In the current market environment where opportunities and challenges coexist,
A balanced configuration combination, the enterprises inside -
Like the flowers on a patchwork tree, they bloom sequentially over time, through cycles and styles.
Balanced style shows his skills, and Wang Rui stands out
This year's market is both highly differentiated and has experienced significant shocks.
Some star funds with more aggressive styles in the early stage and heavy bets on a single track have fluctuated greatly, which has affected the investment experience of many basic people.
In contrast, those funds that adhere to multi-industry allocation and balanced style are more stable and full of staying power in the volatile market, and have won the recognition of investors.
Balanced style of the fund, although in the short term does not show dew, short-term explosive power is not outstanding; but in the long run, this style is aimed at long-term performance, the east is not bright and the west is bright, adapting to a variety of market forms, fine water and long flow, often bring better customer experience.
Today, I want to introduce Wang Rui from CITIC Prudential Fund, a representative figure of the balanced style fund manager.
"My style is balanced configuration, rarely re-bet on a single track, and I hope to diversify the layout in the direction of new energy, electric vehicles, big technology, and new materials that I have studied in depth to resist risks."
Data source: Fund performance data has been reviewed by the custodian bank, and similar ranking data comes from China Galaxy Securities Fund Research Center, and the data is as of 2021/8/31. Funds are risky and investments need to be done with caution.
From the performance point of view, as of August 31, Wang Rui's representative work, CITIC Prudential Innovation growth, has a yield of 64.44% in the past year, ranking 39th among 486 similar funds; the yield in the past two years is 240.28%, ranking 11th among 461 funds of similar kind.
Since its inception, the fund has an annualized yield of 63.60%.
Data source: Fund performance data has been reviewed by the custodian bank, and similar ranking data comes from China Galaxy Securities Fund Research Center, and the data is as of 2021/8/31.
The other two funds he manages, CITIC Prudential Elite Growth and Prudential Winning Selection, have also achieved good net worth growth, doubling their net worth in the past two years, and the management products reflect the momentum of going hand in hand.
Look for protected growth and commit to investing in triples in three years
As an excellent Mesozoic fund manager, with the steady improvement of performance, more and more investors pay attention to his products.
So, what is the secret of Wang Rui's excellent performance in his investment field?
By observing the portfolio he managed, as well as the fund reports over the years, plus some public interviews with the outside world, I summarized several of his key characteristics:
1, every era, there are matching growth stocks
Wang Rui, Director of Equity Investment Department of CITIC Prudential Fund
Wang Rui, master's degree, has 11 years of experience in securities and funds.
He was a former equity analyst in the investment department of AIG (American International Group), joined CITIC Prudential Fund Management Co., Ltd. in October 2009, and has served as a researcher and special account investment manager, and is currently the director of the equity investment department of CITIC Prudential Fund and a member of the investment decision committee.
Wang Rui began working as a fund manager in April 2015 and has been working for more than 6 years.
By managing different fund products and constantly researching, he is honing his circle of competence.
Wang Rui is a value growth style, he prefers growth industries, and is responsible for the growth group in the investment research team of CITIC Prudential.
"We believe that in every era, there are growth stocks to match."
Overall style, Wang Rui first pays attention to the long-term growth of the enterprise, and tends to focus on the long-term enterprise value growth of the company, rather than the long-term enterprise value in a range of fluctuation cycle companies.
The second is that there are some requirements for the valuation system, so it is called value growth.
Specific ability circle, Wang Rui is good at advanced manufacturing, new energy, electric vehicles (TSL industry chain, etc.) and other investment areas, is one of the earliest domestic research and investment in the new energy vehicle industry chain fund managers.
2, the left side of the layout, looking for protected growth
Higher expected return space, and stronger uncertainty, are two sides of the same coin for investing in growth stocks.
Wang Rui defines his investment method as a protective growth.
The so-called protection, first of all, is a reasonable valuation.
"No matter how good a company is, it is free from reasonable pricing, and it may also make you fall into the trap of valuation contraction."
The second is a balanced allocation, which will not be too largely exposed in a single direction and disperse holdings.
Source: CITIC Prudential Innovation Growth's 2021 Semi-Annual Report
The most fundamental is still a deep understanding of the industry and the company, Wang Rui does not like to chase the wind, is more good at left-sided investment, to find some of the less popular varieties, hope to at least earn the company's performance growth money, if lucky, you can also earn money for valuation improvement.
Wang Rui named his investment "weapon": the knife of medium and micro growth rate valuation cost-effective matching. In any market environment, only the industries and companies with the highest degree of growth and valuation matching are selected.
3. Starting from the medium and long term, the pursuit of the opportunity to double in three years
Pursuing a three-year doubling of net worth growth is an important part of Wang Rui's investment methodology.
Wang Rui insists on a rolling compound interest with reasonable returns, looking for a three-year doubling opportunity with higher certainty.
His first goal: to choose the investment target according to the goal of doubling every three years (compounding about 25%).
The second goal: to emphasize the margin of safety, to strive to control the drawdown, to believe in compound interest; and to hope that every investment will eventually achieve absolute returns - try to avoid short-term trend trading that chases up and down.
Comparison system: The first goal of the comparison is the set compound expected rate of return, not the same fund or benchmark.
The advantage of this is to maintain a relatively stable mentality in the face of complex markets.
"There is a relatively independent goal that in difficult times will avoid some imbalances in your mindset due to some changes in the market.
The establishment of the goal of doubling in 3 years is of great help to maintain my medium- and long-term core methodology system. ”
In this way, in the investment strategy, Wang Rui will minimize the dependence on macro judgment, reduce excessive attention to short-term market fluctuations, adhere to the mesoscopic industry comparison and bottom-up stock selection to build a portfolio, hoping to find some stocks with the potential to double in three years to layout and hold.
4. Take profit in a timely manner to reduce fluctuations
The difficulty of investing in growth stocks is that the price fluctuates greatly, and if some companies cannot sell at the right time, it is easy to return to the pre-liberation period overnight; but there are also growth stock companies, which will sell 10 times the next 10 times.
Investing in growth stocks is often fraught with regrets.
And Wang Rui believes that it is more regrettable to buy the wrong one, it is not so regrettable to sell early, he has a clear investment goal, as long as he reaches the goal, even if it is sold early, it does not matter.
In terms of portfolio management, Wang Rui is dynamically adjusted and timely take profits.
The combined industry or specific variety will be adjusted according to the change of the expected yield, and after the target price is reached, if there is a variety that is more satisfied with the yield space, it will be gradually taken profit.
"Everyone always says that the market is very effective, in fact, in the A-share market, you can still find more 3 years of doubling opportunities."
We go to find companies that can double profits in three years, or more. I just have to judge that the company's valuation system will not go down.
People always say that they want to find stocks that are 10 times in 10 years, but in fact, they double in 3 years, and then the yield rolls down, which will also be close to 10 times in 10 years. However, from the perspective of the probability of investment opportunities, the probability of finding a 3-year doubling stock is much greater than 10 times that of 10 years. ”
5. Team operation, platform support
Wang Rui's excellent performance is not accidental, and a large factor comes from the support of the platform.
CITIC Prudential is a fund company that I have introduced many times, and it has unique features in the layout of emerging industries.
Unlike general research-driven investment, the equity team of CITIC Prudential Fund pays more attention to investment-driven research.
According to personal preferences and differences in the field of expertise, the company's investment research team is divided into different investment style groups, Wang Rui is responsible for the growth group, fund managers / investment managers in their respective fields, with a long period of research accumulation and a broader investment perspective; compared with researchers, can find the industry trend in a more timely manner, more accurately judge investment opportunities and timing.
CITIC Prudential emphasizes teamwork as a whole. The individual play of the fund manager is important, but if there is a team behind it as a support, it can make the fund manager go more stable and longer.
This year, the funds with the more outstanding performance of CITIC Prudential are relatively consistent with several tracks selected at the beginning of the year.
In the future, the CITIC Prudential investment research team will also adhere to the clear style of the fund and make the characteristics more distinctive, and at the same time, according to the characteristics of the future market, in the fields of medicine, science and technology, and then find some subdivision tracks that can accommodate large funds, and lay out the products in advance.
On the whole, the perfect investment system and team combat method have brought sustained and excellent performance to CITIC Prudential Equity Investment, and as the investment research team matures, the advantages of the company's large platform are gradually emerging, effectively empowering fund managers.
Focus on high prosperity and layout advantageous industries
Since entering September, the volatility of the market has increased, the industry rotation has accelerated, and the investment difficulty has become increasingly difficult.
But for value growth style fund managers, volatile markets often bring better investment opportunities.
It is understood that the CITIC Prudential Forward Advantage Hybrid Securities Investment Fund (code: 013610), which is to be managed by Wang Rui, will be issued from October 11, which is a partial stock hybrid fund with the investment objective of: under the premise of effectively controlling portfolio risks, strive to obtain investment returns that exceed the performance benchmark.
The fund's investment ideas and promising investment directions:
High prosperity: scientific and technological innovation, industrial upgrading, including carbon neutrality (new energy vehicles/photovoltaics), card neck (semiconductors), national security (military industry).
Improvement of supply and demand pattern: external demand recovered, and the epidemic contracted overseas supply, including panels, consumer electronics, industrial control, electromechanical, chemical, glass fiber, home appliances, light industry, and auto parts.
Consumption upgrading: expanding internal circulation, medium- and long-term consumption upgrading, and offline consumption repair after the epidemic, including medical services, cosmetics, tax exemptions, cinemas, etc.
Overall, the fund will continue Wang Rui's value growth style, plan to lay out a number of boom tracks, and look for investment opportunities that double in three years.
In the past two years, the three funds managed by Wang Rui have achieved double net worth growth in two years.
The proposed new CITIC Prudential Forward Advantage (code: 013610) will face more challenges, can it bring new surprises to the holders? And let's wait and see.
Finally, I would like to conclude the article with a passage from the proposed fund manager Wang Rui:
"Under the background of institutional support and remarkable results in economic structural transformation, China's economy has shown a long-term stable upward trend, providing a good environment for long-term investors in the equity market.
I hope to work with more investors who are in line with my philosophy to go further and steadier in the era of equity investment. ”
Disclaimer: Fund research and analysis do not constitute investment advice or advisory services, nor investment advice. The remarks posted on this account only represent personal views and are not used as a basis for trading. The Fund's investments are risky and the Fund's past performance is not indicative of its future performance. Please carefully read the relevant legal documents and risk disclosure statements, make rational investments based on your own risk tolerance, and bear the risk of investment funds yourself.