Core Viewpoint - The article highlights a trend among certain "mini funds" adopting a defensive stance by significantly reducing their stock holdings to near cash levels, missing out on the recent market rally despite an overall positive market trend for actively managed equity funds [1][4]. Fund Performance and Strategy - Some flexible allocation funds, particularly smaller ones, have drastically decreased their stock positions in Q3, with cash assets, such as bank deposits, dominating their portfolios. For instance, the Fuanda New Power fund saw its stock allocation plummet from 87.5% at the end of Q2 to just 1.35% by the end of Q3, with over 98% of its assets held in cash [2]. - The Zhongyin Zhenli fund reported a stock allocation of only 12% in Q3, with 85% of its assets in bank deposits, indicating a conservative investment approach compared to peers [2]. - The Green Fund's Green Bory also exhibited a similar trend, with a stock allocation of just 11.23% and over 60% in cash, reflecting a cautious strategy amid market fluctuations [3]. - The Galaxy Junshang fund had a mere 0.94% in stocks by the end of Q3, primarily holding cash and bonds, contrasting sharply with its previous "heavy stock, light bond" strategy [3]. Market Context and Fund Manager Sentiment - Despite the overall market strength, with indices reaching around 4000 points and a continued upward trend in technology stocks, some fund managers opted for significant cash positions, possibly due to profit-taking from previously popular sectors or a cautious outlook on future market movements [4].