Core Viewpoint - The demand for convertible bonds has surged due to declining bond yields, attracting low-risk investors seeking higher returns. The key to leveraging convertible bonds lies in managing drawdowns while striving for enhanced returns [1]. Group 1: Investment Philosophy - The investment philosophy emphasizes that sustainable performance should not overly rely on future predictions, as the world is highly uncertain. A portfolio with a favorable risk-reward ratio is essential [1][10]. - The focus is on maintaining a balance between risk and return, ensuring that even if predictions are incorrect, the portfolio does not suffer significant losses [10][12]. Group 2: Investment Strategy - The strategy involves prioritizing odds in timing and selection of convertible bonds. When convertible bonds are significantly undervalued, the allocation shifts towards them, and vice versa when they are overvalued [2][14]. - The selection process for convertible bonds is based on a risk-reward analysis of the underlying stocks, considering factors like bond price, premium rate, and the characteristics of the corresponding stocks [2][20]. Group 3: Performance Metrics - The performance of the managed fund, Zhongyin Industrial Bond A, achieved a return of 9.31% over the past year, outperforming its benchmark by 6.95% [1]. - The fund manager has successfully navigated various market conditions by switching between stocks and convertible bonds, maintaining a strong performance record [3][13]. Group 4: Market Conditions and Timing - High-odds opportunities typically arise during market downturns or periods of panic, which aligns with the manager's left-side investment approach [2][24]. - The manager's strategy includes buying convertible bonds during market lows, capitalizing on their undervaluation and potential for recovery [22][24]. Group 5: Risk Management - The investment approach aims to find asymmetrical risk-reward opportunities, ensuring that the downside risk is minimized while allowing for potential upside [12][33]. - The focus on maintaining a stable risk-return profile helps in achieving consistent performance, even in volatile market conditions [11][30].