Chapter 118: Fund Position Building Issues
Monday, June 9, 2014; Gu Junhao arrived at Junshi Capital’s Fund Business Department on time at 8:30.
The first purpose was naturally to check the three people's recent rate of return and see how they performed recently. In fact, Gu Junhao still knew the general performance of the three people.
Gu Junhao’s requirement was not just to do T in the simulation trading, but also to require the three of them to record some trading experiences every day, which Gu Junhao would also check regularly.
Judging from the after-market operation experience log, the three of them should not have suffered an overall loss, but I haven't checked the recent trading days, so I don't know the specific situation.
"Xu Jianqing 20.5%, Liu Tingting 13%, Wang Ruoyu 11.8%." After looking at the overall results, Gu Junhao looked through the delivery notes of the three people.
Judging from the delivery notes, Xu Jianqing is the most wild one. He dares to do T with a full position at any time. His drawdown rate is the largest among the three. Although Wang Ruoyu has the lowest rate of return, he has the most stable performance, and his drawdown rate is best controlled among the three.
Liu Tingting is a girl. Her personality has some advantages over men. Women are generally more careful. Liu Tingting's style tends to be bold and careful; there are times when she is fully invested, but there are also times when she is cautious.
The recent average amplitude of Dongfang Wealth is 15.81%, with an increase of 8.37%. All three of them have achieved a profit margin above the final 8.37%. If the T-trading does not achieve results above the average increase, it is actually a loss; it is better not to do T-trading if it only contributes commissions to the brokerage firm.
To use stock terminology, if the actual rate of return of any of them is lower than 8.37%, it would be a false negative line; Gu Junhao's standard is not for the account to turn green for real, it is much stricter than that, even a false negative line will not be accepted.
However, Liu Tingting's 13% return rate was somewhat beyond Gu Junhao's expectations. From the log, Wang Ruoyu seemed to be more emotionally stable than him. Unexpectedly, she overtook him in the end.
"All are pretty good. Everyone has passed the test. We don't need to do another month of simulation trading." Gu Junhao said with a smile: "Xu Jianqing has the highest rate of return. You will be the team leader. Your salary will increase starting next month."
"Okay, thank you, boss." After being happy, Xu Jianqing said, "Can I trade the real money today? I can't wait any longer."
"Don't worry, listen to me. Xiao Wang and Xiao Li, don't be discouraged. Try to bring Xiao Xu down in the next transaction."
"Don't lose heart. I let him take advantage of me this time. It's only a matter of time before I defeat him." Wang Ruoyu said with a curled lip. He had the worst grades, so it was inevitable that he felt a little embarrassed.
"Xiao Wang, although your rate of return is the lowest this time, I still want to praise you. Your drawdown rate is the most stable among the three of us. This is very good. You should continue to maintain it."
Any investor who can control the drawdown rate to the maximum extent will at least beat more than 70% of people ; the first thing to ensure in stock trading is not how much money to make, but to lose as little money as possible.
All three of them have passed the assessment, so the next step is naturally to add more responsibilities to them, and the work of building a fund position will begin; in Gu Junhao's position setting, 70% of the fund funds will be used for medium and long-term waves, 20% will be used for intraday T, and 10% will be used for short-term operations.
In the large-scale position building stage, most of the losses are actually intraday losses until the position is completely built; Gu Junhao designed it this way to make the fund net value curve rate smoother and more beautiful.
As for the specific funds allocated to each person, Gu Junhao has his own considerations in this regard.
"Okay, let's get back to the topic. Since the three of you have passed the assessment, you can now officially start the real trading. Real trading is different from simulation trading, so you must be mentally prepared." Gu Junhao said seriously.
Many people perform very well in simulation trading, but this is not the case in real trading. They may make money in simulation trading for the same stock, but lose money in real trading.
In Gu Junhao's opinion, this is more of a psychological problem. Real trading involves the investment of real money, which will cause certain psychological pressure. This is not the case with simulated trading. In simulated trading, you don't have to lose even a single Le Bean.
All three are college students who have just entered the society. Although they all have professional knowledge, none of them can be considered excellent traders. It is still unknown whether they can withstand the pressure of real trading.
The boss is going to officially allocate real money! Xu Jianqing, Wang Ruoyu, and Liu Tingting looked at each other with flickering eyes; in fact, it was not only Xu Jianqing who was eager to trade in the real market, but also the other two.
Several people have been experiencing various simulated trading since college. Now they have finally entered the workplace. As a trader, they are still busy in the simulated trading every day. Although they earn a good salary, they are actually looking forward to a change in their hearts.
"Let me first talk about the style and tone of the fund. The first fund is called Growth Mixed. As the name suggests, we are focusing on growth stocks this time and will not be limited to a certain sector."
"Investing in growth stocks does not mean that we are blindly biased. We will also allocate some relatively stable stock targets, such as securities companies, or later there will be banks, insurance companies and other blue chips. However, the current amount of funds is limited, so the main configuration of our fund is a combination of small and medium-sized enterprises + securities companies. I hope you are clear about this."
"We mainly target small and medium-sized growth stocks. I believe you three are familiar with the characteristics of this type of stocks, that is, the circulating market is relatively small, and the process of building a position is very difficult. However, I have also taken this aspect into consideration, so this time we have chosen targets that have undergone stock splits and share transfers."
Afterwards, Gu Junhao explained to the three people the specific allocation of positions. After the three people digested this information, he began to announce the specific targets.
"Since we are a private equity fund, the specific positions are not as strict as those of public funds, so we can use this flexibly, and you can also be relatively flexible in the process of building positions."
"As for the specific positions to be built, each of you can take a copy of the document I just brought over. It contains the basic information of the positions I have selected."
Everyone must be fully prepared before entering the operating room; the operating room has strict requirements. If you leave after entering, you will not be allowed in again, and all communication equipment will be confiscated.
"There are currently five stocks for building positions. In addition to Dongfang Wealth, there are four other stocks. You are relatively familiar with Dongfang Wealth, and you can learn about the other four first."
"70% of the funds, or 28 million, will be used for mid- to long-term planning. Let me first explain how it is allocated: 8 million goes to Dongfang Wealth, 7 million to Xibu Securities and Yinzhijie respectively, 4 million to Wan'an Technology, and 2 million to Hailanxin."
"Of the remaining 12 million yuan, 8 million yuan is used for T trading and 4 million yuan for short-term operations."
"It's true that most of them are small and medium-sized growth stocks. Even the brokerage firm you buy is a small brokerage firm with its number starting with 002." At this moment, the three of them couldn't help but think in their hearts.
"Boss, you really favor the GEM. Three out of the five stocks are GEM stocks. But who will operate these stocks?" Xu Jianqing said with a smile.
"Well, the next step is the allocation of specific stocks." Gu Junhao didn't care about Xu Jianqing's interruption. This was just his personality. In his mind, there were no such things as workplace standards. There was only the difference between obeying and not obeying.
It is this kind of character of his that Gu Junhao admires. He believes that only this kind of new talent is what he needs and can be cultivated slowly.
"Wang Ruoyu is in charge of Dongfang Wealth. Your drawdown rate during the simulation was the lowest. I hope you can maintain this in the subsequent real-time operations and strive to maximize your profits. Is there any problem?"
"No problem, I'll listen to the boss." Wang Ruoyu didn't expect Gu Junhao to hand over Dongfang's wealth to her. You have to know that she has the lowest rate of return among the three.
Judging from the position allocation, Dongfang Wealth is the fund's largest holding.
"Tingting, you are in charge of Xibu Securities."
"OK."
"Xiao Xu, your task is more important. I'll leave Yin Zhijie to you. In addition, I'll give you 2 million yuan in funds for short-term operations. Is there any problem?"
Xu Jianqing's style is unique among the three. Some of his practices are similar to those of hot money. He has complained countless times before about why the stocks in the simulation trading should be limited to Dongfang Wealth.
He even mentioned during the first daily limit period of Yin Zhijie, why not go in and make a short move; this was also one of the reasons why Yin Zhijie was handed over to him, as he had paid attention to this stock.
The emergence of a trader using techniques similar to those of hot money in a fund institution is somewhat unusual, but it is not necessarily a bad thing. If used well, there may be surprises.
Gu Junhao had seen the market situation of institutional day trading before; the fund given to Xu Jianqing for short-term trading was only 2 million, and even if it was all lost, it would not cause any loss to the fund as a whole; it was entirely worth a try to use 2 million yuan to train a qualified hot money trader.
"No problem at all, thank you, boss." Xu Jianqing was extremely happy. He finally had the opportunity to select stocks on his own.
"Don't be too happy yet. Your main task is to build a position in Yinzhijie. It's not for you to indulge in short-term trading."
After saying this, Gu Junhao said seriously: "The specific distribution plan has been discussed, and the targets have been given to you. What I want to talk about next is the requirements."
Seeing Gu Junhao so serious, Xu Jianqing put away his playful expression. He still admired Gu Junhao very much.
"Today is June 9th. My requirement is that, apart from the funds for short-term trading and T-trading, the positions must be fully invested before the last trading day of July. This is the bottom line."
"That means there are only 34 trading days at most. As you know, my requirements are quite high. Completing the position building is only the minimum requirement. During these 34 trading days, I will calculate whether the chips you have collected meet the requirements based on the average stock price every seven trading days. The calculation method is similar to the requirements of your simulation trading."
