Chapter 379: Different Choices for Large and Small Funds
Dingtai New Materials chose to suspend trading after the first trading day in April. Gu Junhao did not know the specific reason. Perhaps the big players in the market had almost collected all their chips, or perhaps the negotiations had entered the substantive stage.
But no matter what, it is good news for Junshi Value Investment. Dingtai New Materials has not yet released its 2015 annual and this year's quarterly results, so Junshi Value Investment's name is not among the top ten circulating shareholders.
Before Junshi Price Investment released its first quarter holdings, it could be said that it was already resting easy.
In fact, the first batch of eight new stocks and Wan'an Technology selected by Gu Junhao all have some particularities. The annual reports of these ten stocks were all released at the end of April, and the earliest stock also released its annual report on April 21.
This can effectively avoid the situation where Junshi Value Investment frequently appears in the list of top ten circulating shareholders of secondary new stocks during the holding period. As for appearing in the list of top ten circulating shareholders again after the annual report is released, who cares?
By that time, these stocks had either been sold out or significantly reduced. As for whether it would mislead some fans who followed Junshi’s price investment to buy, Gu Junhao couldn’t care less.
Nothing in the world can go as planned. Compared with the group that follows the buying crowd, the interests of the fund's investors must be given priority.
The Shanghai Composite Index narrowly held the 3,000 point mark on April 1, followed by a series of positive news, both large and small, released this weekend both domestically and internationally.
On Monday, April 5, the Shanghai Composite Index, driven by the weekend's positive news, fluctuated upward all the way, and ultimately rose by 1.45% for the entire day, moving up another level to 3053.07 points.
The ChiNext Index surged again by 3.36%, marking another day of general gains. Affected by Tesla's orders exceeding US$10 billion, automobile-related sectors performed well today.
The automotive electronics sector surged by more than 5%, and the recently hot charging pile sector continued to take the lead, with the sector as a whole surging by 6.48%.
As one of the most popular stocks at present, Wan'an Technology, after several consecutive trading days of adjustments, its stock price once again closed at the daily limit today, at 24.41 yuan.
Wan'an Technology's total daily turnover reached 846 million yuan. This is the fifth daily limit since its launch, and the stock price increase is unusually strong.
Wan'an Technology, one of Junshi Investment's holdings, has a market value of 97.64 million yuan after today's daily limit, and its profit has reached 62.73%.
At the beginning of the bull market, due to trading volume reasons, Junshi No. 1 gave up holding Wan'an Technology at that time, and the profit did not meet Gu Junhao's expectations.
However, in 2016, Junshi Value Investment made considerable profits by intervening before Wan'an Technology started in early March, which made up for last year's regrets.
In addition, due to trading volume, funds are more inclined to attack the newly-listed stock sector that has been fully adjusted, has active stock performance and fewer locked-in shares, resulting in the overall growth of Junshi Value Investment's newly-listed stock sector being very good in recent times.
The overall trend of the banking and insurance sectors is also steadily upward. Although the increase is not large, it will not drag down the overall net value. BYD's share price closed at 58.97 yuan today, which also has a certain increase.
At 9:30 p.m. on April 5, affected by today's general market rally, Junshi Price Investment's profit reached more than 20% for the first time, and its net asset value rate was 1.2219.
Since its name change and resumption of trading on March 7, Junshi Value Hybrid Growth (125700), under the leadership of fund manager Gu Junhao, has achieved 21 consecutive trading days of gains.
This record is enough to attract the attention of the market. As of the close of the market on the 5th, the overall scale of Junshi Price Investment has reached nearly 1.3 billion yuan.
The Shanghai Composite Index is already above 3050, bringing the downward pressure point close to January 11. Considering the high level of the index and the overall size of the fund, it is already not small.
Therefore, after today's closing, Gu Junhao decided again to make a second limited subscription for Junshi Price Investment, reducing the maximum subscription amount for a single fund account on a single day from 100,000 yuan to 50,000 yuan.
After seeing the fund announcement, investors were really confused. They didn’t understand why Gu Junhao did this. Was he just leaving the money behind?
"Oh my god, why is there another limit? Will the subscription channel be closed if it goes down further?"
"What kind of operation is this, Brother T? Less than a month after the resumption of trading, the quota has been limited twice. It's really unique!"
"Brother T, can't you afford it? If you are afraid of the scale, don't play with public funds. What can 50,000 yuan a day do?"
"That's right! If you can't operate large funds, don't play with public funds. Continue to play with your private funds. I strongly demand that subscriptions be opened."
"The two above, stop stirring up trouble. 50,000 is not a small amount. We leeks don't have that much money to buy funds. It's not enough to invest a few dozen dollars a day. If you continue to stir up trouble, Brother T might really shut you down."
"It has been in the black for 21 consecutive days. That's really impressive. The young fund manager is also very unique. He doesn't care what the market thinks and just follows his own ideas. I support him!"
The fund circle seemed puzzled by Gu Junhao's action. Ordinary investors might still think that Gu Junhao could not handle too much funds, but today, no colleagues in the circle hold this idea anymore.
It has continuously appeared in the top ten of major listed companies, coupled with Junshi No. 2's substantial growth in performance and precise bottom-picking behavior.
If, today, Gu Junhao is still unable to operate large funds like his peers, then his level is too poor.
It is really puzzling that a fund manager like this once again opened the limit when the fund size just reached around 1.3 billion yuan.
In fact, Gu Junhao was somewhat helpless. Junshi Value Investment took over the company after direct acquisition. After the resumption of trading, it could not enjoy the three-month closed position building period like newly issued funds, which resulted in daily position adjustments.
This is like the difference between a newly listed stock and a stock after it resumes trading.
The difficulty of building a position during the closed period is definitely lower. The total amount of funds raised is the same as that raised in the previous period, and the amount in the fund account will not change every day.
However, everything has two sides. The amount of money a newly issued fund is expected to raise is what it is expected to raise. For example, if the amount of money raised is 1 billion, even if it reaches 10 billion on the first day, it can only be distributed to the investors who subscribe in proportion.
But for existing funds like Junshi Value Investment, which is similar to a fund with a new fund manager, there is no restriction. As long as you have the ability, you can take up the full amount raised.
For other fund managers, this may be a good thing, but for Gu Junhao, this convenience seems rather useless.
When the market is sluggish, no matter how big your scale is, if the returns cannot keep up, your shares will eventually be redeemed by investors. During the redemption process, there will inevitably be large-scale liquidation.
Even some loss-making or still optimistic stocks can only be forced to reduce holdings, which leads to a vicious cycle and eventually returns to a low-scale operation mode.
In contrast, if the fund size is controlled below a certain level while ensuring stable profits, why worry about not being able to raise enough funds before the real value investment bull market arrives?
At this point, there are still nearly two years before the value investment bull market after 2019, during which time we will have to experience a real bear market trough in 2018.
When the stock market fell to its lowest point in recent years in 2018, it was a good time to expand the size of the fund.
In the two years before that, controlling the scale and maintaining a steady profit-making style are what Junshi Value Investment should have done.
This is just like the early stages of starting a business. There is no rush to expand the scale. The best way of operation is to improve performance and reputation.
The medium-sized positive line of the Shanghai Composite Index on Monday this week did not continue. The lack of volume caused the index to maintain a volatile mode above 3,000 points and below 3,050 points in the following trading days.
This Friday, April 8, the Shanghai Composite Index even fell below 3,000 points. Within four trading days, the Shanghai Composite Index fell by 0.82% from a weekly increase, and also ended its three consecutive weekly gains.
Today's market is still focused on banks and new stocks. The banking sector, which has been falling continuously following the circuit breaker stock market crash, has seen its valuation return, and coupled with the expectation of dividends, it is a good place for large funds to avoid.
As for the secondary new stock sector, market hot money, speculative capital and retail investors still adhere to the principle of speculating on new stocks rather than old stocks, and are flocking to small and medium-sized secondary new stocks.
Two types of funds and two investment methods have led to a clear division in the market. Those with large funds go to banks, insurance and other sectors to avoid risks, while those with smaller funds go to newly listed stocks to try their luck and see if they can turn a bicycle into a motorcycle.
Among the eight new stocks held by Junshi Value Investment today, only two stocks rose by less than 1%, one rose by more than 3%, and the remaining five stocks rose by more than 5%, showing very strong performance.
In fact, the strongest stock today is Jiuyuan Yinhai. Jiuyuan Yinhai's stock price rose by more than 9% today, approaching the daily limit, and the stock price has reached 114.95 yuan.
The holding cost of 2,800 lots of Jiuyuan Yinhai held by Junshi Value Investment is only around 70 yuan, and the profit has reached about 64%.
Jiuyuan Yinhai, which rose by more than 60%, also became the first new stock of Junshi Price Investment to start reducing its holdings. Today, Gu Junhao instructed traders to reduce their holdings of Jiuyuan Yinhai by 800 lots during the late trading.
Among the eight newly listed stocks, except for Huangshanghuangzhi, which has a moderate increase, the overall profits of the other seven have reached more than 50% .
During this month's confusing period of building positions, Gu Junhao made good use of the funds in his hands, moving between avoiding the banking sector with large funds and gambling on secondary new stocks with small funds.
The new village chief has not yet cracked down on secondary new stocks. He can be said to have turned a blind eye to the speculative capital and hot money speculating on new stocks.
However, in the second half of the year, the regulatory style was different. It was considered a good idea to make a quick buck and run away while the supervision was not strict.
And just today, the liquor sector has experienced two consecutive trading days of adjustment after a rebound since March 1 and a brief peak on April 6.
At today's close, the overall decline of the liquor sector reached 1.54%, and the index broke through the 5-day and 10-day lines, showing signs of adjustment.
"Next week, I will start to reduce my holdings in the newly listed stocks, and then slowly build up my holdings in the liquor sector, which are the 10 stocks I gave you last time. I will study these two sectors carefully over the weekend."
After the review meeting, Gu Junhao said to Liu Tingting that the real time to build a position was about to come!
