Ten years of precipitation, brilliant sublimation! Oriental Fund Li Rui: Investing is a long-term practice

According to data from the Association of Passenger Vehicles, wholesale sales of new energy passenger vehicles reached 246,000 units in July this year, up 5.1% month-on-month and 202.9% year-on-year. In addition, the wholesale number of new energy passenger cars was 1.339 million units, an increase of 227.4% year-on-year from January to July. Stimulated by the superimposed policy of production and sales exceeding expectations, the certainty of the prosperity of the new energy automobile industry chain and the future development trend has been continuously improved.

The new energy vehicle industry is a typical emerging technology industry, the rapid change, the number of innovations, the complexity, to learn to simplify the complex, grasp the main contradictions is particularly important. Use industry thinking, cyclical thinking and marginal thinking to think about industry trends, and choose high-quality companies to grow together. It is understood that Li Rui of the Oriental Fund, since 2011, has been immersed in the research and investment of the new energy vehicle industry, from the researcher period all the way to the fund manager, ten years of precipitation, brilliant sublimation. Based on years of industry research, the Oriental New Energy Automobile Theme Fund managed by Li Rui of Oriental Fund has a very offensive performance.

According to the second quarterly report of the fund, as of June 30, 2021, the returns of Oriental New Energy Vehicle in the past three years and nearly one year were 180.41% and 129.68%, respectively, and the performance comparison benchmarks for the same period were 129.51% and 85.43%, respectively, and the past six months also soared by 31.78%, and the performance comparison benchmark for the same period was 22.12%; According to Haitong Securities data, the increase in the latest year and the last two years of Oriental New Energy Vehicle ranked first and second in the mixed category of strong stocks, respectively, 1/772 and 2/572, respectively. Since the transformation of the fund on June 21, 2018, the size of the fund has also increased from tens of millions to more than 10 billion yuan.

Li Rui of the Oriental Fund believes that investment is a long-term practice. As a staunch long-termist, Li Rui said that investment on the one hand to look up at the stars, on the other hand to be down-to-earth, the former is long-term, the latter is focused, do investment, do research, it is very important to maintain curiosity; Investment is a process of continuous accumulation and evolution, to wait and stick to the right path, to learn all the time.

In terms of the composition of the investment framework, Li Rui of Oriental Fund said that its investment style is value growth; On the framework, dilute the macro, start from the medium and long-term perspective, start from the meso industry comparison, based on the medium and long-term industrial trends and short-term industrial prosperity, from the bottom up to choose the growth, certainty, sustainability, growth quality of the company. In a word, respect the industry trend and choose a high-quality company.

In terms of portfolio construction, Li Rui of Oriental Fund believes that portfolio construction should meet the three most: the best company, the company with the greatest change, and the company with the best supply and demand relationship. In addition, post-investment management is also part of systematic investment, and positions should be re-examined regularly, avoid preconceptions, avoid linear thinking, maintain bold assumptions on an objective basis, be careful to verify, and correct deviations when necessary.

When it comes to the development of the new energy automobile industry, Li Rui of the Oriental Fund believes that from the perspective of industry, the industrial progress of the new energy vehicle industry in recent years is very huge. New energy vehicle products have become the integrator of the energy revolution and the scientific and technological revolution, and the growth, certainty and sustainability of the new energy automobile industry are very strong, which is the golden track in the next decade.

From the perspective of life cycle, the development of the new energy automobile industry has entered a new stage, the driving force of industry development from policy to product switching is basically completed, with the continuous improvement of the penetration rate of countries around the world, it will enter the stage of nonlinear acceleration after surpassing the critical point; In addition, the industry trend of smart cars has become increasingly clear and will become another industry with huge investment opportunities.

Li Rui of the Oriental Fund said that it is possible to obtain excess returns by finding the main contradictions and core variables at each stage of industry changes. From the perspective of the industrial structure, China has the opportunity to overtake in curves. Achieving the curve overtaking of the automotive industry through new energy vehicles was once a national strategic goal, and in the face of the global resonance industry trend, the opportunity for China's perfect industrial chain to support the world is also very large, optimistic about the long-term investment value of the new energy automobile industry.

Remarks: The Oriental New Energy Vehicle Theme Hybrid Fund was established on June 21, 2018, which was transformed from the original Oriental Growth Small and Mid Cap Hybrid Fund, Mr. Li Rui has served as the fund manager of the Fund since the same day, and the net value growth rates from 2018 to 2020 are:-22.21%, 27.42% and 116.30%, respectively, and the performance comparison benchmark yield in the same period is -20.75%, 35.80% and 77.60%; The scale of Oriental new energy vehicles was 10.217 billion yuan, and the non-cargo scale of Oriental Fund was 38.639 billion yuan; (Data source: fund regular report); Orient New Energy Automobile Theme Fund ranked 1/772 and 2/572 of the strong stock hybrid type in the latest year and the last two years respectively (data source: Haitong Securities - Fund Performance Ranking (2021-07-01), deadline: 20210630; Evaluation date: 20210630).

Investment is risky and investment needs to be cautious. A publicly offered securities investment fund (hereinafter referred to as "fund") is a long-term investment tool whose main function is to diversify investment and reduce the individual risks associated with investing in a single security. Unlike financial instruments such as bank savings that can provide fixed income expectations, when you buy a fund product, you may either share the income generated by the fund investment by holding shares, or you may bear the loss caused by the fund investment. Before making an investment decision, please carefully read the product legal documents such as the fund contract, the fund prospectus and the fund product information summary and this risk disclosure, fully understand the risk return characteristics and product characteristics of the fund, carefully consider the various risk factors of the fund, and fully consider your own risk tolerance according to your own investment objectives, investment period, investment experience, asset status and other factors, and make rational judgments and prudent investment decisions on the basis of understanding the product situation and sales appropriateness opinions.

This article originated from Capital State