Core Viewpoint - The article highlights the investment strategy of Shen Li, a fund manager at Caitong Fund, who has achieved consistent positive returns in the volatile A-share market since taking over the Caitong New Vision Mixed Fund in January 2021, with a year-to-date return exceeding 66% as of September 18, 2023 [1] Investment Strategy - Shen Li's investment approach is characterized by a "dual avoidance" strategy, which avoids excessive pursuit of short-term economic cycles and mechanical reliance on static low valuations [3] - The strategy involves a two-layer screening mechanism: a top-down approach that requires industry prosperity to remain stable and a bottom-up focus on key factors such as profitability certainty and risk-reward ratio [4] Market Outlook - Shen Li believes the market is currently in a phase of repair and deepening, with sentiment indicators returning to normal levels and moving towards optimism without reaching overheating [5] - He identifies several key sectors for future investment, including AI, semiconductors, and high-quality manufacturing companies that have undergone value reassessment [5][6] Sector Analysis - AI is expected to attract significant capital inflows in the coming years, with hardware being the main axis of the industry cycle, drawing parallels to the strong internal momentum seen in the liquor industry in 2018 [5] - The semiconductor industry is entering a second upward cycle, characterized by improved development quality compared to the previous cycle from 2019 to 2021 [5] - High-quality manufacturing companies that have established new barriers in global capacity layout are favored, as they are expected to open up new growth curves [6] - In the consumer sector, price competitiveness is becoming a crucial criterion for selecting companies, with a focus on high-value products that meet certain consumer demands [7]

Core Insights - The article highlights the investment strategy of Shen Li, a fund manager at Caitong Fund, who has achieved consistent positive returns in the volatile A-share market since taking over the Caitong New Vision Mixed Fund in January 2021, with a return rate exceeding 66% as of September 18, 2023 [1] - Shen Li's investment approach focuses on a balanced strategy that avoids being confined to "growth" or "value" labels, seeking resilient targets in growth and flexible spaces in value [1][2] Investment Strategy - Shen Li categorizes mainstream investment strategies into three types: left-side deep value, right-side thematic trends, and a middle-ground approach focused on cyclical and prosperity research, opting for a non-typical path that leans towards growth within value or vice versa [2] - His strategy emphasizes "dual avoidance," steering clear of excessive pursuit of short-term prosperity and mechanical reliance on static low valuations [2] - A two-layer screening mechanism is employed: a top-down approach requiring industry prosperity to not decline, and a bottom-up focus on key factors such as profitability certainty, growth continuity, and risk-reward ratio [2] Market Outlook - Shen Li perceives the current market as being in a deepening recovery phase, with sentiment indicators returning to normal levels and moving towards optimism, but not yet overheating [5] - He identifies several sectors for potential investment, including AI, which is expected to attract significant capital inflows in the coming years, particularly in hardware [5][6] - The semiconductor industry is seen as entering a second upward cycle, characterized by improved development quality compared to the previous cycle [6] - Companies in the manufacturing sector that have successfully expanded globally are viewed as having undergone a value reassessment, with new competitive barriers established [6] Consumer Sector Insights - Shen Li emphasizes the importance of price-performance ratio in selecting consumer companies, suggesting that the trend of household deleveraging may create structural opportunities for consumption recovery [6] - In the traditional liquor sector, while overall industry pressure exists, leading companies with channel optimization and market share enhancement capabilities are expected to see further valuation recovery post-industry consolidation [6]

Core Insights - The article highlights the investment strategy of Shen Li, a fund manager at Caitong Fund, who has achieved consistent positive returns in the volatile A-share market since taking over the Caitong New Vision Mixed Fund in January 2021, with a return rate exceeding 66% as of September 18, 2023 [1] - Shen Li's investment approach focuses on a balance between growth and value, avoiding the constraints of traditional labels, and seeks resilient targets within growth and flexible spaces within value [1][2] Investment Strategy - Shen Li categorizes mainstream investment strategies into three types: left-side deep value, right-side thematic trends, and a middle-ground approach focused on cyclical and prosperity research, opting for a non-typical path that leans towards growth within value or value within growth [2] - His strategy emphasizes "dual avoidance," steering clear of excessive pursuit of short-term prosperity and mechanical reliance on static low valuations [2] - A two-layer screening mechanism is employed: a top-down approach requiring industry prosperity to remain stable, and a bottom-up focus on key factors such as profitability certainty, growth continuity, and risk-reward ratio [2] Market Outlook - Shen Li perceives the current market as being in a deepening recovery phase, with sentiment indicators returning to normal levels and moving towards optimism without reaching overheating [5] - He identifies several key sectors for investment, including AI, semiconductors, and high-quality manufacturing companies that have undergone value reassessment [5][6] - The AI sector is expected to attract significant capital inflows, with hardware being the main axis of the industry cycle, drawing parallels to the 2018 liquor industry [5] - The semiconductor industry is entering a second upward cycle, characterized by improved development quality compared to the previous cycle [5][6] - High-quality manufacturing companies that have established global production capabilities are seen as having new competitive barriers, with a focus on those with product and brand competitiveness [6] - In the consumer sector, the trend of price sensitivity is highlighted, with opportunities arising from structural recovery in consumption, particularly in high-value products [6]

Core Insights - The Shanghai Composite Index has surpassed 3800 points, indicating a rapid rotation of market hotspots across different sectors, characterized by structural features rather than a uniform rise in all stocks [1] - Fund manager Shen Li has demonstrated a unique advantage in recent structural market conditions, with three of the four equity products he manages achieving a net value doubling in the past year [1] - Shen Li's investment philosophy focuses on finding growth within value and discovering value within growth, with a continued emphasis on AI computing power and overseas manufacturing [1][4] Investment Strategy - Shen Li has developed a differentiated investment approach that combines value discovery for resilience with dynamic expansion to capture cross-sector opportunities, forming a methodology based on "win rate + odds + industry prosperity" [2] - The strategy emphasizes identifying undervalued or overlooked companies with intact long-term growth logic, rather than chasing high-flying stocks outside of the established capability circle [2] - Shen Li maintains a principle of "buy low, sell high" while expanding his capability circle from consumer and pharmaceutical sectors to technology [2] Portfolio Management - The core of Shen Li's strategy is risk avoidance, focusing on companies in stable economic cycles rather than those in clear downtrends, which enhances portfolio resilience during market fluctuations [3] - Portfolio structure optimization is crucial, with a balanced approach to industry concentration to control volatility while seizing cross-sector opportunities [3] - The shift in strategy has led to a decrease in turnover rate, indicating increased stability in holdings and a foundation for long-term returns [3] Sector Focus - Shen Li is concentrating investments on AI computing power and overseas manufacturing, viewing these sectors as the primary "fishing grounds" for investment opportunities [4] - The AI computing sector is seen as being in the early stages of penetration, with significant growth expected over the next three to five years despite current low demand [5] - In overseas manufacturing, Chinese companies are transitioning from product exports to global brand and channel development, enhancing their competitive advantages [6] Resource Investment - Shen Li identifies investment opportunities in cyclical stocks by capturing new trends in supply and demand, particularly in metals like copper, gold, and lithium, which are evolving into long-term growth sectors [6] - The trend of Chinese companies "going out" is accelerating, with increasing control over mineral resource exploration and development, leading to a tightening supply and faster-growing demand for metals [6]