Core Viewpoint - Public funds that entered the market during the peak of the pharmaceutical sector are facing a dilemma where even profitable performance cannot restore their reputation [1][2]. Group 1: Performance Challenges - Pharmaceutical theme funds established at the market's peak in 2021 are struggling to recover from significant losses, with some funds showing cumulative losses of up to 22% despite a rebound in 2025 [3][4]. - A specific fund launched in August 2021 experienced annual losses of 5%, 21%, 7%, and 14% in the following years, and its net asset value remains below 0.8 yuan [3][4]. - Another fund, established in April 2021, faced even worse outcomes, with its net value failing to exceed 0.5 yuan after four years of declines, despite a 20% rebound in 2025 [3][4]. Group 2: Timing and Market Sentiment - The timing of fund establishment significantly impacts long-term performance, with funds launched during euphoric market conditions more likely to suffer prolonged losses [4]. - A prominent fund manager's two funds launched in 2021 had drastically different outcomes based on their launch dates, highlighting the importance of market sentiment at the time of entry [4]. Group 3: Contractual Limitations - The limited duration of fund contracts poses a challenge for waiting for value discovery, as funds may be forced to exit before realizing potential gains [5]. - A fund that saw its net value drop to 0.52 yuan faced termination due to continuous investor redemptions, missing out on subsequent market recovery [5]. Group 4: Impact on Fund Managers - High entry costs and prolonged loss periods can lead to fund liquidation and negatively affect fund managers' careers, with some leaving the industry after their funds are closed [6]. - The survival of fund products is closely tied to timing, which also influences the career trajectories of fund managers [6]. Group 5: Focus on Pricing and Risk Management - Many fund managers emphasize the importance of reasonable pricing over merely selecting good companies, as high valuations can lead to significant performance risks [7][8]. - The phenomenon of losing money on popular stocks while gaining on less favored ones underscores the sensitivity to entry prices [7][8].

Core Viewpoint - The article discusses the rarity of fund managers maintaining their unique investment styles in the current public fund industry, amidst a trend of thematic investment strategies that often lead to homogenized stock holdings [1][2]. Group 1: Investment Strategies - Many fund managers are striving to preserve and enhance their personalized investment styles, resulting in distinctive fund products that stand out in terms of quality and performance [2][4]. - As of July 16, 2025, data shows that the highest net value of fund products has doubled, with many funds achieving over 30% returns primarily through concentrated holdings in one or two popular sectors, leading to a lack of differentiation among funds [3][4]. - Notable funds such as Guangfa Growth Navigator and Nuon Fund's Multi-Strategy Fund have achieved impressive returns of approximately 75% and 45% respectively, by avoiding a single-sector focus and emphasizing diversified stock selection strategies [4]. Group 2: Performance and Risk Management - The diversified selection strategy requires fund managers to invest more research effort across various sectors, including less popular industries, to achieve good returns [5][6]. - For instance, the Nuon Multi-Strategy Fund, managed by Kong Xianzheng, achieved a 45% return without heavy reliance on popular sectors, instead focusing on a balanced approach across agriculture, pharmaceuticals, chemicals, and machinery [5][6]. - Fund managers with extensive experience, such as Chen Peng and Wu Yuanyi, emphasize the importance of diversification to mitigate risks associated with concentrated investments, achieving returns of 49% and 75% respectively through balanced portfolios [6][7]. Group 3: Lessons from Market Cycles - Experienced fund managers recognize that while concentrated investments can yield quick returns, they also pose significant risks, as evidenced by past experiences of substantial losses during market downturns [7][8]. - The shift towards a diversified investment approach is seen as a response to the volatility associated with single-sector investments, with a focus on controlling drawdowns and ensuring long-term stable returns [7][8].

Core Viewpoint - In the current public fund industry, fund managers who can maintain their product characteristics while achieving good performance are considered "rare" [1] Group 1: Performance and Strategy - The best-performing funds in the market have achieved returns of over 100% this year, with many high-yield products relying on concentrated positions in one or two popular sectors [1] - Some fund managers emphasize a diversified investment strategy that aligns with their investment style, achieving notable performance without relying solely on popular sectors [2][3] Group 2: Individual Fund Performance - Notable funds with unique investment characteristics include: - GF Growth Navigator Fund with a return of approximately 75% - NuAn Multi-Strategy Fund with a return of about 45% - Southern Hong Kong Innovation Vision Fund with a return of 36% - Shenwan Hongxin LeRong Fund and Anxin Insight Growth Fund both around 49% [2] - These funds have not adopted a single-sector strategy, focusing instead on diversified stock selection [2] Group 3: Diversification and Risk Management - Fund managers employing a balanced strategy often have over 10 years of investment experience and have navigated multiple market cycles [2] - For example, the NuAn Multi-Strategy Fund has achieved a 45% return by diversifying across various sectors, including agriculture, pharmaceuticals, and chemicals, with no substantial heavy positions [3] - The GF Growth Navigator Fund's impressive 75% return is also based on a diversified portfolio across sectors like environmental protection, military, and automotive electronics [3] Group 4: Importance of Avoiding Concentration - Experienced fund managers emphasize the risks of concentrating on a single sector, which can lead to significant losses [5][6] - A shift towards a diversified investment approach has been noted among managers who previously relied on sector concentration, highlighting the importance of adapting to changing market conditions [5][6]

Core Viewpoint - The new performance evaluation system linking fund manager compensation to three-year performance benchmarks is expected to lead to changes in stock selection and investment aesthetics among public fund managers, emphasizing high-quality stock selection based on growth, cash flow, valuation, and industry advantages [1][2]. Group 1: Performance Evaluation Changes - The China Securities Regulatory Commission has introduced a new action plan to enhance the quality of public funds, which includes reforming the performance evaluation mechanism for fund companies, emphasizing long-term performance over short-term metrics [2]. - Fund managers whose products underperform the benchmark by more than 10 percentage points over three years will see a significant reduction in their performance-based compensation [1][2]. Group 2: Investment Strategies and Outcomes - Many top-performing fund managers have adopted a concentrated investment strategy, often focusing on one or two sectors, leading to the phenomenon of "three years of no gains, followed by three years of gains" [2][3]. - Examples include a fund manager whose product suffered losses in 2022, 2023, and 2024 but achieved nearly 40% returns in the first five months of 2025 due to a concentrated bet on the humanoid robot sector, resulting in a turnaround in three-year performance [3][4]. Group 3: Risks of Diversification - Fund managers employing a diversified strategy may not necessarily outperform benchmarks, as the market has shown a trend of concentrated opportunities, with only a few sectors thriving while most lag behind [5][6]. - A fund manager using a diversified approach across multiple sectors still faced significant losses over three years, indicating that diversification does not guarantee performance stability in a market characterized by sector-specific booms [6][7]. Group 4: Breaking Investment Bias - To achieve long-term performance, fund managers must break away from traditional investment biases and embrace emerging opportunities, balancing investments across both traditional and new sectors [8][11]. - A successful fund manager highlighted the importance of a diversified approach that is not limited by past industry experience, allowing for a broader perspective on investment opportunities [9][10].

Core Viewpoint - The new performance evaluation system linking fund manager compensation to three-year performance benchmarks is expected to lead to changes in stock selection and investment aesthetics among public fund managers, emphasizing high-quality stock selection based on growth, cash flow, valuation, and industry advantages [1][2] Group 1: Performance Evaluation Changes - The China Securities Regulatory Commission has introduced a new action plan to enhance the performance evaluation system for public funds, focusing on long-term performance and reducing the weight of operational metrics like scale and profit [2] - Fund managers whose products underperform the benchmark by more than 10 percentage points over three years will see a significant decrease in their performance-based compensation [2][3] Group 2: Investment Strategies and Outcomes - Some fund managers have adopted a "betting on a single track" strategy, leading to significant performance fluctuations, exemplified by a fund manager who faced three consecutive years of losses but achieved a nearly 40% return in the first five months of 2025 due to a successful bet on the humanoid robot sector [3][4] - Another fund manager focused solely on the pharmaceutical sector experienced substantial losses over three years but turned around to achieve a 50% return in 2025 as the sector gained momentum [4] Group 3: Challenges of Diversified Strategies - Fund managers employing a diversified strategy have not necessarily outperformed benchmarks, as the market has shown a trend of concentration in certain sectors, leading to more opportunities for those who focus on specific high-performing sectors [5][6] - A fund manager using a diversified approach saw significant losses over three years, with a return of less than 6% in 2025, resulting in a total three-year performance that lagged behind the benchmark [6][7] Group 4: Breaking Investment Biases - To achieve long-term performance, fund managers must balance diversified strategies with an openness to emerging investment opportunities, moving beyond biases formed during their research careers [8][10] - A successful fund manager highlighted the importance of a multi-faceted investment approach, focusing on growth and fundamentals rather than being constrained by past industry experiences, leading to a significant outperformance of benchmarks [9][10]