The article is reproduced from Everbright Wealth Management
In this issue, we will take you to understand Wang Peng's total investment experience, investment framework, etc., as well as the outlook for the future market.
Introduction of big coffee
TEDA Manulife Fund Growth Team Leader, Mesozoic Star Fund Manager Wang Peng is known as a rotational master, bull stock hunter, with 9 years of experience, nearly 4 years of investment management practice performance, industry researcher, mainly responsible for electronics, computers, communications, media, home appliances and other industry research, with their own entry into the industry to experience a complete industry cycle changes and investment experience summary, and gradually formed their own mature "investment boom industry leader, the pursuit of Davis double-click" investment strategy, good at capturing market rotation opportunities, In the industry's rising cycle, we will tap high-quality stocks and focus on emerging boom leaders.
Joined CNPC Venture Fund in 2012 as a TMT industry researcher, joined Shanghai Panxin Investment in 2014 as an electronics industry researcher, joined TEDA Manulife Fund in June 2015 as a TMT industry researcher and growth team leader, and began to independently manage TEDA Manulife transformation opportunities in December 2017, and currently Wang Peng has managed 3 funds: TEDA Manulife Transformation Opportunity, TEDA Manulife High R&D Innovation for 6 months, TEDA Manulife Growth, Among them, TEDA Manulife's transformation opportunity is its longest management time and its masterpiece. As of August 31, 2021, TEDA Manulife Transformation Opportunity returned 149.24% in the past 1 year, 2.49% in the same period of performance benchmark, 60 times beyond the benchmark, ranking 1/234 of the same kind in the past 1 year, 457.71% in the past 3 years, 41.82% of the performance benchmark in the same period, 11 times beyond the benchmark, and 1/175 of the same kind ranking in the past 3 years.
In his view, the core investment framework mainly contains two parts, one is the comparison of the meso industry, and the other is the selection of stocks with performance exceeding expectations. He believes that when the industry is in a downturn, even the industry's leading companies will lose money, which prompted him to form an investment strategy of "investing in the boom industry leader and pursuing Davis double-click". Starting from the comparison of mesoscopic industries, choose the leading companies in the 2-3 years latitude boom industry. Focusing on the hub of profit growth in the selected industry in the next three years, there is no special preference for industry allocation. From the perspective of combined characteristics, the industry is flexibly configured and maintains a good industry width.
In terms of stock selection, Wang Peng will always look for alpha stocks that surpass Beta and have a high probability of performance exceeding expectations in selected boom industries. From the perspective of his management of product positions, the configuration is generally a leading company in the industry or subdivision.
Wang Peng always fully considers the risk factors in the portfolio construction, and when he does not make a choice every day, he will basically maintain a relatively high level of position, but will control the overall portfolio retracement by dynamically adjusting the industry dispersion and the rotation in the boom industry, such as its management of TEDA Manulife transformation opportunities, and at the end of 2020, it has increased the allocation of electrical equipment, chemicals, machinery and equipment, etc., and has well controlled the large fluctuations in the net value of fund products.
In terms of industry, Wang Peng always believes that each industry is actually different, generally looking at these latitudes, in order of the stage of the boom, the duration, the probability and valuation of exceeding expectations. Do not judge the style, only look at the probability that the profit will grow more than expected. Looking forward to the future, Wang Peng is more optimistic about new energy vehicles, wind power, photovoltaics, military upstream components, as well as consumption and medicine that have fallen and the stock price has been fully adjusted but the profit growth rate has not fallen down.
First, understand the "growth" experience of big coffee
Q1 Everbright Wealth Management: Can you tell us about your investment experience?
Wang Peng: 5 years of research on electronics, computer, communications, media industry, 2 years of home appliance industry research, 6 years of growth team leader, nearly 4 years of investment experience.
Q2 Everbright Wealth Management: Can you tell us about your investment framework and formation process?
Wang Peng: In the first year of 18 years of managing money, according to the circle of ability to invest, heavy positions in the most familiar electronics, the result of the electronics industry in the smart phone sales decline, trade wars, manufacturing equity pledge problems, the electronics industry rose to the bottom. At the same time, they bought second-tier dark horse companies that believed that there was a poor expected cost performance, and eventually these companies caused Davis to double kill because of their own factors in the downturn in the industry and the risk of equity pledge. Industries in the circle of competence will also lose money if they encounter a downturn in the economy, and second-tier companies will make you lose more in the process of the downturn. All of this prompted me to form an investment strategy of "investing in the boom industry leader and pursuing Davis double-click".
Second, the combination of product layout analysis
Q3 Everbright Wealth Management: We have observed that you are a fund manager who belongs to the whole market stock selection, but in the context of the market like the growth style of 2020 and the market background of switching values and growth styles in 2021, you still achieved very good results, proving that your management ability is very strong, what will you take as the core starting point of the fund products you manage? What is the overall mix more important?
Wang Peng: Starting from the comparison of mesoscopic industries, choose the leading companies in the 2-3 years latitude boom industry. Focus on the hub of profitable growth in the selected industry over the next three years. Latitude focuses on the phase, duration, probability of exceeding expectations, and valuation of the boom in turn. Macro doesn't make too much judgment.
Q4 Everbright Wealth Management: We have observed that the overall performance of your representative work TEDA Manulife transformation opportunity since you took over in 2017 has been very good, but we also see that the performance of this product in 2018 is relatively average, can you help us interpret the overall operation and management of the product at that time in detail?
Wang Peng: In 18 years, I invested in the industry I was familiar with, bought a non-leading company in the sluggish industry, and only began to try the current method in 19 years.
Q5 Everbright Wealth Management: We have observed that you manage representative products, the overall industry is relatively balanced, but also observed that the industry you configured has obvious rotation characteristics, such as 19 years of over-allocation of agriculture, forestry, animal husbandry and fishery, electronics, food and beverage, medicine and biology and other industries, while 20 years began to gradually reduce the allocation of the electronics industry, increase electrical equipment, chemicals, mechanical equipment and non-ferrous metals and other industries, can you analyze the logic of your overall combination of industry configuration? Do you do a certain style timing?
Wang Peng: Choose the leading companies in the industry where the prosperity (the growth rate of the year is dominant in the industry comparison) and the prosperity expectation (strong reversal in the future) are upward. Do not judge the style, only look at the probability that the profit will grow more than expected.
Q6 Everbright Wealth Management: We have observed that the top ten heavy stocks of the products you manage have changed a lot, and the overall portfolio has changed hands relatively high, but the portfolio performance is still very good, is it that you will chase some hot stocks when you select individual stocks? When selecting individual stocks, what aspects or indicators do you pay more attention to?
Wang Peng: There is no hot cold door, in the boom industry, if I think which stock has a higher probability of performing than expected, I will buy which one. When selecting individual stocks, selected industries should pay attention to the links and stocks that improve profitability.
Q7 Everbright Wealth Management: Your overall portfolio presents industry rotation + selected stocks + relatively high turnover, while timing the product style selection, such investment logic can still achieve excellent product performance in the growth, value style switching market is very rare, can you analyze specifically, do you think the overall portfolio excess performance mainly comes from your ability?
Wang Peng: The ability to compare industries, and the ability of selected industries to beat industry β by selecting stocks that exceed expectations. Don't choose the right time.
Q8 Everbright Wealth Management: How do you control the drawdown of the overall portfolio when managing the portfolio? Is position management carried out when the market fluctuates?
Wang Peng: Without position management, position decision-making is one of the most difficult abilities for fund managers to obtain. Drawdowns are controlled by dynamically adjusting industry dispersion and rotation in boom industries.
Third, the analysis of recent hot sectors and future prospects
Q9 Everbright Wealth Management: The products you managed performed very well this year, and you did not capture the individual stocks in the pro-cyclical sector at that time, but in the second quarter, you successfully allocated popular sectors such as photovoltaics, new energy, and non-ferrous metals, can you interpret the logic of your overall portfolio allocation and individual stock selection at that time?
Wang Peng: Configuration: new energy vehicles, wind power, photovoltaics, etc. There is no difference between individual stock selection and long-term, and the probability of buying performance exceeds expectations is high.
Q10 Everbright Wealth Management: Observing that under the hot market of medicine and consumption in 2020, you actually did not allocate too much to these two sectors, while the valuation of medicine and food and beverage last year was at a relatively extreme level, and with the valuation of small and medium-sized market capitalization this year has been at a relatively cheap level, will you be different in the overall industry allocation in the fourth quarter or will the industry allocation and individual stock allocation be more dispersed or more concentrated?
Wang Peng: Don't consider the difference between style and size, just look at the industry boom, to put it bluntly, the probability of performance exceeding expectations.
Q11 Everbright Wealth Management: Where do you think the next big opportunities are in 2021? Looking ahead, what do you think are the investment opportunities and risks in the market? What industries are you optimistic about in the future?
Wang Peng: Optimistic about new energy vehicles, wind power, photovoltaics, military upstream components, as well as consumer and pharmaceuticals that have fallen and their stock prices have been fully adjusted but their profit growth rate has not fallen down.
Fourth, the layout of new products
Q12 Everbright Wealth Management: Is there anything different about the first product on October 8 and your previous products? What are the industries or sectors that the product will focus on next?
Wang Peng: There is no difference, new energy vehicles, wind power, photovoltaics, military components.
Q12 Everbright Wealth Management: What is the pace of opening positions for new products?
Wang Peng: The same investment strategy, low position to play 3-5 points of safety cushion, and then normal high position investment.
Risk Warning and Disclaimer
The above views only represent the personal views of the fund manager, do not represent the views of the fund manager, and do not constitute actual investment advice. This material is only service information, opinions are for reference only, does not constitute any substantive advice or commitment to investors, nor is it any legal document. Before investing in the Fund, investors should carefully read the Fund's "Fund Contract", "Prospectus" and "Product Information Summary" and other fund legal documents, fully understand the risk-return characteristics and product characteristics of the Fund, carefully consider the various risk factors existing in the Fund, and fully consider their own risk tolerance according to their own investment objectives, investment period, investment experience, asset status and other factors, and rationally judge and prudently make investment decisions on the basis of understanding the product situation and sales appropriateness opinions. Independently assume investment risk. The market is risky and investments need to be cautious.
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