Core Insights - Public funds have shown an overall trend of increasing positions in equity assets during the third quarter, particularly in the TMT and power equipment sectors, amidst a rising technology stock bull market [1][3] - There is a notable divergence in the strategies of active equity funds, with some aggressively increasing their positions to capitalize on the bull market, while others have opted to reduce their holdings after achieving certain gains [1][3] Fund Positioning - As of the end of the third quarter, the average stock position of all public funds was 83.28%, an increase of 2.13 percentage points from the end of the second quarter. Mixed open-end funds had an average position of 82.15%, up 1.24 percentage points, while stock open-end funds averaged 90.14%, up 2.26 percentage points [3] - The concentration of holdings among public funds has increased, with stock open-end funds and mixed open-end funds seeing concentration levels rise by 0.94 percentage points and 2.1 percentage points to 56.81% and 57.72%, respectively [3] - By the end of the third quarter, 27 fund companies had products with an average stock position exceeding 90%, with Allianz Fund, Zhuque Fund, and Fidelity Fund having stock positions over 94% [3] Investment Style and Sector Allocation - According to a report by CICC, the market capitalization and growth style preferences of active equity funds have risen in tandem, while value style has seen a significant decline. The concentration of holdings has increased, indicating a more unified market perspective [4] - The TMT sector received an overall increase in allocation during the third quarter, with power equipment, new energy, and non-ferrous metals also seeing significant increases, while reductions were mainly in consumer, financial real estate, and manufacturing sectors [4] Notable Fund Performance - Several funds have significantly increased their positions, with some exceeding 99% stock allocation, including Huaxia Panyi One-Year Mixed Fund and CITIC Construction Investment North Exchange Selected Two-Year Mixed Fund [6] - Funds like Wanji New Opportunities Value-Driven Fund adjusted their holdings from consumer and financial stocks to defensive dividend stocks and domestic technology manufacturing companies, resulting in a stock position increase to 93% by the end of the third quarter [7] - Other funds, such as GF Industry Selection and Jin Xin Quality Growth, also made bold increases in their positions, achieving over 20% gains during the third quarter [8] Cautionary Strategies - Some active equity products have chosen to lock in profits by reducing their positions at high levels, with examples including Huashang Fund's products, which saw a stock position drop to 51% after a significant quarterly gain of approximately 48% [10] - Fund managers have expressed cautious views regarding high valuations in growth sectors, leading to a temporary reduction in positions to manage portfolio volatility, with plans to optimize once market styles shift [10]

Group 1 - Public funds have shown an overall trend of increasing positions in equity assets during the third quarter, particularly in the TMT (Technology, Media, Telecommunications) and power equipment sectors [1][2] - The average stock position of all public funds reached 83.28% by the end of the third quarter, an increase of 2.13 percentage points from the end of the second quarter [1] - The concentration of holdings in public funds has increased, with stock-type open-end funds and mixed open-end funds seeing concentration levels rise to 56.81% and 57.72%, respectively [1] Group 2 - Among fund companies, 27 firms had products with an average stock position exceeding 90% by the end of the third quarter, with Allianz, Zhuque, and Fidelity having over 94% [2] - The report from CICC indicates that the market sentiment has become more unified, with a notable increase in the concentration of holdings and a shift towards TMT and power equipment sectors [2] Group 3 - Several equity funds have significantly increased their stock positions, with some exceeding 99%, such as Huaxia Panyi and CITIC JianTou [3] - The Wanji New Opportunities Value-Driven Fund increased its stock position from 22% at the end of the second quarter to 93% by the end of the third quarter, indicating a strong bullish sentiment [3][4] Group 4 - Fund managers have adjusted their portfolios by reducing exposure to dividend stocks and increasing positions in domestic technology chains, reflecting a shift in risk preference [4] - Other funds, such as GF Industry Selection and Jin Xin Quality Growth, also made bold increases in their positions, achieving over 20% gains [5] Group 5 - Some funds opted to reduce their positions to lock in profits as the market approached the 4000-point mark, with examples including Huashang Fund, which decreased its stock position from 90% to 51% [6] - Concerns over high valuations in growth sectors led some funds to adopt a cautious approach, reducing positions to manage volatility [6]

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].