On April 13, some of the heavy stocks of Dong Chengfei, deputy general manager of Industrial Securities Global Fund, experienced a flash crash. There are market rumors that because Dong Chengfei is about to leave, so the heavy stocks have suffered "fixed-point explosion" (for details, see "Flash crash stop, Dong Chengfei suffered "fixed-point explosion"?). Institutions heavy stocks, began to ship smashed the plate").
On April 14, the Industrial Securities Global Fund told CSI Jun: "The recent rumors in the market about the departure of Mr. Dong Chengfei are untrue. At present, the investment and research team of industrial securities global funds is stable. ”
On the morning of April 14, the WeChat public account of the Industrial Securities Global Fund also posted the content of Dong Chengfei's lecture at Fudan University on the evening of April 13.
Dong Chengfei is teaching. Source: Industrial Securities Global Fund public account
Caught in rumors of departure
On the afternoon of April 13, the news that Dong Chengfei's heavy stocks were "fixed-point explosion" was reported in major WeChat groups. The rumor is to the effect that Dong Chengfei's heavy stocks SF Holdings, Songcheng Performing Arts, Meinian Health, Kanghong Pharmaceutical, and China Zhongwai have frequently encountered flash crashes because Dong Chengfei may leave the Industrial Securities Global Fund.
Image source: Weibo
However, CSI Jun verified the information and found that the above-mentioned situation of heavy stocks is not completely in line with reality. Compared with the net value trend of Dong Chengfei's fund under management, there are also doubts about whether the above-mentioned individual stocks are not Dong Chengfei's heavy stocks.
Wind data shows that since the Spring Festival, the net value of Xingxin Vision, which Dong Chengfei managed alone, has fallen by 8.09%, which is significantly smaller than the market rumored flash crash of heavy stocks.
New Horizons recent trends
Image source: Wind
According to the previous fund annual report, the fund's stock position at the end of 2020 was 69.37%, and the top ten heavy stocks were Zijin Mining, Sanan Optoelectronics, China Shenhua, Poly Real Estate, Vanke A, Sany Heavy Industry, Beijin New Material, Ping An of China, SF Holdings and Dinglong Shares. Kanghong Pharmaceutical is the 11th largest heavy stock, Meinian Health is in the 12th place, and Songcheng Performing Arts is ranked 19th.
On April 14, among the above-mentioned individual stocks that were named, China China Exemption and other stocks began to rebound, but Kanghong Pharmaceutical once again fell to a halt, and as of press time, there were nearly 140,000 sell orders on the stop board.
Source: Wind
Still teaching to share value investments
CSI Jun noted that the WeChat public account of the Industrial Securities Global Fund, which was updated on April 14, recently pushed an article - "[Dong Chengfei's Latest Sharing] Fudan University School of Management April 13 Value Investment Course Notes".
Source: Industrial Securities Global Fund public account
It is reported that this is the Fudan Management Institute X Cixing Securities Global Investment Value Course, jointly initiated by the Industrial Securities Global Fund and Ningquan Assets, for students of the School of Management of Fudan University who are interested in engaging in investment careers in the future, sharing the value investment concepts, experiences and cases of front-line investors with 12 courses spanning two semesters. The course will be taught by Dong Chengfei, Chen Jinquan, deputy general manager of CIS Global Fund, and Xie Zhiyu, assistant general manager, and will also invite well-known guests from the industry to share.
In the evening, Dong Chengfei shared his personal experience of seeing, hearing and practicing in the investment market for many years with the theme of "How to Learn from Various Types of Mistakes", sorted out 10 common mistakes from junior researchers to fund managers, and conducted 120 minutes of in-depth communication with students.
The content of the article shows that Dong Chengfei said that last year, no one made a mistake, everyone was a stock god, and everyone summarized various short and fast concepts and methods; this year's market is the best time to summarize and reflect.
In the course content, Dong Chengfei shared four common mistakes in research analysis and six common mistakes in value investing, namely:
Research and analysis often make mistakes - heavy financial modeling, light qualitative analysis; linear static thinking, simple extrapolation; focus on demand analysis, ignore supply analysis; and long-term short-term prosperity.
Common mistakes in value investing – whether picking up "cigarette butts" is feasible; equating value investing with undervalued investments; investing in companies with flawed business models; investing in companies with fragile moats; investing in companies with flawed governance structures; investing in companies with inadequate margins of safety.
Dong Chengfei said that investment is not a smooth road. Every choice has a probability of being right and wrong. In investing, even the most mature investors make mistakes. Buffett, the stock god, has said that making mistakes is part of investment, and frankly said that he has "made a lot of mistakes." Because of this, the excellent investors who constantly learn, reflect, evolve, and prove themselves through time and performance are even more valuable.
EDIT: Leaf Pine