Sou Hu Cai Jing·2025-07-23 13:10Core Viewpoint - In the second quarter of 2025, public funds significantly retreated from the liquor sector, particularly the baijiu segment, with a notable decrease in holdings among major funds [1][2][4]. Group 1: Fund Holdings and Changes - The proportion of baijiu stocks in major consumer funds dropped sharply, with active fund holdings decreasing by 1.16 percentage points to 1.54% [2]. - Specific stocks saw substantial reductions in fund holdings: Kweichow Moutai down 14.9%, Wuliangye down 30.1%, and Luzhou Laojiao down 34.7% [2][4]. - By the end of Q2 2025, Kweichow Moutai's active fund holding ratio was 1.76%, down 0.49 percentage points; Wuliangye was at 0.77%, down 0.43 percentage points; and Shanxi Fenjiu was at 0.68%, down 0.28 percentage points [4][5]. Group 2: Fund Manager Actions - Four leading fund managers exhibited divergent strategies, with an overall trend of reducing baijiu stock holdings [6][7]. - Jiao Wei reduced positions in several baijiu stocks but slightly increased Kweichow Moutai holdings, making it the top holding in his fund [6]. - Zhang Kun from E Fund took a contrary approach, significantly increasing holdings in Wuliangye, Kweichow Moutai, Luzhou Laojiao, and Shanxi Fenjiu, with Luzhou Laojiao seeing an increase of 647.9 million shares [1][8]. Group 3: Market Trends and Valuations - The overall market for baijiu stocks is under pressure, with a noted decline in the fundamental performance of the sector [6][11]. - The concentration of top 20 fund holdings decreased, with the market value of these holdings dropping by 1.13 percentage points to 15.01% [5]. - Despite the increase in holdings by some funds, the market value of Kweichow Moutai and Wuliangye decreased due to stock price fluctuations [10].