Core Viewpoint - The article highlights the exceptional performance of Cao Jin, a fund manager specializing in technology growth, who has achieved significant alpha in the A-share market, challenging the common perception of technology stocks as high-beta and volatile investments [4]. Group 1: Performance Metrics - Cao Jin manages the Fu Guo Small and Medium Cap Select Fund, which has a latest net value of 4.9250 and a ten-year return rate of 435.9%, significantly outperforming the benchmark return of 34.6% during the same period [5][12]. - Over the past five complete years (2020-2024), the fund's net value growth rates were 83.69%, 8.91%, -21.92%, -5.06%, and 10.11%, compared to the benchmark returns of 23.06%, 9.53%, -17%, -5.28%, and 8.62% respectively [5][12]. Group 2: Risk Management and Investment Strategy - Cao Jin has demonstrated effective risk management, particularly during market downturns, such as the tariff storm on April 7, where his fund recovered faster than major indices like the CSI 300 and ChiNext [6]. - His investment framework focuses on technology stocks while avoiding extreme concentration in specific sectors. He has consistently identified emerging investment opportunities across various technology trends over the past decade [6][7]. Group 3: Investment Philosophy - Cao Jin emphasizes the importance of independent thinking and continuous learning in investment, maintaining a balance between long-term vision and short-term performance [8][21]. - He believes that understanding the essence of a business is crucial, as many industries share common operational principles, which can be leveraged for investment decisions [41][42]. Group 4: Market Insights - The article discusses the significant growth premium in the A-share market, with data showing that from 2003 to 2023, the CSI 300 index yielded 219.2%, while the total A-share index yielded 387.0%, indicating a notable growth premium [29]. - Cao Jin argues that China's competitive advantage lies in advanced manufacturing and technology, rather than consumer spending, which is often misperceived [30][31]. Group 5: Lessons and Quotes - Several key investment insights from Cao Jin are shared, including the idea that short-term performance is as important as long-term results, and that investment should be approached as a personal journey of improvement rather than competition with others [10][18]. - He stresses the importance of avoiding forced trades and making decisions based on thorough research rather than market pressure [21][49].

Group 1 - Small-cap stocks have shown significant performance since the second quarter, with indices like the CSI 1000 and CSI 2000 outperforming larger indices such as the CSI 300 [1][2] - From June 20 to August 7, the CSI 1000 index increased by 14.38%, while the CSI 2000 index rose by 15.70%, indicating a strong rebound in small-cap stocks [1] - Equity funds have increased their allocation to small-cap stocks by 1.5% by the end of the second quarter, with small-cap funds seeing a net value increase of 4.19% [1] Group 2 - Small-cap equity assets remain attractive due to declining risk-free rates and a favorable valuation premium compared to the CSI 300 index [2] - There is a significant cognitive bias between the growth potential of many small-cap companies and their current market pricing, suggesting room for value appreciation [2] - The current market liquidity environment supports valuation recovery for small-cap equities, with expectations for further upward adjustments as risk-free rates decline [2] Group 3 - The "specialized, refined, distinctive, and innovative" direction is highlighted as a key area for investment, focusing on sectors like automotive, home appliances, mining, innovative pharmaceuticals, electronics, and AI [3][4] - The emergence of a "engineer dividend" is expected to enhance the global competitiveness of Chinese companies, with a focus on those that can benefit from this trend [3] - The fund managers emphasize the importance of identifying companies with long-term competitive advantages in high-end manufacturing and core components, aligning with China's economic transformation [4]