Group 1 - The core idea of the article is to explain the performance and characteristics of the proactive selection strategy, emphasizing its ability to outperform the market while managing risks effectively [1][21][66] - The proactive selection strategy is derived from the concept of actively managed funds, which are constructed by selecting a basket of fund managers to create an index for active funds [4][5] - The strategy focuses on selecting excellent fund managers from a well-structured talent pool within reputable fund companies, which includes veteran, mid-career, and emerging managers [8][9] Group 2 - The selection of veteran fund managers is based on three main criteria to ensure long-term performance [9] - Mid-career managers are identified through two main avenues: those with rich prior experience in asset management and those mentored by veteran managers [9][10] - The proactive selection strategy diversifies investments across different styles to mitigate individual risks and adjusts allocations based on valuation changes [11][14][18] Group 3 - The proactive selection strategy has consistently outperformed the market, with a cumulative return exceeding the CSI 300 Index by 7.08% as of October 2025 [21][66] - The strategy has a win rate of 66.67% against the equity fund index since its inception, although it has experienced periods of underperformance during specific market conditions [24][30] - The strategy avoids investing in loss-making stocks, focusing instead on quality stocks with strong profitability, which leads to better long-term performance [30][34] Group 4 - The article discusses two main methods for profit-taking within the proactive selection strategy: automatic rebalancing when certain assets are overvalued and overall portfolio adjustments when the market is deemed overvalued [57][61] - The strategy employs an automatic adjustment feature to help investors realize profits from overvalued assets while reinvesting in undervalued ones [58] - The proactive selection strategy emphasizes the importance of investing at favorable market valuations to enhance returns and reduce risks [42][45]

Core Viewpoint - The article discusses various investment styles that yield long-term returns, emphasizing the importance of selecting the right investment strategy based on valuation and growth potential [3]. Group 1: Investment Styles - Deep Value: Focuses on undervalued assets [3] - Growth Value: Emphasizes the quality of the company, typically investing in firms with high Return on Equity (ROE) [3] - Balanced: Considers both valuation and profit growth rate, prioritizing cost-effectiveness [3] - Growth: Concentrates on profit growth rate [3] - Deep Growth: Focuses on the growth potential of the company [3] Group 2: Fund Pool Construction - A fund pool is constructed to minimize individual risks, featuring a selection of fund managers under each investment style, similar to index fund construction [4]. - In case of fund manager changes, such as departure or retirement, a backup manager of the same style will be selected to replace them [4]. Group 3: Valuation Adjustments and Rebalancing - The active selection of advisory portfolios will consider valuations for rebalancing [5]. - Styles that are cheaper and more valuable will have a higher allocation in the portfolio, while overvalued styles will undergo profit-taking [5]. - The rebalancing of advisory portfolio funds is automated, requiring no manual intervention from investors, making it more convenient [5].

Core Viewpoint - The article discusses the performance and characteristics of the proactive selection strategy in fund management, emphasizing the importance of selecting skilled fund managers and the strategy's ability to achieve higher returns with lower risks compared to the market. Group 1: Fund Manager Selection - The proactive selection strategy focuses on selecting excellent fund managers, as investing in active funds essentially means investing in the fund manager [3][4]. - A strong fund company typically has a complete talent hierarchy of fund managers, including veterans, mid-generation, and new-generation managers [5]. - The first tier consists of veterans who have experienced multiple market cycles and are considered key targets for investment [5][7]. - The second tier includes mid-generation managers who may have less experience but show potential, often trained by veterans [5][7]. - The third tier consists of new-generation managers with less than three years of experience, who have not yet faced significant market downturns [5]. Group 2: Performance of Proactive Selection Strategy - The proactive selection strategy has consistently outperformed the overall market, with a cumulative return exceeding the CSI 300 Index by 7.08% as of October 2025 [17]. - The strategy's maximum drawdown is lower than that of the market, indicating a better risk-return profile [17]. - The strategy has a quarterly performance win rate of 66.67% from 2022 to 2025, demonstrating its effectiveness over time [19]. Group 3: Investment Behavior and Pricing - The article highlights the importance of buying at good prices, as even the best stocks can lead to losses if purchased at high valuations [33]. - The proactive selection strategy encourages investors to buy more during market downturns, effectively lowering their average cost [36]. - A high repurchase rate of 97.2% indicates that most investors continue to invest during bear markets, showing confidence in the strategy [42]. Group 4: Automatic Rebalancing and Profit-Taking - The proactive selection strategy includes an automatic rebalancing feature that helps investors take profits from overvalued assets and reinvest in undervalued ones [45]. - The strategy provides signals for profit-taking when the overall market is overvalued, allowing for a gradual transition to more stable investment options [49][50].

Core Viewpoint - The article discusses the current market trends, emphasizing the performance of different investment strategies and the importance of selecting fundamentally strong companies for long-term investment success [8][28]. Market Overview - The market experienced slight declines today, with minimal volatility, maintaining a rating of 4.9 stars [1]. - Large-cap stocks like the CSI 300 showed little fluctuation, while small-cap stocks faced more significant declines [2]. - Value style investments overall saw an increase, with dividend and value indices performing strongly [3][4]. Investment Strategy Performance - In the first half of the year, both active selection and index enhancement strategies outperformed the broader market indices, with active selection rising by 5% while the CSI 300 remained flat [8]. - Active selection strategies have shown a historical tendency to outperform the market approximately 60% of the time, indicating a cyclical nature of performance [9]. Stock Selection Criteria - The active selection strategy focuses on choosing stocks with strong profitability, measured by Return on Equity (ROE) [12][15]. - Companies are categorized based on their ROE into three indices: loss-making stocks (negative ROE), marginally profitable stocks (positive but below market average), and quality stocks (positive and above market average) [18]. - Historical data indicates that strong profitability leads to better long-term returns, despite occasional surges in loss-making stocks during specific market conditions [19][25]. Market Dynamics - There have been instances of speculative trading in loss-making stocks, notably in 2014-2015 and projected for late 2024, which can lead to short-term underperformance for quality-focused strategies [19][21]. - Such speculative trends are typically short-lived, reinforcing the notion that long-term stock performance is driven by underlying company profitability [22][24]. Long-term Investment Philosophy - The company advocates for a long-term investment approach, prioritizing companies with solid earnings over engaging in short-term speculative trading [28]. - A quote from Graham highlights the distinction between short-term market fluctuations and long-term value realization, emphasizing the importance of company fundamentals [30][31]. New Features and Tools - A new feature in the "Today Stars" app allows users to access core data and real-time valuations of mainstream ETFs, aiding in identifying undervalued investment opportunities [32][34].