GF Ruiyi leadsfundManager Lin Yingrui likes climbing, and the loneliness of a few people is a kind of enjoyment for him. “Mountaineering is the solitude of a small group of people. I joined Shanying Club when I was at Peking University. There was only one tent when camping on the mountain. There was no one within a few miles, which made me feel very peaceful.”
In investment, Lin Yingrui does not blindly follow the trend, enjoys loneliness and peace, and is committed to finding investment targets with underestimated values. “We hope to provide investors with some calm and powerful strategies and products, and strive to bring stable, explainable, and reproducible returns to holders.” Unlike investors who pay attention to yield, Lin Yingrui pays more attention to risk The adjusted return is the potential volatility and maximum drawdown that you need to bear for every one percentage point of return.
Wait patiently for the mean to return
Lin Yingrui prefers to be in unpopular areas that are temporarily not concerned by the market, and choosesPerformanceCompanies that have good growth potential on the market but are undervalued are patiently waiting for the excess returns brought by the return of value.
The different style stems from Lin Yingrui’s deep understanding of value investment and his investment belief in working hard to bring a good experience to the holders. “I can’t judge when the holder will come to subscribe for my fund, nor can I judge how long his holding period is. As a manager, we choose to build a relatively low-volatility, small With a retracement and good long-term return on the net worth curve, it is hoped that the holders can have a real sense of gain after buying and holding them for a certain period of time.”
How to achieve better returns on the basis of low volatility? Lin Yingrui distilled the strategy into eight words: not afraid of upsets and not chasing hot spots. He explained that hotspots refer to targets with a lot of discussion in the current market and relatively high cumulative yields, and the probability of greater stock price volatility is relatively high. If you blindly chase hot spots, the probability of bearing large fluctuations is relatively higher. Not to be afraid of upsets is to pay attention to objects that are temporarily not sought after, but the fundamentals have changed and there are opportunities for mean reversion.
“I like to sell varieties whose valuations have risen when the market is busy; when the market is pessimistic, through fundamental judgment and analysis, I pay attention to the objects that everyone currently considers worthless.” Lin Yingrui said that the mean reversion strategy is often required. Confronting the market, the ability to withstand pressure may be the most important source of alpha.
This kind of reverse operation means that there is a lot of pressure to bear at certain stages, and the mature investment system and strategy is Lin Yingrui’s confidence to dare to be inconsistent with the mainstream of the market. “Since I made investment in 2015, I have firmly adopted the main strategy management portfolio with the value factor contributing alpha, looking for the direction of mean return in the market, and then patiently waited for the return of value.”
After anchoring the main line, Lin Yingrui tried to optimize the strategy from various angles. According to his introduction, from a logical point of view, there are two main ways to optimize a strategy: one is to dynamically adjust parameters similar to engineers, to adjust the main parameters of the strategy according to different market conditions; the other is to add auxiliary strategies. Help the master strategy through the period of discomfort. “In the past three years, we have done a lot of work in these two areas and made a lot of progress.”
The industry beta that captures the bottom reversal
In terms of portfolio management, Lin Yingrui is divided into three levels: position selection, mid-range industry, and selected individual stocks. First of all, at the level of asset allocation, make low-frequency (one or two years or even longer dimensions) timing. “When we judge that there may be systemic risks in the market, we will reduce the stock position and try our best to avoid large net value fluctuations. This may cause fall-covering.Fund net worthNot much to keep up, but from a long-term perspective, for most holders, small retracements and small fluctuations are more conducive to their persistence in long-term investment. “
Second, start from the meso level and look for industries facing bottom reversals. Lin Yingrui will track the industries that have continued to decline in performance or have been sluggish in the past 3 to 5 years, look for the turning point of the economic reversal, and explore opportunities for continuous improvement. After finding the changes in the data, he will in-depth study the sub-industry data and industry logic, and lock in the industries with sustainable opportunities in the next two or three years.
After identifying the industry, Lin Yingrui will further study the company. He will focus on two types of targets: one is the outstanding companies that have won in the down cycle, mainly industry leaders; the other is not being eliminated in the down cycle, management quality, or cost control, etc., are getting better and better. Varieties with higher upward elasticity.
The new fund to be managed by Lin Yingrui-Guangfa Xinrui One-Year Holding Period Hybrid will be issued from November 1 to November 5. The fund’s stock investment ratio is 60% to 95%, of whichHong Kong Stock ConnectThe underlying stock does not exceed 50% of the stock assets.
(Source: Shanghai Securities News)
(Original title: Preference for underestimated industries to provide calm and powerful strategies-Interview with GF Ruiyi leading fund manager Lin Yingrui)
(Editor in charge: DF398)
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