Core Viewpoint - The article highlights the strong performance of small-cap stocks and the rising popularity of quantitative products, particularly the market-neutral strategy, which has shown promising returns in the first half of the year [2][4]. Summary by Sections Performance of Market-Neutral Strategy - As of June 30, the market-neutral strategy ranked fifth in median returns among 16 private equity secondary strategies, with a median return of 6% and an average return of 5.98% [2][3]. - The overall average return across all strategies was 10.07%, with a median return of 6.91% [3]. Factors Contributing to Performance - The article discusses the favorable market conditions for the market-neutral strategy, including active trading and the premium on small-cap stocks contributing to excess returns [15]. - The reduction in basis costs due to the convergence of stock index futures is also noted as a significant factor [15]. Definition and Mechanics of Market-Neutral Strategy - The market-neutral strategy involves maintaining low-risk positions, typically within ±10%, and focuses on price discrepancies between related securities rather than predicting market movements [6]. - The strategy's returns can be summarized by the formula: Total Return = Long Position Return - Short Position Return - Basis Cost, where basis cost is influenced by the futures premium or discount [11]. Recent Trends in Basis Costs - Recent data indicates a significant reduction in the basis of stock index futures, with annualized basis rates for major contracts showing improvement from deep discounts to more favorable levels [12]. - The convergence of basis is attributed to a recovery in the A-share market and a decrease in bearish sentiment in the futures market [12]. Future Outlook - Analysts suggest that the favorable environment for the market-neutral strategy may continue, especially if the basis remains narrow and market activity stays high [16]. - The article notes that the A-share market's trading volume has consistently exceeded previous months, indicating a robust trading environment [16]. Top Performers in Market-Neutral Strategy - The article lists the top-performing market-neutral strategy products for the first half of the year, with notable managers and their respective returns [18][19].

Group 1 - The average return of 12,843 private equity securities products as of the end of May is 4.34%, with 9,608 products achieving positive returns, representing 74.81% [1] - Stock strategy private equity products lead the performance this year, with an average return of 4.81% from 8,487 products, and 6,238 products achieving positive returns, accounting for 73.50% [1] - Multi-asset strategy products follow closely, with an average return of 4.14% from 1,439 products, and 1,075 products achieving positive returns, representing 74.70% [1] Group 2 - Futures and derivatives strategy products have an average return of 3.19% from 1,339 products, while combination funds have an average return of 3.09% from 473 products, indicating similar performance [2] - Combination funds show a higher stability with 86.68% of products achieving positive returns compared to futures and derivatives strategies [2] - Bond strategy products have the lowest performance this year, with an average return of 2.42% from 1,105 products, and 959 products achieving positive returns, representing 86.79% [2] Group 3 - Quantitative strategies have strengthened due to the small-cap growth style, with an average return of 8.46% from 1,480 quantitative long equity products, and 1,282 products achieving positive returns, accounting for 86.62% [2] - Subjective long equity strategy products have an average return of 3.98%, which is less than half of the quantitative long equity strategies [2] - Market neutral strategies have an average return of 5.00% from 726 products, outperforming subjective long strategies [3]