Core Insights - The report highlights the "Net Profit Discontinuity Strategy" which has achieved an absolute return of 63.03% this year, significantly outperforming the benchmark index by 39.07% [3][11] - The "Davis Double-Click Strategy" has shown a historical annualized return of 26.45% from 2010 to 2017, with consistent excess returns exceeding 11% each year during that period [3][7] - The "Enhanced CSI 300 Portfolio" has provided a relative excess return of 17.41% this year, indicating strong performance compared to the CSI 300 index [13][17] Group 1: Davis Double-Click Strategy - The Davis Double-Click Strategy involves buying stocks with low price-to-earnings (PE) ratios that have growth potential, aiming to sell once growth is realized and PE increases, thus achieving a "double-click" effect on earnings per share (EPS) and PE [3][6] - Historical backtesting from 2010 to 2017 shows the strategy's annualized excess return of 21.08% against the benchmark [7] - The strategy has generated a cumulative absolute return of 48.89% this year, outperforming the CSI 500 index by 24.92% [8] Group 2: Net Profit Discontinuity Strategy - The Net Profit Discontinuity Strategy focuses on stocks that show significant upward price gaps on the first trading day following earnings announcements, indicating market approval of earnings surprises [10][11] - This strategy has achieved an annualized return of 29.22% since 2010, with a cumulative absolute return of 63.03% this year, outperforming the benchmark by 39.07% [11][12] - The strategy's performance is based on selecting stocks that have exceeded earnings expectations over the past two months [10] Group 3: Enhanced CSI 300 Portfolio - The Enhanced CSI 300 Portfolio is constructed based on investor preferences, including GARP (Growth at a Reasonable Price), growth, and value investing styles [13][17] - The portfolio aims to identify undervalued stocks with strong profitability and growth potential, utilizing factors like PBROE and PEG [13] - This year, the portfolio has achieved a relative excess return of 17.41% compared to the CSI 300 index, demonstrating its effectiveness [17]