Core Insights - The article highlights the investment strategies and performance of Luan Chao, the head of equity investment at Huazhong Fund, who has a decade of experience as a fund manager and is launching a new product called Huazhong Advantage Navigation [1][2]. Group 1: Investment Performance - Luan Chao's flagship product, Huazhong Advantage Leader, has seen a net value increase of 56.11% over the past year, outperforming the benchmark by 36.03% [1]. - The product's top ten holdings were reduced from 69% to approximately 35%, balancing risk and maintaining sharpness in investment [2]. Group 2: Investment Philosophy - Luan Chao advocates a three-pronged investment philosophy of "timing, trend, and stock selection" [3]. - He emphasizes risk control by limiting exposure to any single industry to 30% and maintaining a balanced allocation across sectors [3][4]. Group 3: Historical Investment Decisions - In 2017, Luan Chao focused on cyclical industries like chemicals and real estate, while in 2019, he increased allocations to banks and consumer electronics as the economy recovered [4][5]. - In 2023, he began reducing positions in renewable energy while increasing exposure to AI [6]. Group 4: Investment Framework - Luan Chao has developed an investment framework that combines macroeconomic analysis, industry comparison, and company growth potential, focusing on EPS as a core metric [8]. - His investment style is characterized by a "pyramid" approach, starting with small positions and increasing as market conditions evolve [8]. Group 5: Future Outlook - Luan Chao sees growth as a primary focus, particularly in sectors driven by AI, autonomous control, and consumer demand reshaping [11]. - The new fund, Huazhong Advantage Navigation, will adopt a "growth + new dividend" strategy, targeting high-quality assets in AI and Hong Kong stocks [12]. Group 6: Team and Resources - Huazhong Fund boasts a robust investment research team, enhancing Luan Chao's market sensitivity and strategic depth [13][14]. - The firm has over 200 investment management professionals, making it one of the most experienced teams in the industry [15].

Core Viewpoint - The Huazhong Advantage Leading Mixed Fund, managed by experienced fund manager Luan Chao, aims to achieve long-term stable growth by dynamically adjusting industry allocations based on economic cycles and industry trends, focusing on sustainable returns for investors [1][2]. Investment Strategy - Luan Chao emphasizes a fundamental approach, avoiding speculation on market trends, and focuses on earning profits through understanding industry cycles and selecting individual stocks [2]. - The investment strategy involves determining asset allocation first, followed by selecting industries and specific sectors, while considering individual stock growth rates and risk-reward ratios [2][3]. Fund Performance - The Huazhong Advantage Leading Mixed Fund, under Luan Chao's management since July 1, 2024, has shown a 19.87% increase in net value over the past year, outperforming its benchmark of 17.83% [2]. - Historical performance of the Huazhong Advantage Leading Mixed Fund shows a net value growth rate of -26.50% from 2022 to 2024, with a subsequent recovery of 8.91% in the first half of 2025 [4]. Market Outlook - Luan Chao believes that the focus on short-term index fluctuations is diminishing, and there is a need to identify promising niche areas driven by new demands, with growth remaining the main theme [3]. - Key growth areas include AI-driven technological innovation, self-sufficiency in safety development, and demand reshaping due to consumption upgrades, alongside new dividends driven by declining interest rates [3].