Core Viewpoint - The article emphasizes the importance of "certainty" in investment, particularly in the context of growth investing, where uncertainty is prevalent. The focus is on selecting industries and companies with favorable supply-demand dynamics and investing at reasonable valuations to achieve better risk-reward ratios [1][15]. Investment Strategy - The investment approach is characterized by a focus on growth stocks, particularly during the "1-10" phase of industry cycles, where companies experience significant revenue growth and performance realization [3][9]. - The manager highlights the necessity of buying stocks at good prices, as even excellent companies can lead to losses if purchased during overvaluation periods [13][14]. - The strategy involves continuous monitoring of industry cycles and company fundamentals to adapt to rapid changes in the market [4][5]. Industry Insights - The manager has observed that many industries have their own supply-demand cycles, which are influenced by macroeconomic conditions and industry transformations. This cyclical nature is crucial for understanding investment opportunities [2][8]. - The article discusses the importance of recognizing the "1-10" stage in industries, where demand drives growth, and the subsequent phases where supply-demand imbalances can lead to price declines [9][10]. Risk Management - The focus on minimizing drawdowns is highlighted, as not all market pullbacks can be recovered. The manager aims to control volatility and maintain a balanced portfolio across different sectors to mitigate risks [16][17]. - The article mentions the importance of diversifying investments to avoid excessive exposure to any single industry, especially during downturns [16][17]. Market Trends - The manager reflects on past market cycles, particularly in the technology and renewable energy sectors, noting the volatility and the emergence of "ten-bagger" stocks that can subsequently decline significantly [2][12]. - The transition from renewable energy investments to artificial intelligence is discussed, indicating a strategic shift based on market conditions and emerging opportunities [12].

Core Viewpoint - The interview with the deputy general manager of the international business department of Southern Fund, Yun Lei, emphasizes a cautious and rational investment approach, focusing on low drawdown, low volatility, and moderate returns rather than chasing performance rankings [1][3]. Investment Philosophy - Yun Lei's investment philosophy has evolved from focusing on company growth and competitive advantages to prioritizing valuation and risk management [3]. - The investment strategy aims to avoid overly popular assets and instead focuses on companies with clear cash flow and stable returns [1][3]. Market Analysis - The Hong Kong stock market presents complex investment challenges, requiring a rational perspective to avoid misleading investors into chasing high prices [2][4]. - The liquidity in the Hong Kong market is relatively scarce, leading to weaker pricing efficiency and significant style rotation, which demands high adaptability from fund managers [3][4]. Risk Management Strategies - Two main strategies for managing risks in the Hong Kong market are identified: style rotation and diversified portfolio construction [4][5]. - The diversified approach aims to balance growth and value stocks, providing resilience against market fluctuations [5]. Investment Style - Yun Lei identifies as a value investor, focusing on low-valuation, high-quality cash flow assets, while considering growth stocks as more speculative [6][7]. - The investment strategy includes a preference for stocks with high cash flow yields and a cautious approach to high-volatility assets [7][8]. Future Plans - Southern Fund's international business department is focused on expanding its product line, including both active and passive cross-border investment products [9][10]. - The department aims to innovate within the asset management industry, particularly in developing Smart Beta index products for various markets [10].

Report Industry Investment Rating No relevant content provided. Core Viewpoints of the Report - The report analyzes the investment value of fund manager Peng Xinyang, highlighting his investment strategy of combining top - down and bottom - up approaches, with a preference for growth investment. His representative funds, Huashang Industrial Upgrade and Huashang Innovation Medical A, have shown excellent performance, strong stock - picking ability, and a growth - style portfolio allocation [1][3][4]. Summary According to the Table of Contents 1. Fund Manager Peng Xinyang - Peng Xinyang, a master of science from Tsinghua University, has over 14 years of securities experience, including 8.8 years of investment experience. He advocates a combined top - down and bottom - up investment strategy, focusing on growth investment. He currently manages three funds, with a total product scale of 452 million yuan as of the end of the fourth quarter of 2024 [1][10]. 2. Representative Products and Investment Strategies 2.1 Huashang Industrial Upgrade - It is a partial - stock hybrid fund established in 2006. Its investment strategy centers on industry upgrade, conducting long - term value investment by deeply exploring the value of listed companies benefiting from industrial structure adjustment and upgrade. The asset allocation is based on macro - economic analysis, and the stock portfolio construction includes industry upgrade analysis, industry analysis and configuration, and stock library management [11][13]. 2.2 Huashang Innovation Medical A - It is a partial - stock hybrid fund established in 2023, mainly investing in high - quality listed companies in the innovative medical field. It adopts a combined top - down and bottom - up stock - picking strategy, selecting stocks with good growth prospects and relative undervaluation through industry policy analysis, financial analysis, and company research [19][20]. 3. Excellent Performance of Fund Products - From August 30, 2024, to March 7, 2025, Huashang Industrial Upgrade had a cumulative return of 36.22%, with an excess return of 21.19% compared to the performance benchmark. Huashang Innovation Medical A had a cumulative return of 19.87%, with an excess return of 9.00% compared to the performance benchmark. The relative strength curves of both funds against the performance benchmark showed a steady increase [3][26]. 4. Outstanding Stock - Picking Ability of Fund Products - The stock - picking ability of the representative funds is strong. From 2023 to March 7, 2025, the quarterly heavy - position stocks of Huashang Industrial Upgrade and Huashang Innovation Medical A had significant excess returns compared to the Shenwan primary and secondary industry indices, and about half of the stocks had obvious excess returns [4][40][43]. 5. Growth - Style Portfolio Allocation of Fund Products - Huashang Industrial Upgrade focuses on TMT and pharmaceutical sectors. The top two primary industries in the latest annual report are electronics and national defense and military industry. Historically, the top three primary industries in average allocation are electronics, pharmaceutical biology, and computer. Huashang Innovation Medical A has the highest historical average allocation in medical devices, chemical pharmaceuticals, and traditional Chinese medicine. In terms of style, most of the stock positions of both funds are allocated in the growth sector, and Peng Xinyang prefers small - and medium - cap growth stocks [5][48][54].

Group 1 - The report emphasizes the application of DeepSeek's AI capabilities to reconstruct classic investment strategies in the domestic market, particularly focusing on the bond strategies of Salomon Brothers [1][12]. - DeepSeek successfully adapts Salomon Brothers' bond investment strategies to the domestic bond market by analyzing key factors such as expected yield, convexity, and duration for interest rate bonds, as well as spreads and premiums for credit bonds [1][21]. - The results indicate that DeepSeek's strategies enhance portfolio returns and Sharpe ratios through dynamic adjustments in the weight of interest rate and credit bonds [1][23]. Group 2 - The report highlights the adaptation of Berkshire Hathaway's (BRK) value investment strategy in the A-share market, focusing on long-term compounding, moat identification, and margin of safety [2][35]. - DeepSeek constructs a dual model for stock selection based on business models and financial metrics, outperforming the market by emphasizing brand strength, cost advantages, and moat characteristics [2][38]. - The report also discusses the simulation of ARK's growth investment style, showcasing a focus on disruptive growth sectors and the construction of strategies that leverage momentum and sector performance [2][46]. Group 3 - The report outlines the balance and switching between value and growth styles using DeepSeek, providing specific strategies for each style to adapt to varying market conditions [3][34]. - DeepSeek's "AI+BRK" strategy focuses on commercial value selection, which is beneficial during economic downturns, while the "AI+ARK" strategy emphasizes innovation and quality in growth stocks [3][52]. - The report concludes that the integration of AI with classic investment paradigms can preserve and extend the essence of these strategies across different market environments [3][30].