Core Viewpoint - The investment approach of Southern Fund's Lu Yushan emphasizes a balanced and sustainable style, focusing on building a system that adapts to various scenarios to address future uncertainties, with a core emphasis on identifying trends, selecting companies, and diversifying risks [1] Group 1: Investment Strategy - Lu Yushan seeks to identify "main channels" in the market, focusing on sectors with long-term trends driven by economic structure changes, technological evolution, and social development, rather than short-term hotspots [2] - In the Q3 2025 report of the Southern Core Competitive Mixed Securities Investment Fund, Lu noted that the growth style had become extreme and adjusted the strategy to favor balanced allocation, focusing on undervalued cyclical industries for potential absolute returns [2] - In the Q4 2025 report, she continued this balanced approach, highlighting opportunities in AI computing power, commercial aerospace, energy storage, and sectors related to external demand, while adjusting the fund's allocations accordingly [2] Group 2: Company Selection - Lu Yushan employs frameworks to assess companies, placing importance on the actual impact of innovation, such as whether it improves user experience or optimizes costs, and emphasizes buying at reasonable prices [3] - She tends to focus on solid fundamental manufacturing companies that are not yet fully recognized by the market, rather than overvalued popular stocks [3] Group 3: Risk Management - The investment method includes a strong focus on risk management alongside the pursuit of returns, characterized by a "balanced growth" style [4] - Maintaining industry diversification is crucial, as high concentration in a single industry is avoided to reduce dependency on any one sector [4] - Lu Yushan dynamically assesses the cost-effectiveness of stocks and bonds, adjusting positions based on market conditions [5] - A key goal of her approach is to control drawdowns, aiming for smoother net value fluctuations during market adjustments [6] Group 4: Overall Investment Philosophy - Overall, Lu Yushan's investment method can be viewed as a framework for building long-term stability, relying on understanding trend directions, focusing on corporate value, and effective risk management to create a sustainable value growth strategy [7]

Core Viewpoint - Lu Yushan from Southern Fund is recognized for her ability to navigate market cycles with a "balanced growth" investment philosophy, focusing on selecting great companies at reasonable prices rather than relying on single-sector bets [1] Investment Philosophy - The core of Lu Yushan's investment framework is to identify great companies in the main industry channels, integrating macroeconomic insights with in-depth company analysis [1] - Her methodology combines top-down and bottom-up approaches, tracking macroeconomic trends while conducting rigorous financial analysis and field research to quantify a company's competitive advantages [1] - Lu Yushan has a unique understanding of "innovation," assessing its true value from practical angles of "experience improvement" and "cost optimization," aiming to buy at reasonable prices with a high margin of safety [1] Investment Style - Lu Yushan's "balanced growth" style emphasizes both growth potential and reasonable or even low valuation levels when selecting stocks, focusing on opportunities that are temporarily overlooked or in a turnaround phase [2] - The two foundational principles of her style are balance and diversification, aimed at reducing net asset value volatility and adapting to rapid market style rotations [2] - She places significant emphasis on maintaining stable net asset values, striving for long-term resilience rather than short-term explosive growth [2] Evidence of Philosophy - Lu Yushan's investment philosophy is reflected in her management of the Southern Core Competitive Mixed Fund, where she adjusted her strategy in response to market conditions, focusing on low-valuation cyclical industries to capture absolute return opportunities [3] - In her fourth-quarter report for 2025, she maintained her investment approach by not fixating on past hot sectors but instead adapting to changes in industry prosperity and optimizing her portfolio structure [3] - Throughout her investment career, Lu Yushan has consistently demonstrated a calm, long-term approach, using deep research to replace trend chasing and balanced allocation to mitigate single risks [3]

Group 1 - The A-share market in 2025 experienced a significant structural differentiation, leading to a robust upward trend, with expectations for a solid "spring rally" in 2026 [1][6] - The manager of Huashang Fund, Haiyang, employs a dual strategy of "balanced growth + quantitative empowerment" to navigate the spring rally effectively [1][6] - Haiyang remains optimistic about the macroeconomic state improving as counter-cyclical economic policies are gradually implemented, anticipating a recovery in quality small and mid-cap stocks as risk appetite increases [1][6] Group 2 - In 2025, the A-share market revealed clear structural opportunities, with major alpha concentrated in growth and cyclical sectors [4][10] - The first quarter saw a notable spring rally driven by thematic trends in the technology sector, with significant valuation increases in sub-sectors like robotics, low-altitude economy, and AI applications [4][10] - The investment strategy focused on high-quality industry leaders, favoring mid to large-cap stocks while reducing exposure to small-cap factors to mitigate volatility risks [4][10] Group 3 - Looking ahead to 2026, most broad market indices are expected to maintain reasonable valuation levels, with ongoing technological innovation and favorable liquidity conditions [5][11] - The market is anticipated to continue showcasing structural opportunities in both cyclical and technological sectors, with a positive outlook for small and mid-cap quality stocks as risk preferences recover [5][11] - Haiyang plans to maintain a diversified quantitative allocation strategy to ensure stable returns through product portfolio configuration [5][11]