Before Huiquan Fund moved into Tengda Building, Liang Yongqiang and Yang Yu had been thinking about a question - how to build a public fund company that can be held by holders? As the core leader of Huiquan Fund, they have found the answer - while doing a good job in investment, controlling the level of drawdown, so that holders can hold it and make money, "wine is not afraid of deep alleys". This is not only the responsibility of practicing public funds, but also the original intention of their establishment of Huiquan.
Unlike many new fund companies, Huiquan is not eager to build explosive funds, nor does it pursue short-term rankings, they are more inclined to take one step at a time and achieve long-term stable returns in a down-to-earth manner. "We all think this is the last stop in our careers." At the end of the interview, Yang Yu said this to the Reporter of China Securities News.
Yang Yu (left) and Liang Yongqiang (right)
Liang Yongqiang, Ph.D. in Economics, Nankai University, has 19 years of experience in the financial industry. He once served as the deputy general manager of the investment management department, the general manager of the quantitative investment department, the deputy general manager of the company, the director and general manager of the company, and the founding partner, general manager and fund manager of Huiquan Fund.
Yang Yu, Master of Economics from Nankai University, has 21 years of experience in the financial industry. He was the Managing Director of Harvest Fund Management Limited, the Chief Investment Officer of SmartBeta and Quantitative Investment, and the founding partner and fund manager of Huiquan Fund.
Stronger performance is fundamental
In 2020, Yang Yu left the Harvest Fund he had been fighting for many years and opened a new page in his life. Along with Yang Yu was Liang Yongqiang, who enjoyed the title of "Three Musketeers of Chinese Merchants".
As witnesses of the development and growth of the asset management industry, Liang Yongqiang and Yang Yu clearly realized: "The core of public funds is to do a good job in investment and make money for customers. Especially in the context of the fund out of the circle in the past two years, as long as the investment is done well, the wine aroma is not afraid of the deep alley. Based on this, at the institutional level, they have laid a solid foundation for "long-distance running".
In their view, some fund managers are easy to split a marathon into 420 sections for a 100-meter sprint, and the short-term phenomenon is very important: whether it is a fund manager or a general manager of a fund company in the public offering industry, they are professional managers, and there are assessments during their tenure, and if they do not meet the target, they will be replaced. "This is also the original intention of huiquan's establishment, as an individual fund company, we are shareholders ourselves, there is no need to account to the board of directors, so we do not assess short-term performance, only simply pursue long-term performance." The name of Huiquan Fund also comes from this, and several founders hope that the performance of all its products in the future can be like a trickle of spring water, accumulating bit by bit. They believe that the bits of trust will converge, and the return will eventually become a sea.
In pursuit of long-term performance stability, the stability of core employees, including key personnel of the investment research system, is particularly important. At present, the equity structure of Huiquan Fund is mainly based on the shares held by the promoter and the employee shareholding platform, and the core team is composed of people with senior experience and professional ability in the public fund industry, and the shares of the employee shareholding platform account for a relatively high proportion of similar companies. "The core asset of the fund company is people, so we must give employees more incentives." Huiquan is a fund company held by natural persons, and various incentives such as equity incentives are very competitive among peers, and three equity incentive platforms have been set up now, and we will continue to do so in the future. Huiquan's two founding partners said.
But more realistically, for sub-new fund companies, creating a blockbuster fund with high short-term performance means a swarm of follow-up funds, and the fame and status in the industry are also expected to rise to a new level. However, Huiquan Fund is not eager to act as a "dark horse". Between the explosion and the stability of performance, they pursue stability. "We hope that every step will come naturally, participate in every stage of the marathon at a uniform speed, and not pursue the product to run ahead in a short period of time in a certain year." As long as we can persist, we will still take it step by step. The two founding partners said.
"Bit by bit" is reflected in all aspects of Huiquan Fund, as small as the name of each conference room, named by "integrity", "respect", "enterprising" and "win-win". "This is part of Huiquan culture. The asset management industry is an industry that operates trust. Integrity, on behalf of the entrustment of people, on behalf of the financial management must be diligent and responsible; respect, on behalf of the fund company to be people-oriented, Huiquan people to respect everyone; enterprising means to think of enterprising to have the future; and win-win is the holder, strategic partners, employees and all the company's win-win situation. ”
"Active" and "quantitative" investment are deeply integrated
Although they have been in the industry for nineteen years and managed money for tens of millions of customers, when it comes to the mentality of investment, Liang Yongqiang and Yang Yu still describe it as walking on thin ice. "Manage money for ordinary investors, this money may be their pension money, or it may be the education funding of the next generation, the responsibility of managing well is heavier than Taishan, and we must adopt a more cautious attitude." Once the holder cannot hold it, the redemption will cause permanent losses, so the performance fluctuates greatly, and the impact on the holder is actually very large. ”
"Many funds do not have low yields, but the probability that their holders can make money is very small, which is also the pain point of 'funds make money, basic people do not make money' in the public fund industry." Therefore, as a fund manager, it is necessary to let the holders earn money and let them hold it. ”
It may seem simple, but it is not easy to really "let the holder hold it". So, how can you "hold it"? The two partners said that as long as they have been surviving in the market, they will eventually wait until the day of blossoming, and the fundamental meaning of survival is to control the maximum retracement level.
This involves another question, how to control the maximum drawdown of the product? They further said that risk control drawdowns are achieved through quantitative methods, including indicators set in advance such as industry style deviations, individual equity heavy deviations, expected volatility, performance benchmark tracking errors, and maximum drawdowns. "Risk control emphasizes discipline, and discipline can be achieved in the best state by quantitative methods, so the quantitative way helps the fund control the level of drawdown through risk control."
Quantitative assistance is not simply reflected in this, but also includes "demining", preferring the stock pool, and amplifying the investment ability of fund managers. First, the targets that are prone to detonation are not only ST stocks, but also potential risk targets that need to be eliminated in advance. In the context of the registration system, the value of shell resources will gradually disappear, and companies with poor quality will have no future; second, establish a multi-dimensional stock selection system, including fundamental indicators such as valuation, financial statements, growth, etc., as well as behavioral characteristics such as research and analysis, momentum, liquidity, volatility, turnover rate and other behavioral characteristics of buyer analysts; third, according to the stock selection preferences of each fund manager, form their own quantitative algorithms, and select stocks for their primary selection, which is convenient for fund managers to choose the best among the best.
In terms of initiative, what needs to be done is to coexist with social needs and industrial trends. "From research to investment requires a long-term accumulation process, this process is actually the recognition of oneself, all external things are like mirrors, the essence is to look at themselves, based on external changes and then judge." Therefore, to a certain extent, the direction of investment is also a problem that emerging industries appear at a certain stage. Liang Yongqiang pointed out that at the current stage, from the perspective of industrial space, the degree of data, intelligence and scenarioization is getting deeper and deeper, and the new model is based on the needs of people and things.
In Liang Yongqiang's view, behind each type of industry, there is a process of changing social needs, and once new needs appear, the matching degree of social resources will accelerate into the industry. He believes that future opportunities can be divided into three categories according to this: one is the demand that has been met, that is, the continuation of core assets, if the performance growth rate is sustainable support, it is also the process of strengthening; the second is the demand that is being met, that is, some potential leaders, in smaller industries, entering the process of accelerated integration of the industry; the third is the demand that has not yet emerged, that is, the company that is still in a small market value, the new expression mode after social data or intelligence to a certain extent.
He compares the judgment of social needs to observing the direction of the river, where the direction of the flow cannot be seen, and can only be seen clearly by standing at a certain height. "From a historical point of view, the evolution of human society and emerging industries is the embodiment of the process, not the result, so at a certain stage, a certain organizational model will be formed."
Based on the understanding of demand, Liang Yongqiang's method of selecting companies from emerging industries starts from the five dimensions of Sun Tzu's Art of War: "Dao, Tian, Earth, General, and Law": "Dao" refers to corporate values; "Tian" represents the policy direction or social evolution direction; "Land" refers to the layout of listed companies including people, assets, geographical location, etc.; "Will" represents the management of enterprises; and "Law" refers to all institutional systems, including reward and punishment systems.
The long-term performance of A shares will tend to be balanced
The model of "taking the initiative to take the helm and quantitative escort" is quite rare in the public fund industry and has also aroused certain doubts. In this regard, Liang Yongqiang said that just like eating, some people use spoons, some people use chopsticks, initiative and quantification are just two tools, and the core reflects the idea of systematic investment. "Relatively speaking, the short-term holding experience is something I have diluted before, and after two years of rest, I will focus on it later, and quantification can also play a role in it."
Yang Yu also believes that quantitative investment can handle massive data, investment breadth full coverage, strong discipline; while the depth and forward-looking of active investment can not be achieved by quantitative investment, both have their own advantages, and can achieve advantages through deep integration.
Under this line of thinking, Huiquan Fund's first public offering product, Huiquan Strategy Preferred, was recently issued, using a dual fund manager allocation, jointly undertaken by Liang Yongqiang and Yang Yu. Statistics show that the public funds managed by Liang Yongqiang have won eight "Golden Bull Awards" and Yang Yu has won seven "Golden Bull Awards". From the perspective of the whole market, among the more than 2400 public fund managers, only 4 fund managers have won the "Golden Bull Award" 8 or more times, and 4 fund managers have won 7 times. For investment objectives, Huiquan Strategy Preferred Hybrid will pursue investment returns that exceed the benchmark of fund performance and long-term steady appreciation of fund assets through proactive asset allocation and investment management under the premise of strictly controlling portfolio risks. In addition, the fund can also invest in the Hong Kong stock market, including a selection of Hong Kong stocks with good fundamentals and reasonable valuation levels into the stock portfolio.
As for the establishment of the new fund, Liang Yongqiang said that it is mainly divided into two stages: first accumulate the "safety cushion", reach the target net value, and then combine the market conditions at that time to allocate more flexible industry targets.
Speaking of the A-share market, Liang Yongqiang believes that the current market is still in the early summer, similar to the state of the stock market in 2003-2004, the index has not changed much, and the structural opportunities are large. "The biggest change in the past two years is the emergence of the registration system, and the probability of the entire market rising and falling in unison is relatively small, unless there is a particularly large systemic change." At present, the overall valuation is still in the median, which is not high compared to historical data, and the valuation of the sector is different. In the long run, the market performance will be relatively balanced, the degree of volatility will decline, the index will not rise much, and more attention will be paid to the development of the industry in the future, as well as the development stage of each segment. He pointed out.
In the context of structural market conditions, Liang Yongqiang is optimistic about new consumption, new technology, new energy and large financial sectors. For the large financial sector, he believes that China will develop in the direction of innovation-driven, which requires the capital market to play a role in optimizing the allocation of resources, using market forces to stimulate innovation vitality, improve industrial operation efficiency, and realize the transformation of development momentum to innovation-driven.
Editor: Wang Zhuying
