Core Viewpoint - The article emphasizes the importance of utilizing convertible bonds (CBs) as a strategic investment tool, focusing on risk-reward analysis based on the characteristics of the underlying stocks. The investment philosophy is centered around maintaining a balanced risk-return profile while capitalizing on market inefficiencies and price discrepancies in CBs [2][3][20]. Group 1: Investment Philosophy - The investment approach prioritizes a risk-reward ratio that does not overly depend on future predictions, acknowledging the inherent uncertainties in the market [2][11]. - The strategy involves adjusting the allocation between stocks and CBs based on their relative valuations, aiming to enhance the overall risk-return profile of the portfolio [3][19]. - The philosophy of "not losing is winning" is highlighted, indicating a focus on preserving capital while seeking opportunities for growth [5][12]. Group 2: Timing and Selection - Timing decisions are made based on the relative valuation of CBs compared to stocks, with a preference for increasing CB exposure when they are undervalued [17][18]. - The selection of individual CBs is based on a detailed analysis of four factors: CB price, premium rate, and the characteristics of the underlying stock and industry [20][21]. - The article notes that high-potential opportunities typically arise during market downturns, allowing for strategic left-side investments [3][24]. Group 3: Performance Metrics - The performance of the managed fund, 中银产业债A, has shown a significant outperformance with a 9.31% return over the past year compared to a benchmark of 2.36%, indicating effective management and strategy execution [2]. - The article provides specific performance data for various funds managed, showcasing consistent rankings in the top quartile among peers, particularly during different market conditions [14][48]. Group 4: Market Conditions and Adjustments - The investment strategy adapts to changing market conditions, with a focus on maintaining a balanced exposure to both stocks and CBs based on their respective valuations [30][31]. - The article discusses the importance of liquidity management and the avoidance of excessive exposure to liquidity risks, especially during market downturns [42]. Group 5: Long-term Perspective - The long-term investment philosophy is rooted in the understanding that the valuation at the time of purchase significantly impacts future returns, advocating for a focus on undervalued assets [45][43]. - The article concludes with a reminder of the unpredictable nature of markets, emphasizing the need for a disciplined approach to investment management that prioritizes risk control and capital preservation [46][47].