In recent years, an important change in the mainland public fund market has been cross-market investment. This means buying excellent companies that truly represent China's industry, not only to invest in the A-share market. This feature is particularly evident in investments in technology stocks. Most of the technology stocks in A-shares are partial to hardware, and most of the Internet companies are listed in the United States and Hong Kong. Investors are most concerned about how to find a fund manager with a truly cross-market vision.
And what does a fund manager need to go through to go from a novice researcher to a fund manager with a mature investment framework, a firm style, a clear logic, and a cross-market vision?
For Liu Ping, director of the equity investment department of Huaxia Fund, the Huaxia Mobile Internet Fund she managed ranked first in the same category in the past 3 years, how does such a fund manager with a global vision and cross-market investment experience answer these questions?
Note: The ranking in the 3-year period from 2018 to 2020 ranked 1st in the same category (data source: Galaxy Securities Fund Research Center, as of 2020.12.31, the range of similar rankings is 1/25, product classification: qdii mixed fund (class a))
Forward-looking perspective Research steadily
Liu Ping is a researcher of the first batch of tmt buyers in A-shares, with 14 years of experience - 5 years of research and 9 years of investment. (Data source: Huaxia Fund) When he entered the industry, the market at that time was still keen to make money from "poor information", but Liu Ping, a researcher at ST, was based on fundamental research at the beginning.
At that time, tmt was not yet a popular industry, but Liu Ping chose to do something that was not urgent from the perspective of the time, but it was very important in the long run: covering the tmt industry one by one, that is, the industry represented by computers, electronics and media, which stemmed from her style of doing things, "forward-looking and down-to-earth". Liu Ping has a habit that she still has to this day, she has a "checklist", by recording her past mistakes, avoid stepping into the "same river", "knowing where you will die will not go again" . At the same time, she has gradually improved her investment framework and continued to iterate in 9 years of investment research.
When she first entered the industry, she refused to "trade profitable" shortcuts through "poor information", and when she found opportunities in the TMT industry, she devoted herself to research and in-depth communication with personnel at all levels of the enterprise. At that time, she wrote a meticulous professional research report on a technology company, which shocked even the highest level of the company. Thirteen years later, the company's market value has risen 100 times – confirming Liu Ping's vision. Liu Ping was the first batch to dig out the "Bole" of science and technology white horse stocks such as Kingsoft Office, iFLYTEK, Kingdee Software, and Guanglianda, and also repositioned new Internet leaders such as Bilibili very early, with rich profits. (The above individual stocks are not used as investment recommendations and do not represent the actual investment direction)
Today, the development of information pipelines has compressed the "information gap" to almost zero, and making money by relying on "information difference" has become making money by "cognitive difference", so that Liu Ping's deep internal skills that he has cultivated for many years have blossomed.
Full commitment Outstanding performance
5 years of industry research has given her a solid foundation, and she began to manage the QFII Fund Account in 2012. Liu Ping, who is in the "bull market", shines in his own field of expertise and wins the favor of overseas investors. However, after becoming a public fund manager in 2015, the sudden "bear market" and the incompatibility with the "short-term ranking mechanism" made Liu Ping feel that "that year was more familiar with the rules of the public fund ranking game, but it did not help much to improve its own investment and research capabilities." She continues to devote herself to research, eliminating the influence of the ranking mechanism, and insisting on in-depth research and continuous tracking of individual stocks. It is worth mentioning that many enterprises that meet Liu Ping's investment framework and stock selection criteria have survived the big wave, "this is the value of research," Liu Ping said.
2017 is a critical time node. The Huaxia Mobile Internet Fund, issued at the end of 2016, can not only invest in A-shares, but also buy excellent companies with Hong Kong stocks and US stocks through QDII quota. This year had a far-reaching impact on Liu Ping, managing Huaxia Mobile Internet, allowing Liu Ping to change his research on Hong Kong stocks and US stocks from "interest" to "work", and truly transforming his research results into performance. Since its establishment, Huaxia Mobile Internet RMB (qdii) has achieved 172% of the income, obtained the three-year 5-star rating of Morningstar, with an annualized return of 25%, ranking first in the same category.
(Performance data source: Huaxia Fund, reviewed by the custodian bank, as of 2021.05.31; ranking data from Galaxy Securities, as of 2020.12.31, the range of similar rankings is 1/25, product classification is: qdii hybrid fund (class A); rating data source: Morningstar, as of 2021.4, fund type: open-end fund - global equity-debt hybrid. Annualized return formula: Interval annualized rate of return = (1 + range return) ^ (365 / actual number of natural days in the range) -1. Past performance of a fund is not indicative of its future performance, the performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance; the results of fund evaluation are not projections of future performance and should not be considered recommendations of investment funds)
Not only that, because Liu Ping has experienced multiple dimensions of experience from the outside in (qfii investment), from the inside out (qdii investment), pure A-share investment and overseas investment, her investment strategy framework has been tempered more mature and comprehensive. She experienced three rounds of bull and bear formation of three phases of resonance, four-storey high-rise buildings, five elements of this set of systematic investment philosophy, is a valuable asset.
International perspective Dig deep into treasure
Looking back on the operation of Huaxia Mobile Internet, she sighed: "It is very important for me to establish a global vision to do investment research. ”
"The most important thing is that I see what the best companies are doing, what kind of organizational restructuring and business direction they are doing." Mapping research is the key, when you see the appearance of the tested excellent enterprises in the overseas market, you will be more aware of the standards of excellent enterprises, and then select the stocks that meet the requirements in the A-share market. Liu Ping's investment style has also changed from casting a wide net to Ning Que and not indiscriminately, "I would rather take cash than choose a company that I can't look at from my five-factor stock selection standards."
At present, the Huaxia Hong Kong Stock Frontier Economy (qdii) (Class A 012208, C 012209) to be managed by Liu Ping has ushered in its initial offering, which is in line with the investment strategy upheld by Liu Ping, and the new fund strives to establish a stock selection and timing system through the understanding of the resonance of the industrial cycle, the policy cycle and the third phase of the stock cycle, in order to pursue sustainable and graspable returns. The direction of frontier economic investment in Huaxia Hong Kong stocks is the frontier economic field represented by the three sectors of science and technology, medicine and consumption, which is the core driving industry of China's economic growth in the future.
Liu Ping believes that in her three-phase resonance theory, the industrial cycle is the most important, "in the past 5 years, I have chosen an industry that I think is booming, that is, cloud computing." In the cloud computing industry, tob's enterprise-level service saas (software-as-a-service) is the treasure she found, "now what excites me the most is to find a technology company with a stable business model."
Specifically, the advantage of SAAS is that in each subdivision of the industry - whether it is pharmaceutical, manufacturing, consumer industry, or functional human resource management, or project management, etc., can find the corresponding company, and has Liu Ping's most concerned about the "stable profit model": because the next year under the subscription system is as high as 85% or more, it can be described as a "consumer stock" in technology stocks.
Four-storey building, five major elements
Business model pyramid
Liu Ping divides all companies into project type, product type, platform type and ecological type according to the different business models, as shown in the following figure, the stability of the business model is more and more stable from bottom to top, the company's texture is getting better and better, but the number of companies is getting smaller and smaller.
For the platform and ecological companies she likes, she is one in a hundred and one in a thousand, and the companies she prefers to hold positions for a long time are located in the middle and high levels of her business model pyramid.
At the same time, she has also established strict criteria for the selection of individual stocks, screening from the following five dimensions: stable profit model, the depth of the moat, whether there is pricing power, excellent corporate governance and small companies in the large market, which is her unique five-factor stock selection model.
Liu Ping's business model pyramid
Liu Ping believes that as a growth player, if the style of the fund can not deviate from the main style of the market in that year, it is expected to avoid the operation deformation due to excessive short-term pressure.
The mistake that growth fund managers are prone to make in the early stage of investment is to repeatedly jump between growth and value stocks in order to avoid the pullback of growth stocks, but it is easy to be trapped in the value trap when the growth stocks rebound, thus missing the investment opportunities of the growth stocks that they should get the most.
For this problem, Liu Ping will determine which type of stock will become the main force of the position according to the main style of the market that year. Liu Ping divides his growth stocks into two categories. The first type is the leading enterprises with solid fundamentals and clear profit models, the performance of such stocks is highly certain, and the peg (price-earnings ratio relative to the profit growth ratio) is relatively low, from 1 times to 1.5 times; the second type is the potential emerging growth type, high-peg companies, mainly concentrated in emerging fields and enterprises exploring emerging technologies and new models. Then, according to the judgment of the main style of the current market, the position is weighted and redistributed in two types of stocks.
While pursuing "stability" through the above methods, through the rebalancing in the market and the balance of the cross-market, according to the prosperity of the sub-industry, the position is rotated between the consumer electronics industry, the medical technology industry, the intelligent new energy automobile industry, and the independent and controllable military technology growth stocks, which can bring the flexibility of the net value of the fund through the explosive characteristics of the short-term performance of these sub-industries, and make the performance of the fund more "sharp".
The main investment direction of the frontier economy of Chinese Hong Kong stocks - science and technology, medicine, consumption, these three represent the frontier economy of the sector, Liu Ping believes that at present, Hong Kong stocks are located at the bottom of the consolidation period is the best period to build a position, in this range, the upward yield is greater than the downside risk, in the technology sector, to b saas, to c Internet giants, and such as ar/vr and intelligent networked cars and other scientific and technological hardware innovation is her main investment. In the consumer sector, in the sports service, food and beverage, service industry and other sub-sectors, there are not only big opportunities for domestic consumption upgrading, but also the scarcity of targets and valuation cost performance unique to the Hong Kong stock market, and the probability of stability and increase in the next 1 year. In the pharmaceutical sector, the main line she is optimistic about is the demand for upgrading medical consumption and the main line of innovation in the mainland (that is, innovating new medical devices, innovative drugs, and the efficiency improvement of innovation and manufacturing brought about by pharmaceutical R&D outsourcing). Liu Ping believes, "In fact, in the field of medicine, I also buy 'innovation' and buy 'consumption upgrade'."
Liu Ping has an original "playground theory", she divides the individual stocks into two categories. One is the carousel type, and the feeling of holding such individual stocks is as soothing and beautiful as riding a carousel, which is like the two core disks formed by tob's enterprise-level service company (SAAS) and toc's mobile Internet giant, which makes the net value of the fund "stable". The other category is the individual stocks of the Sky Flying model, some stimulus, such as consumer electronics and new energy vehicles, such companies will have a short-term performance explosion, bringing about a phased rise in stock prices, which is her four major wheels, bringing the "sharpness" of the net value of the fund.
"Since its establishment at the end of 2016, Huaxia Mobile Internet has an annualized yield of more than 25%, and strives to have a small drawdown in the bear market, and the bull market is also offensive, thanks to my implementation of the theory of investment playgrounds." She summed it up this way.
Note: Annualized rate of return formula: interval annualized rate of return = (1 + range return) ^ (365 / actual number of natural days of the range) -1
Two core disks
(The above individual stocks are not used as investment recommendations and do not represent the actual investment direction)
Four roulette wheels
(The above does not mean the final actual direction)
During the exchange, Liu Ping's investment philosophy was very clear, which made people feel empowered. Liu Ping believes that investment is simple, but when clear thinking cares about complex reality, when simple language cares about huge concepts, the cognition of the world can go straight to the theme, no longer obscured by fog, and become clearer with time.
At present, with the reform and innovation of the issuance system, the market value structure of the Hong Kong stock market is currently undergoing qualitative changes, benefiting from the return of Chinese stocks and the listing of cutting-edge economic enterprises in Hong Kong, the Hong Kong stock market has begun to carry out a historical transformation from low valuation-driven to frontier economy-driven, standing at this important node, the new fund of Huaxia Hong Kong-stock frontier economy that focuses on investment in science and technology, medicine and consumption is also more worthy of attention.
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Huaxia Hong Kong Stock Frontier Economic Risk Tips: 1. The Fund is a hybrid fund, its expected risk and expected return are lower than those of equity funds, higher than ordinary bond funds and money market funds, and belong to medium risk (r3) varieties, and the specific risk rating results are subject to the rating results provided by fund managers and sales agencies. 2. The Fund has special investment risks such as exchange rate risk, country-specific risk and emerging market risk faced by global market investments. 3. The Fund may invest in stocks subject to the Hong Kong Stock Connect and will face the unique risks arising from differences in the investment environment, investment target, market system and trading rules under the Hong Kong Stock Connect mechanism. 4. 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, and fully consider their own risk tolerance according to their own investment objectives, investment period, investment experience, asset status and other factors, and on the basis of understanding the product situation and sales appropriateness opinions, rationally judge and prudently make investment decisions, and independently bear investment risks. 5. The Fund Manager does not guarantee that the Fund will be profitable or guarantee a minimum return. The Past Performance of the Fund and the level of its net worth are not indicative of its future performance, and the performance of other funds managed by the Fund Manager does not constitute a guarantee of the Performance of the Fund. 6. The fund manager reminds investors of the principle of "buyer's own responsibility" for fund investment, and after investors make investment decisions, the investment risks caused by the operation status of the fund, the fluctuation of the listed trading price of the fund shares and the changes in the net value of the fund shall be borne by the investors themselves. 7. The CSRC's registration of the Fund does not indicate that it makes a material judgment or guarantee of the investment value, market prospects and returns of the Fund, nor does it indicate that there is no risk in investing in the Fund. 8. This product is issued and managed by Huaxia Fund, and the agency does not assume the responsibility for investment, redemption and risk management of the product. 9. The fund is risky and the investment needs to be cautious.