Open Call for Chinese Studies | Phoebe
Editing, co-ordinating| Jamie
制作 | Jessica
Graham once taught Warren Buffett that the first principle of investing is not to lose money, and the second principle is to remember the first principle.
Phu Quoc Bai Bingyang knows this well. She attaches great importance to valuation, has a sharp and distinctive style, and has a high turnover rate. He especially likes the "unpopular" field, and is good at left-side, reverse forward-looking layout. Her investment framework is to find companies with the right earnings, valuations, and risk-return ratios, with value judgment as the core, which requires both a high "margin of safety" and a higher "discount rate".
In 2022, the market will be adjusted, and the four products managed by Bai Bingyang will all rise against the trend, achieving positive returns while ranking among the top in the same category. became famous for a time and was known as the "Value Woman".
What the public offering China wants to study is: how does the seemingly "niche" Bai Bingyang integrate value and growth, and what kind of "universal" investment philosophy is hidden behind this?
unique
Bai Bingyang graduated from Xi'an Jiaotong University with a master's degree in management, worked at Ernst & Young and Deloitte from 2005 to 2009, worked in the Shanghai Research Department of Taiwan Qunyi Securities from 2009 to 2012, joined BOCI in February 2012, and has served as a fund manager for many products since 2016. In December 2023, he joined Wells Fargo Fund.
"No matter how good things are, they are too expensive to buy; No matter how bad things are, there is always value. "In the fund circle, Bai Bingyang is known for his sharp left-hand and reverse style, and the performance of many products ranks at the forefront of the market.
For example, Bai Bingyang's longest-managed partial debt hybrid product, Bank of China Securities Jurui A, has a return of 49.94% and an annualized return of 8.24%; followed by flexible allocation products BOC Securities Health Industry and BOC Securities Value Selection, which were 49.45% and 46.52% respectively, with annualized rates of 21.13% and 16.82%, and the return of ordinary equity products BOC Securities Advantage Manufacturing A was 18.81% and 11.17% annualized.
2022 is the highlight of Bai Bingyang.
That year, the "BOC Securities Value Selection" managed by her achieved a yield of 13.08%, ranking among the top 10 active equity funds. "BOC Securities Advantage Manufacturing" ranked fifth among ordinary equity funds that year with a return of 9.26%.
At that time, Bai Bingyang's forward-looking layout on the left side of the coal plate was a classic.
In September 2020, Bai Bingyang was appointed as the fund manager of his representative "BOC Securities Value Selection". On December 4, 2020, Bai Bingyang began to manage the fund on his own, and made drastic rebalancing: since the fourth quarter of 2020, the number of heavy stocks replaced in each quarter has been 7-9.
Judging from the change of heavy stocks, the new Yuanxing Energy, Tianyuan Co., Ltd., Huayi Group, and Xinxiang Chemical Fiber will be added in the interim report in 2021, all of which are in the chemical industry; Dingsheng New Materials is the non-ferrous metal industry.
Wind data shows that in the first three quarters of 2021, the fund's return was 38.93%, and the fund's net value increased by 39.7% in the third quarter alone, ranking second among similar funds.
Among them, Guanghui Energy, Jizhong Energy, and Haohua Energy doubled, with an increase of 160.66%, 150.97%, and 125.31% respectively in the third quarter; Yankuang Energy, Blue Flame Holdings, and Yangmei Chemical followed closely behind, with 99.84%, 84.89%, and 76.61% respectively, while the rest of Huayi Group, Yinglite, and ST Zhongtai rose by more than 30%, and China Coal Energy was the last 26.15%.
Entering the fourth quarter, Bai Bingyang once again "changed blood", "Bank of China Securities Value Selection" threw away a number of coal stocks, only reduced positions to retain Yankuang Energy, and added nine new stocks such as ST Jinke, Gemdale Group, Xinhua Pharmaceutical, and China Resources Sanjiu.
However, this time, the market did not choose to be on the side of Bai Bingyang. Among the ten heavy stocks in the fourth quarter, only Zhibang Home, Gemdale Group, Hunan Oil Pump, Xinhua Pharmaceutical, and China Resources Sanjiu rose positively, and the other five stocks lost one after another, falling as much as 18.83%.
"Not by luck"
Such a large opening and closing of the industry rotation naturally attracted market attention. At that time, Bai Bingyang refused to classify the precise hunting of coal stocks as "luck and chance".
She stressed that it is not the Russia-Ukraine conflict and other emergencies that dominate her investment in the energy industry, but the continuous tracking and judgment of the energy production and consumption structure is the key. In the context of the transformation of energy production and consumption structure, unexpected factors are only a catalyst to accelerate the reversal of the relationship.
Time is the best proof, and in 2022, Bai Bingyang will once again bet heavily on energy stocks. In the first three quarters, there were 2-4 energy stocks in the "BOC Securities Value Selection" heavy position pool, such as Shanxi Coking Coal, Orchid Science and Technology, Pingmei in the first quarterly report, Jizhong Energy, Guanghui Energy and Haohua Energy in the second quarterly report.
Among them, Bai Bingyang's three consecutive heavy positions in Orchid Science and Technology, the stock price soared from 9.37 yuan/share to 16.45 yuan/share during the holding period, and after selling at a high point, the share price of Orchid Science and Technology went all the way down, to close at 9.44 yuan/share on August 10 of the same year, almost back to the original point.
Thanks to the precise hunting like a scalpel, this year, "BOC Securities Value Select" achieved a positive return of 13.08% against the market, and the top 0.54% of the same category. During the same period, the CSI 300 fell by 21.63%, the BOC Securities Value Select Benchmark fell by 13.12%, and the same kind of flexible allocation fund also fell by more than 15%.
So far, Bai Bingyang has "become a god in the first war".
In general, Bai Bingyang is biased towards value investment, and the core is valuation. She does not pursue flawless targets, but is committed to finding cost-effective, "misvalued" assets, and buying individual stocks at low prices; Portfolio investment is emphasized, with a moderate concentration of individual stocks, and industry diversification or concentration is based on individual stock selection.
"In the case of traditional energy, my investment philosophy is to look for investment opportunities that are biased by market perception for specific reasons, leading to valuations below a reasonable range. Dialectically look at the market view, eliminate short-term disturbances, and adhere to the investment decision with objective value as the core. She said so.
Looking at the past, Bai Bingyang's public statement when facing a drawdown of more than 20% at the end of 2021 not only reflects her accurate judgment of the market, but also casts a colorful color of a "lone hero" on her retrograde road.
Reboot
On February 22, 2023, BOCI announced that fund manager Bai Bingyang resigned due to personal reasons and left his position as fund manager of 4 funds, including BOC Securities Advantage Manufacturing, BOC Securities Health Industry, BOC Securities Value Selection, and BOC Securities Jurui. Three months later, the latest public information from the Asset Management Association of China showed that Bai Bingyang's practitioners were updated to Wells Fargo Fund.
Founded in 1999, Wells Fargo Fund has long been known for its sovereign equity management and is one of the first "old ten" fund companies in mainland China. At the beginning of 2022, Wells Fargo Fund, which has excellent veterans such as Zhu Shaoxing and Bi Tianyu, is strong and strong, ranking among the top four in the industry for the first time, and together with China Asset Management and GF Fund, it has formed a second army to catch up with E Fund at the top of the list.
In addition to Bai Bingyang, Wells Fargo Fund has also attracted a number of active equity management experts in recent years.
For example, before Bai Bingyang, fund managers with good past performance, such as Dacheng Fund growth stock player Xie Jiale and JPMorgan Asset Management Zhang Fusheng, have successively joined Wells Fargo Fund; In May this year, Fan Yan, who is also a female fund manager, also chose to join Wells Fargo Fund.
As of June 19 this year, Bai Bingyang's new "Wells Fargo Insight Value" fund managed by Wells Fargo Fund has a scale of 290 million yuan, with a return of 9.49%, ranking 176/937 (top 20%) in the same category.
The flow of excellent investment and research talents has become the norm. In order to cooperate with the issuance of new funds, since the end of last year, Bai Bingyang's exposure has increased significantly.
She said that in the first quarter, investment opportunities with suitable risks and returns were found in different industries and fields, and positions were quickly built during the opening period. Although it is subject to market volatility risks in the short term, the starting point of investment decisions is medium and long-term. The valuation of the selected target has fully considered the negative factors, and it is hoped that the investment target can usher in the mean reversion of performance and valuation.
Bai Bingyang revealed that he is more optimistic about the three major industries in the future, namely: energy - not only traditional energy, but also new energy. The impact of change in this field will be wide-ranging and far-reaching; Export--The iterative upgrading of China's manufacturing industry has brought about many changes in export products; Consumption – With the change in the age structure of the population, there are structural opportunities in some segments.
In the first quarter of this year, the top 10 heavy stocks of "Wells Fargo Insight Value" were distributed in many fields such as consumer discretionary, health care, and information technology, including Shennong Group, Xueda Education, Jiayi Shares, Bubble Mart, China Dynamics, North Huachuang, Shijing Technology, Thinking Train Control, Yingjie Electric, and Western Mining.
"There is no accident in the world, but the inevitability of wearing makeup and masks." This realist optimist, who is in awe of the unknown, recognizes the theory of weakness, and is even a little conservative, will continue to pay attention to what kind of performance the Wells Fargo Fund will have.
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