genetic innovation, and financial technology. The other three are invested in the Nasdaq 100, the leading U.S. semiconductors and other technology stocks.
It is worth noting that the ARK series of funds is a product of Cathie Wood, a well-known Wall Street investor. "Sister Wood" is unanimously recognized by market investors as a firm bull of Tesla, a well-known electric car leader. Taking the flagship ETF of "Sister Wood" - Ark Innovation ETF (ARKK) as an example, as of April 24, the fund's latest position in Tesla has a weight of 9.45%, ranking second in the position. Its ARKW fund is also heavily invested in Tesla.
Source: ARK Fund official website, as of 2024.4.24. The individual stocks in the chart are for informational purposes only, and the descriptions of individual stocks are not intended as investment advice of any kind, nor do they represent the position information and trading trends of any fund under the manager.
["Sister Wood" counterattacked at the moment, Tesla's U.S. stock rose more than 12% after hours]
In the case of Tesla's sharp pullback this year, "Sister Wood" chose to increase its position in the retrograde. According to public information, after increasing its position for three consecutive days last week and buying about $28 million worth of Tesla shares, the fund of "Sister Wood" bought another 122752 shares on Monday, worth about $17.44 million. The move of "Sister Wood" has also been questioned by the market. However, just after the U.S. stock market on Tuesday, Tesla announced its first-quarter earnings report, which rose by more than 12% after the market detonated the market.
On the news side, Tesla announced its financial results for the first quarter of 2024. According to the financial report, Tesla's total revenue in the first quarter was $21.3 billion, down 9% year-on-year, net profit attributable to common shareholders was $1.129 billion, down 55% year-on-year, and earnings per share attributable to common shareholders were $0.34, down 53% year-on-year.
However, during the earnings call, Tesla showed off the ride-hailing program that will be integrated into Tesla's products, announced that it will release new models early, and its robo-taxi network under development is also progressing very well. The company's CEO Elon Musk also emphasized that Tesla is an AI robot company, not a car company, reversing the market's previous pessimistic expectations.
Previously, "Sister Wood" said in an interview with the media that she is still firmly optimistic about the long-term prospects of the electric vehicle manufacturer due to Tesla's dominance in autonomous driving and robotics projects.
"Sister Wood" pointed out that Tesla is working on the world's largest artificial intelligence project through self-driving, and it has more real-world driving data than other companies, and we believe that by 2030, the entire ecosystem of robotaxis will generate $8 trillion to $10 trillion in revenue, and platform providers like Tesla will receive half of that revenue.
Tesla will also become one of the leaders in the field of humanoid robots with Optimus, a lot of the work in the car factory requires quite precise manipulation of bolts and nuts, which robots can't do at the moment, but when the humanoid robots are ready, they will help the car factory scale up at a faster rate.
[Waiting for the start of the interest rate cut cycle! Small-cap technology stocks may ride the wind]
Recently, the Fed's interest rate cut expectations have cooled, and technology stocks, especially small-cap technology stocks, have been relatively flat. However, CICC's recent research report pointed out that the pullback in U.S. stocks will help the resumption of interest rate cut trading. The agency pointed out that the expectation of the Fed's interest rate cut postponement is still fermenting, and the number of interest rate cuts implied by CME interest rate futures last year has been reduced to one, that is, in September, causing the 10-year Treasury and the dollar to continue to rise, approaching the previous high.
The agency pointed out that the S&P 500 index fell 3.1% last week, and the Nasdaq index fell 5.5%, causing market concern. On the one hand, the decline of US stocks has its "inevitability", and on the other hand, the fall of US stocks in this position is not a bad thing, not only to absorb its overly strong expectations, but also to help the interest rate cut trade to open again, and then lay the foundation for the subsequent rise again.
Previously, Mr. Zhou Jing of Huabao Fund said that if the interest rate cut cycle starts, it will be good for U.S. technology growth stocks and long-term assets. Mr. Zhou Jing pointed out that artificial intelligence, represented by NVIDIA, has improved production efficiency and corporate profitability from the molecular end, and it is necessary to expect the possible start of the interest rate cut cycle to improve the overall valuation of the stock market from the denominator side. He said that there may be a rebalancing of U.S. stocks in the future, but in the macro context of increased uncertainty about the overall economic growth of the United States, it is expected that high-quality growth stocks will still be the first choice for equity investment.
At the same time, he also believes that long-term assets will benefit after the rate cut cycle begins. Long-term assets are not limited to long-term bond assets, and some growth companies that have not generated profits for a long time can also be regarded as long-term assets, such as disruptive innovation companies advocated by ARK's founder "Sister Wood" Cathy Wood, and some start-up small-cap technology companies.
It should be noted that from April 22, 2024, the upper limit of the cumulative subscription amount (including automatic investment) of a single fund account of "Huabao Overseas Technology QDII-LOF" Class A fund shares (code: 501312) will be adjusted to 400,000 yuan (inclusive), and the cumulative subscription amount (including automatic investment) of Class C fund shares (code: 017204) in a single fund account of some sales agencies (except direct sales counters and online direct sales platforms) will be adjusted to 400,000 yuan (inclusive). Previously, the fund's large-scale subscription limit was 500,000 yuan, and this time it is to continue to tighten the space for large-scale subscription.
Note: The position data comes from the first quarter report of the overseas technology LOF2024, and the top 10 heavy stocks/funds at the end of each quarter shown in the regular report are only held on the day at the end of the quarter, which does not mean that the fund has always held in each full quarter, nor does it mean that the fund will continue to hold in the future.
Source: Fund Periodic Report, Wind, as of 24 April 2024.
Risk Warning:
Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only, and investors shall be responsible for any investment behavior determined independently. In addition, any opinions, analysis and forecasts in this article do not constitute any form of investment advice to the reader, and this article does not represent the investment strategy of the company's managed products, nor does it assume any responsibility for direct or indirect losses caused by the use of the content of this article. Past performance of the fund is not indicative of its future performance, and investors should be cautious.
Huabao Overseas Technology QDII-LOF (Class A: 501312/Class C: 017204) is issued and managed by Huabao Fund, and the agency does not assume the responsibility for the investment, redemption and risk management of the product. Investors should carefully read the Fund Contract, Prospectus, Fund Product Key Facts Statement and other legal documents of the fund, understand the risk-return characteristics of the fund, and choose products that are suitable for their own risk tolerance. The fund manager's risk rating of overseas technology LOF is R4-medium and high-risk, which is suitable for active (C4) and above investors. The performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. The past performance of the fund is not indicative of its future performance, and the fund investment should be cautious! The sales agency (including the direct sales agency of the fund manager and other sales agencies) shall conduct the risk evaluation of the fund in accordance with relevant laws and regulations, and investors should pay attention to the suitability opinions issued by the fund manager in a timely manner, and the opinions of the sales agencies on the suitability are not necessarily the same, and the risk rating evaluation results of the fund products issued by the fund distribution agencies shall not be lower than the risk rating evaluation results made by the fund manager. The risk-return characteristics of the fund and the risk level of the fund in the fund contract are different due to different factors to be considered. Investors should understand the risk and return of the fund, carefully select fund products based on their own investment objectives, horizon, investment experience and risk tolerance, and bear their own risks. The registration of the Fund by the CSRC does not indicate that it has made a substantive judgment or guarantee on the investment value, market prospects and returns of the Fund.
The above content and data have nothing to do with the position of the interface and do not constitute investment advice. Do so at your own risk.