Summary
[In7monthstheincomeexceeds106%!Thepost-90sChinesefundmanagersbehindthebigbreakoutofthecenturyhavemadealotofmoney!Operationalideasareexposed]A single day of wild dumping of 19 billion US dollars, the market value of related stocks evaporated 33 billion US dollars, hedge fund manager Bill Hwang brought “the largest single-day loss in human history”, shocking the global financial circle. At the same time, a Chinese fund manager born in the 1990s was “against” Bill Hwang and shorted Bill Hwang’s leveraged stocks in advance, making a big profit. Its fund returns over 106% in the first 7 months of this year.
Single-day selling of 19 billion US dollars, the market value of related stocks evaporated 33 billion US dollars, hedgingfundManager Bill Hwang brought “The biggest single-day loss in human history“, shocking the global financial circle.
At the same time, a Chinese fund manager born in the 1990s was “against” Bill Hwang and shorted Bill Hwang’s leveraged stocks in advance, making a big profit.Its fund returns over 106% in the first 7 months of this year。
He is Henry Liang.Data from a tripartite organization shows that as of the end of July, the Seahawk China Dynamic fund managed by Liang Hao had an income of more than 106%, ranking first among the global macro strategy funds included in the organization.. From a long-term perspective, this fund has a three-year annualized return of more than 30%, and the Sharpe Ratio of the risk-return indicator that professional investors pay attention to is as high as 1.73.
The above-mentioned tripartite data shows that the Seahawk China Dynamic Fund has a management scale of approximately US$500 million and currently has a team of approximately 10 employees.
Fund net worth“Advance by leaps and bounds.” The 13-year-old fund manager who started trading in stocks and graduated from Peking University returned part of the funds to investors, hoping that the size of the fund would slowly increase. He explained that otherwise, he would be very passive, “people are easy to be proud”. He introduced that all his wealth is in the fund, which is deeply tied to his clients. He has also won the trust of his clients. Many investors have invested in the establishment of the fund and have been there.
Now, in his early 30s, he has been in the market for 18 years.On the evening of September 9, 2021, a reporter from China Fund News and Liang Hao conducted an exclusive interview. During the conversation, the post-90s revealed a sophisticated and tenacity that is not commensurate with his age. Liang Hao said that his investment in the stock market is based on cyclical stocks. He pays little attention to the hot new economy at the moment. Focus on your own circle of competence, not blindly chasing hot spots, doing the right thing is the right way.
Reporter: By the end of July, your fundPerformanceStill very good. Can it be simply attributed, where does the income come from?
Henry Liang: I am a hedge fund with a macro strategy. The stock part is both long and short, and at the same time I use index hedging to reduce the volatility of net worth. In the long part of stocks, two Internet financial stocks have contributed a lot to earnings. However, these two stocks adjusted in July. Because of new uncertainties in the Internet finance industry, the net value of the fund has fallen back a bit. In fact, we also took a “roller coaster”. During the period, the team also did a band, but did not make much money in the middle. In the short part, shorting the highly crowded stocks in the early period is the main source of income.
Since the second quarter, our overall operation has been relatively conservative, and we have mainly adopted an absolute profit strategy.
Reporter: I have a heavy stock of two mutual gold stocks. What do you think of the prospects of the mutual gold industry?
Henry Liang: We have reduced the position of some mutual gold stocks. The current position in mutual gold stocks is relatively comfortable. Industry uncertainty still exists, but the holding companies themselves are very capable of operating, and their valuations are very low, four to five times the price-to-earnings ratio. We are very confident in the company’s fundamentals, but we are also concerned about the uncertainty of the industry.
Reporter: Didn’t you buy new energy vehicle stocks in your portfolio?
Henry Liang:Yes. For me, the current valuation is too high.
In the investment circle, a senior said very well. He said that new energy vehicles are now in a very early stage of competition, and the current leader may not be the future champion. This is like saying that the Olympic Games won the first round of the group stage, and it is still far from winning the championship. The current valuation given by the market seems to indicate that those leading players have won the championship, and that traditional cars are definitely out of play.
This optimism is extreme.
Even though the share price of new energy vehicles has already corrected partly this year, overall I feel that the margin of safety is still not enough, so I am still more cautious.
I came from the traditional old economic sector. There is concern about new energy vehicles because it overlaps with the areas we focus on. What needs to be emphasized is that we are focusing on reverse investment and we never do things that are hot spots.
Reporter: Is the allocation of overseas funds in China too concentrated in those stocks?
Henry Liang:Indeed, those Internet companies are the hearts of many foreign investors. We were short at first because the transaction was already overcrowded. In the case of extreme market sentiment, we made a trade on Internet stocks. The Bill Hwang incident became a catalyst for stock price adjustments.
In fact, generally speaking, we rarely look at the stocks of the Internet industry. I base my stock investment on the cyclical industry.
Reporter: How is your research divided?
Henry Liang:At present, our researchers are divided into two groups, one group is responsible for fundamental research, and the other group is the trading quantification group. The quantitative group earns stable income through statistical arbitrage. Our portfolio generally has 20 to 40 stocks, but the top few heavyweight stocks account for a relatively high proportion.
I just mentioned that our stock investment is based on cyclical industries. When we research, we will exhaust companies in the same industry.Eat the companyFinancial StatementsAnd the industry cycle, when necessary, we will refer to the industry development history of other countries.
We pay very little attention to areas such as the new economy and the Internet.
Reporter: How do you manage your risk?
Henry Liang: Our risk control depends on our absolute profit strategy. This strategy earns us stable returns every quarter and provides a safety mat for the fund. In terms of fundamental investment, we have done in-depth research and bought stocks that are likely to bring excellent returns in a year or more. At this time, you cannot lose the opportunity to obtain returns due to volatility. What to do when there are fluctuations in the middle? Rely on the absolute profit strategy to fill in some holes and survive.
Reporter: After the net worth rose sharply in the first quarter, why did you return the money to investors?
Henry Liang:First of all, we care about the rate of return very much. In the fourth quarter of last year, the fund size was only more than two billion US dollars. If you don’t pay back a penny this year, you can rush to more than 800 million US dollars in the second quarter. The short-term scale will be too fast, which is very bad. As a macro fund, although the strategic capacity is completely fine, we hope that the scale will increase more slowly. Because we have seen too many examples. Some funds performed well at one time. Because they scaled up too quickly, investors came in admiringly, and fund managers didn’t adapt to them, and they eventually destroyed themselves. Secondly, if the scale is too fast, fund managers and companies are also prone to be overly proud, and they need to spend a lot of time and energy to maintain new customers when their performance fluctuates.
Finally, our investors are mainly ultra-high-net-worth families. Our relationship with investors is very close, and we trust each other very much. In my opinion, what can help performance most is a stable source of funds and investor base. Since our establishment in the fourth quarter of 2017, our annualized revenue has been more than 30%. Although the cumulative return is good, there is also a downturn in the middle. Many investors have been with us all the time. We hope to continue to maintain this deep trust relationship.
Reporter: Are there any recent impressive operations in cyclical stocks?
Henry Liang:Last March, when the market collapsed.real estateOur bonds plummeted, and we were heavily stockpiled in real estate bonds. This benefited from years of research on the real estate industry.domesticreal estateWe are relatively sure of the sales situation and trends.
Reporter: Will you worry about missing big opportunities if you don’t look at the new economy?
Henry Liang:will not.
I started trading stocks at the age of 13, and have gone through many cycles. People have fear and greed, and they are always afraid of missing opportunities. But after a few times, you will find that the big opportunity you thought at the time may not be a big opportunity in the long river of time. In many cases, it is a big risk. Because I believe in reverse investment very much, I am not too anxious to miss hot things.
In my opinion, persisting in doing the right thing is the long-term way. Last year when our fund was established for three years, in the first 36 months, we only earned 20 points, and the funds on the street made crazy money. In the market, there are clamors for the new economy to rule the world. What to do at this time? We think we are doing the right thing, but we haven’t gotten the rewards yet, so we choose to continue.
Reporter: Do you think you are a smart person? How much does smartness contribute to investment success?
Henry Liang:When I was in junior high school, I was in the Olympiad Mathematics class. At that time, my middle school was one of the best middle schools in Guangdong, surrounded by people smarter than me, so I never felt smart. I don’t think you need to be particularly smart when investing, especially in stocks. IQ is online, just be curious and thirst for knowledge. I don’t know where the line of IQ is. Generally speaking, I think IQ is online for people who can get to a better university in China.
While observing the growth of researchers, I found that some researchers who graduated from prestigious schools may not perform well, while some researchers from less well-known schools performed well. If one is to define “smart or not smart” according to the test-taking method, it can be said that smart has little effect on investment success. Of course, you can also define “smart” in your own way.
Reporter: What was the opportunity for you to start trading in stocks at the age of 13?
Henry Liang:I was in 2004 when I was 13 years old. At that time, there was a strong speculative atmosphere in the Chinese stock market. I’m still in Orsay. Those parents and teachers said that my parents were crazy. Why does a child enter the “casino” when he is 13 years old.
The opportunity is that there is an elder in my family who is an old stock investor, and he can be regarded as my enlightenment teacher. At that time, my father was in a trading business and also began to participate in the stock market. I have been sensitive to numbers since I was a child, and my father said, “You come and participate together.” After trying it, I fell in love with this “game” and took out all my lucky money for 50,000 yuan. At the beginning of various compensations, but fortunately, my mother was more tolerant. As long as I didn’t lose my study, she said that I could continue to play.
Reporter: What is your motivation for working now?
Henry Liang:I like this question. A good manager certainly does not work for money. First of all, I care about the rate of return, and I hope to have an excellent rate of return with a long enough period. For fund managers, there is nothing more telling than the rate of return. Secondly, I really like macro strategies. In the past ten years, not only in Asia, but also the global market’s macro strategy has declined. On the one hand, the overall performance of the strategy is sluggish. On the other hand, the “big guys” who had a brilliant record before gradually faded out of the stage. The macro strategy is very different from other strategies, and it is difficult to replace it.I want our fund to becomeSuccessful macro strategy hedge funds. At the same time, we also hope to see the macro strategy regain its glory in the world. This is a little feeling.
(Source: China Fund News)
(Original title: 7-month income exceeded 106%! Behind the century’s big liquidation, the post-90s Chinese fund managers have made a profit! The operating ideas have been exposed)
(Editor in charge: DF398)
.