Core Viewpoint - The recent quarterly report of the Tongtai Industrial Upgrade fund reveals a significant recovery in fund size, but the reasons for net value growth remain ambiguous, raising concerns about compliance and risk management within the small fund company [1][3]. Fund Performance and Structure - The Tongtai Industrial Upgrade fund, established in March 2022, experienced a drastic decline in net value, dropping to around 0.6 yuan by Q3 2024. However, due to large redemptions and subsequent fees, the fund's net value saw an unusual single-day increase of 68.73% [2][3]. - By the end of Q3, the fund's net asset value reached 2.1425 yuan, marking a 30.65% increase, outperforming its benchmark return of 12.53%. The fund also saw a net subscription of 0.34 million shares, doubling its size to 4.39 million yuan [2][3]. Investment Strategy and Stock Selection - The fund has shifted its investment focus towards the robotics sector, particularly humanoid robots, which saw a nearly 30% increase in the index during Q3. The fund manager expressed intentions to continue investing in high-growth opportunities within this niche [5][6]. - The fund's top holding, Dongjie Intelligent, was added to the portfolio during Q3, accounting for 8.07% of the fund's net value. Despite a significant stock price increase of over 120% in recent months, the company faced regulatory scrutiny, receiving two warnings for financial reporting inaccuracies [6][7]. Broader Fund Management Trends - Other funds under Tongtai have also shifted towards niche sectors, but their performance has not improved significantly. For instance, the Tongtai Huize fund, which pivoted to the pet industry, saw its size shrink to 0.17 million yuan, with a year-to-date return of only 5.63% [8][9]. - The overall management scale of Tongtai funds is relatively small, with a total of 7.7 billion yuan, ranking 143rd in the industry. This raises questions about the strategic depth of their high-concentration and high-turnover investment approach [9][10].

Core Viewpoint - The North Exchange (北交所) themed funds have shown strong performance in 2023, with all funds achieving over 18% positive returns, and 25 funds exceeding 30% growth, driven by supportive policies, diversified institutional investments, improved market liquidity, and enhanced fundamentals [2][4][5]. Group 1: Performance of North Exchange Themed Funds - North Exchange themed funds have become one of the strongest performing themes in the market, alongside robotics and Hong Kong technology funds, with all funds achieving positive returns this year [4]. - There are over 30 North Exchange themed funds, with 22 being index or enhanced index funds and the remaining being actively managed funds [4]. - The actively managed funds include two open subscription funds, focusing on growth investments and identifying "specialized, refined, unique, and innovative" enterprises [4][6]. Group 2: Factors Driving Market Strength - The rebound in the North Exchange market is attributed to multiple favorable factors, including continuous policy support, diversified institutional investments, improved liquidity, and better fundamentals [6][7]. - Policies such as the "Deep Reform 19 Articles" and "Merger and Acquisition Six Articles" have optimized listing and liquidity mechanisms, enhancing market attractiveness [6][7]. - Over 80% of North Exchange companies reported profit growth, driven by technological innovation and demand recovery, leading to improved gross margins and revenue [7][8]. Group 3: Future Market Outlook - The North Exchange's strong performance is a result of the synergy between policies, capital, and asset quality, with a focus on identifying reasonably valued targets for short-term investments [9]. - The market is expected to see more "small giant" enterprises listed, increasing the scarcity of investment targets and further driving the market [7][9]. - Institutional participation in the North Exchange is gradually increasing, with public funds steadily investing and private equity becoming a major player [8][10].