Core Viewpoint - The current market environment, characterized by volatility and rapid shifts in investment hotspots, necessitates a focus on long-term stability rather than chasing fleeting trends [1] Group 1: Investment Philosophy - The essence of investing in public funds is to achieve asset preservation and appreciation in the equity market, with a focus on smooth and steady returns [2] - A good investment experience is defined by minimizing significant and prolonged losses while allowing investors to hold their positions without the stress of timing the market [2] Group 2: Strategic Approach - The investment strategy is based on macroeconomic analysis, identifying undervalued opportunities from cyclical turning points rather than engaging in short-term trading [3] - The manager emphasizes the importance of asset turnover and trading volume to assess market sentiment and identify potential investment opportunities [3] Group 3: Dynamic Adjustment - The investment approach involves flexible adjustments to the portfolio in response to market style changes, reducing exposure to overvalued assets while increasing weight in undervalued ones [4] - The manager's patience in waiting for the right market conditions, as seen in the strategic positioning in brokerage stocks, highlights the importance of maintaining a balanced portfolio [5] Group 4: Market Context - The recent fluctuations in the Shanghai Composite Index, which briefly surpassed 4000 points before retreating, illustrate the structural characteristics of the current market [6] - The focus on stability is crucial in a volatile market, with the aim of achieving lower overall drawdowns compared to the market average [6]

Core Viewpoint - The current market environment emphasizes the need for stability in investment strategies, particularly as the Shanghai Composite Index approaches the 4000-point mark and experiences volatility [1][9]. Investor Experience - The essence of purchasing mutual funds is to achieve asset preservation and appreciation in the equity market, with a focus on smooth and steady returns while avoiding significant losses [3][9]. - A good investment experience is defined by two standards: minimizing large and prolonged losses, and alleviating the stress of market timing for investors [3][9]. Investment Strategy - The investment philosophy is based on macroeconomic research, focusing on identifying undervalued opportunities from cyclical turning points rather than chasing short-term trends [5][9]. - The manager has increased allocations in public utilities and transportation sectors in anticipation of counter-cyclical policies, while also monitoring "white horse stocks" that are closely tied to China's economic performance and interest rates [5][9]. Dynamic Adjustment - The investment approach involves flexible adjustments to the portfolio in response to market style changes, reducing exposure to high-volatility assets while increasing weight in undervalued assets with reversal potential [7][9]. - The manager's patience in waiting for market opportunities, such as in the brokerage sector, reflects a strategy of maintaining a balanced portfolio to withstand short-term pressures [7][9]. Long-term Perspective - Emphasizing the importance of time in investment management, the strategy focuses on managing risk from a volatility perspective rather than fixating on individual stock performance [8][9]. - The overall goal is to stabilize the portfolio's foundation to navigate through market fluctuations, allowing for a more secure investment journey for clients [9].

Core Viewpoint - The concept of "stability" in investment is often misunderstood as conservatism, but it is actually about active management aimed at optimizing the holding experience and ensuring long-term investment success [1][2]. Group 1: Market Conditions - The Shanghai Composite Index successfully broke through the 4000-point mark on October 28, marking the first time since August 18, 2015, but experienced slight fluctuations on the same day [3]. - The current market is characterized as a "structural market," with only 10% to 20% of stocks doubling in value since September 24 of last year, indicating significant differentiation and a lack of widespread profit-making [4]. Group 2: Investment Strategy - The investment strategy focuses on controlling portfolio volatility to achieve stability during market fluctuations, with the current portfolio positioned at a neutral level, resulting in a significantly lower overall drawdown compared to the market average [5]. - The investment framework emphasizes macroeconomic research to identify turning points and opportunities, with recent allocations to utilities and transportation sectors based on predictions of counter-cyclical adjustments and policy support [5][6]. Group 3: Portfolio Management - The essence of left-side trading is to buy when assets are overlooked, requiring patience and a balanced portfolio to mitigate risks while waiting for market adjustments [7]. - Dynamic balance in portfolio management is crucial, with adjustments made based on market conditions and asset performance, ensuring that the portfolio remains aligned with the investor's objectives [8]. Group 4: Investor Experience - The ultimate goal of a stable investment strategy is to enhance the investor's experience by avoiding significant or prolonged losses and maintaining a smooth upward trajectory in returns [9]. - The philosophy emphasizes that a positive investment experience is achieved when the time spent in profitable conditions outweighs the time in losses, reflecting a long-term view of stability's value [9].

Core Viewpoint - The concept of "stability" is undervalued in volatile markets, as articulated by Zhang Yonghe of Guotai Fund, emphasizing that it is not conservative but rather an active management strategy aimed at optimizing the investment experience and ensuring long-term stability [1][2]. Group 1: Market Conditions - The Shanghai Composite Index successfully broke the 4000-point barrier on October 28, marking the first time since August 18, 2015, but experienced slight fluctuations on the same day, indicating market volatility [4]. - The current market is characterized as a "structural market" rather than a typical bull market, with only 10% to 20% of stocks doubling in value since September 24, 2022, primarily in small-cap and AI-related sectors [5][6]. Group 2: Investment Strategy - The investment strategy focuses on controlling portfolio volatility to achieve stability during market fluctuations, with a neutral overall position that has resulted in significantly lower drawdowns compared to the market average [6][7]. - Zhang Yonghe emphasizes macroeconomic research as a core element of investment decisions, aiming to identify turning points and opportunities based on economic trends, corporate earnings, and liquidity conditions [7][8]. Group 3: Portfolio Management - The investment approach incorporates a strong contrarian mindset, suggesting that opportunities often arise when assets are overlooked by the market [9]. - The strategy involves dynamic portfolio management, adjusting asset allocations based on market conditions and the relative value of assets, ensuring a balance between different investment styles [10][13]. Group 4: Enhancing Investor Experience - The ultimate goal of a stable investment strategy is to enhance the investor's experience by minimizing significant or prolonged losses and maintaining a smooth upward trajectory in returns [15]. - Zhang Yonghe's philosophy aligns with the idea that a positive investment experience is paramount, allowing investors to feel secure in their equity market investments without the stress of timing the market [15].

Core Insights - The concept of "stability" in investment is emphasized as an undervalued strength, aiming to optimize the holding experience and support long-term investment success [1][2] - The investment strategy focuses on macroeconomic and market judgments to enhance the investment experience for holders, avoiding significant and prolonged losses [2][4] Market Context - The Shanghai Composite Index successfully broke the 4000-point mark on October 28, marking its first time above this level since August 18, 2015, although it experienced slight fluctuations on the same day [3] - The current market is characterized as a "structural market," with only 10% to 20% of stocks doubling in value since September 24, 2022, indicating significant market differentiation and a lack of widespread profit [4] Investment Strategy - The investment approach is centered on controlling portfolio volatility to achieve stability during market fluctuations, with a neutral overall position that has resulted in lower drawdowns compared to the market average [5] - The investment framework involves macroeconomic research to identify turning points and opportunities, with recent allocations to utilities and transportation sectors based on predictions of counter-cyclical adjustments [5][6] Portfolio Management - The strategy includes left-side trading, which requires patience and is supported by a diversified portfolio that allows for waiting on underperforming assets [7] - Dynamic balance in portfolio management is crucial, adjusting asset weights based on market conditions and the actual value changes of assets [8] Investor Experience - The ultimate goal of the investment strategy is to enhance the investor's experience by minimizing significant losses and ensuring a smooth upward trajectory of returns [9] - The philosophy emphasizes that a positive investment experience is achieved when the time spent in profitable conditions outweighs the time in losses, reflecting a long-term view of stability [9]

Core Viewpoint - The concept of "stability" in investment is undervalued and should be seen as proactive management aimed at optimizing the holding experience and ensuring long-term investment success [2][3] Market Analysis - The recent market is characterized as a "structural market" rather than a typical bull market, with only 10% to 20% of stocks doubling in value since September 24, 2022, primarily in small-cap and AI-related sectors [6][7] - Despite some active trading phases, the median gain across the A-share market is significantly lower than the index gains, indicating a clear divergence in market performance [7] Investment Strategy - The focus on "stability" is crucial for managing portfolio volatility, allowing for sustained performance amid market fluctuations. The overall portfolio positioning has been neutral, with a notable reduction in drawdown compared to market averages [8] - A robust investment framework has been developed, emphasizing macroeconomic research to identify turning points and opportunities for left-side positioning [9][10] Portfolio Management - Left-side trading requires patience, as evidenced by the successful positioning in brokerage stocks that began in the second half of 2023, with benefits realized in 2024 [12] - Dynamic portfolio management is essential, adapting to market style shifts and adjusting asset allocations based on actual value changes [13][14] Investor Experience - Enhancing the investor experience is a primary goal, focusing on avoiding significant or prolonged losses while ensuring a smooth upward trajectory in returns [15][16] - The ultimate aim is to provide investors with peace of mind in equity investments, minimizing the need for complex timing decisions [16]

Core Insights - Technology stocks have dominated market trends in recent years, yet some fund managers have achieved impressive performance without relying on them since September 24, 2022 [1] - Zhang Ronghe, a fund manager at Guotai Fund, has consistently outperformed mainstream indices and benchmarks, demonstrating a balanced investment approach [1][5] - As of September 14, 2023, Zhang's managed fund, Guotai Blue Chip Select A, achieved a return of 52.81% over the past year, while Guotai Central Enterprise Reform yielded a return of 37.12% during the bear market of 2023 [1] Fund Management Overview - Zhang Ronghe has 13 years of industry experience, with 4 years in investment management, specializing in macro strategy research [2][3] - He currently manages three funds: Guotai Central Enterprise Reform, Guotai Blue Chip Select, and Guotai Zhaoxiang Six-Month Holding Period Fund [4][6] - Since Zhang took over, the funds have shown significantly better metrics in terms of maximum drawdown and volatility compared to their peers [5] Fund Characteristics - Guotai Central Enterprise Reform focuses on investments benefiting from central enterprise reforms, with a performance benchmark of 80% of the CSI Central Enterprises Composite Index and 20% of the CSI Comprehensive Bond Index [7] - Guotai Blue Chip Select has a broader stock selection, including some Hong Kong stocks, and both funds lean towards large-cap value styles while still achieving substantial returns in a tech-dominated market [7][11] - The Guotai Zhaoxiang fund is a "fixed income plus" product, with an equity allocation around 15%, achieving a return of 11.55% since Zhang's management began [7] Investment Strategy and Market Outlook - Zhang's investment strategy emphasizes stability and a focus on sectors benefiting from policy support, such as public utilities and transportation [9][13] - The second quarter report indicates a low turnover rate and minimal structural changes in the portfolio, reflecting a cautious approach to market conditions [12] - Zhang predicts that 2026 will outperform 2025, with a focus on cyclical assets and sectors that are likely to benefit from domestic policy shifts [18][19] - He expresses confidence in the new fund, Guotai Qiming, which will invest in both A-shares and Hong Kong stocks, with a personal investment of 2 million yuan [15]