Core Viewpoint - The article emphasizes the investment strategy of Zhou Jing, a fund manager with extensive experience, focusing on absolute returns through a framework of "three lows and one less" combined with fundamental changes in companies [2][3][5]. Investment Strategy - Zhou Jing's investment philosophy has shifted from relative ranking to absolute return orientation, aiming to identify optimal risk-reward opportunities [3]. - The "three lows and one less" framework consists of low valuation, low volatility, low attention, and less capital speculation, which helps identify stocks with better safety margins [4][5]. - The strategy also involves looking for stocks with positive fundamental changes, such as policy catalysts or industry improvements, which can lead to valuation recovery and earnings growth [5]. Portfolio Construction - The investment opportunities are categorized into two types: "high win-rate opportunities" from stable leading companies and "high payoff opportunities" from companies undergoing significant fundamental changes [5]. - Zhou Jing focuses on sectors like non-bank financials, machinery, chemicals, electric equipment, and pharmaceuticals, where "three lows and one less" stocks are more likely to be found [6][11]. Process Management - A strict process management system is in place, covering stock selection, position building, profit-taking, and risk management, all aimed at controlling volatility and maintaining safety margins [7][8]. - The approach includes left-side positioning, pyramid building for entry points, and strict stop-loss and take-profit strategies to lock in gains [8]. Market Outlook - Zhou Jing believes that despite the fast-paced trading environment in the A-share market, opportunities based on low valuations and improving fundamentals will persist [11]. - The investment philosophy aims to achieve stable returns while navigating market volatility, focusing on a replicable and verifiable investment methodology [11].

Core Viewpoint - In the context of rapid style rotation and fluctuating hotspots in the A-share market, the focus is on how to pursue returns while controlling risks, which has become a core concern for many investors [1] Investment Strategy - The investment approach proposed by the manager of Yinhua Return Fund, Zhou Jing, emphasizes returning to fundamentals and seeking investment opportunities in undervalued, low-volatility, and low-attention assets [2] - Zhou Jing has developed an absolute return investment path centered on "three lows and one less + fundamental changes," leveraging her extensive experience in both cyclical and consumer sectors [2][7] Performance Metrics - As of March 10, the Yinhua Return Flexible Allocation Fund, managed by Zhou Jing since April 30, 2025, has achieved a return of 37.48%, significantly outperforming the benchmark return of 4.41% during the same period [2] Investment Philosophy - Zhou Jing's investment philosophy has shifted from relative ranking to an absolute return focus, emphasizing risk-adjusted return metrics such as Sharpe ratio and Calmar ratio [5][6] - The "three lows" refer to low valuation, low volatility, and low attention, which provide a favorable research space for investors [7] Stock Selection Framework - The stock selection framework includes identifying stocks with low valuation and volatility that are experiencing positive fundamental changes, such as policy catalysts or industry improvements [7][8] - Investment opportunities are categorized into "high win-rate opportunities" and "high payoff opportunities," aiming to balance risk and return [8] Sector Focus - Zhou Jing's investment focus includes cyclical sectors like non-ferrous metals, machinery, and electric equipment, as well as consumer sectors such as home appliances, food and beverages, and pharmaceuticals [9][10] - The strategy involves selecting stocks with stable fundamentals and high return on equity (ROE), while also identifying turning point opportunities within consumer stocks [9] Process Management - A disciplined process management system is in place, covering stock selection, position building, profit-taking, and stop-loss strategies, all aimed at controlling volatility and maintaining safety margins [10][11] - The investment approach includes a diversified portfolio to hedge risks while concentrating on stocks with the best research insights [11] Market Outlook - Zhou Jing maintains a cautious stance in the current market, focusing on finding "three lows" stocks within her capability circle, despite the increased trading pace and volatility [13] - The investment strategy aims to achieve returns that keep pace with or exceed market performance while adhering to the principles of low valuation and improving fundamentals [13]