Core Viewpoint - The article highlights the exceptional performance of Jiang Qi, a fund manager at Dongfanghong Asset Management, particularly in the pharmaceutical sector, showcasing her ability to generate significant excess returns compared to industry benchmarks [2][4]. Group 1: Performance Metrics - Jiang Qi's fund, Dongfanghong Medical Upgrade A, achieved a cumulative return of 71.72% from March 29, 2022, to August 22, 2025, significantly outperforming the Hong Kong-Shenzhen Innovation Drug Total Return Index, which only returned 2.56% during the same period, resulting in an excess return of over 69% [2]. - In 2023, Jiang Qi's fund realized a year-to-date positive return of 82.35% amid a structural market environment, demonstrating her ability to navigate both bull and bear markets effectively [4]. Group 2: Investment Strategy - Jiang Qi emphasizes a left-side layout for innovative drugs, having recognized early on the strong technological attributes of the pharmaceutical industry and the potential for innovation to create significant alpha [6][7]. - Her investment strategy involves a gradual increase in positions in innovative drug stocks as market trends become clearer, with the proportion of innovative drug stocks in her top ten holdings increasing from 2 to 6 between Q4 2023 and Q1 2025 [8]. - Jiang Qi's portfolio construction reflects a commitment to diversity, incorporating both high-growth biotech companies and traditional pharmaceutical firms undergoing transformation, thus avoiding a singular focus on any one sector [10]. Group 3: Research and Market Insight - Jiang Qi's approach includes conducting extensive research on companies that may appear undervalued or overlooked during market downturns, allowing her to identify opportunities ahead of broader market recognition [14][15]. - She believes that the innovative drug sector is entering a rapid growth phase, with many Chinese products expected to gain FDA approval in the coming years, marking a significant shift in the industry [18][19]. Group 4: Fundholder Engagement - Jiang Qi's funds are notably held by many employees within her company, indicating strong internal confidence in her management and investment strategies [21]. - She actively engages with her fundholders, providing guidance on long-term investment strategies and emphasizing the importance of patience in navigating the volatility of the innovative drug sector [35].

Core Insights - The rise of "initiated funds" has led to a significant number of funds facing liquidation due to not meeting the 200 million yuan threshold after three years [1][2] - Despite the high rate of liquidation, initiated funds remain a key strategy for fund companies, raising questions about their sustainability and operational costs [4][5] Group 1: Fund Liquidation Trends - As of July 15, 2023, 43 initiated funds have been liquidated this year due to failing to reach the required 200 million yuan, marking a historical high [1][2] - The average decline in value for these funds over three years is 18.65%, with nearly half experiencing a drop of over 20% [3][4] - Specific sectors like renewable energy and healthcare have seen significant performance issues, with some funds reporting cumulative returns as low as -53.43% [2][3] Group 2: Fund Company Strategies - Fund companies continue to launch initiated funds despite the risks, with over 404 such funds issued in 2023 alone [4][5] - The relatively relaxed establishment conditions for initiated funds allow companies to quickly enter niche markets and develop new fund managers [6][7] - Initiated funds serve as a "incubation" platform for new strategies and managers, providing opportunities in less recognized sectors [6][7] Group 3: Future Outlook - As of mid-July 2023, 183 initiated funds are approaching their three-year mark, with 98 of them still below the 200 million yuan threshold, indicating potential future liquidations [7] - Some initiated funds have successfully surpassed the threshold, such as the Yongying Advanced Manufacturing Fund, which has achieved a cumulative return of 82.35% [7]

Core Insights - The total scale of funds managed by securities firms and their asset management subsidiaries reached approximately 1.18 trillion yuan as of the end of Q1 2025, representing a year-on-year growth of about 13.2% [2][10] - The average return rate for over 600 funds managed by these firms in Q1 2025 was 1.35%, with notable performers including Dongfanghong Medical Upgrade A, Guotai Junan CSI Hong Kong Technology Index A, and招商资管北证50成份指数A [7][9] - Seven funds reported floating profits exceeding 100 million yuan in Q1 2025, with CITIC Securities Excellent Growth Two-Year Holding A and Dongfanghong Medical Upgrade A each exceeding 200 million yuan in profit [10][12] Fund Performance - In Q1 2025, eight new funds were established, totaling approximately 5.505 billion yuan in scale [2] - The QDII equity funds performed exceptionally well, achieving an average return rate of 18.72%, while QDII mixed and balanced mixed funds followed closely [7] - Twelve funds achieved returns exceeding 10% in Q1 2025, with three funds surpassing 20% [8][9] Fund Flows - Huatai Zijin Monetary Growth Fund saw a net subscription of 5.86 billion units in Q1 2025, while several other funds also experienced significant net subscriptions [6] - Conversely, 21 funds, including Caitong Asset Management Xin Guanjia and Dongfanghong Monetary Fund, faced net redemptions exceeding 1 billion units [6] Notable Funds - Dongfanghong Medical Upgrade A, an ordinary equity fund, reported a net value growth of 22.83%, outperforming its benchmark by 19.49 percentage points [9] - Huatai Zijin Monetary Growth C was the best-performing fund among those with over 100 million yuan in scale, achieving a return of 0.4% in Q1 2025 [9] - Zhongyin Securities Huijia Regular Open Fund experienced a net value decline of 0.45%, resulting in a floating loss exceeding 197 million yuan [12]