In this round of bull market from 2019 to 2020, like consumer, semiconductor and other industries, medicine is the most dazzling industry, with many people chasing it, and it has also achieved many star pharmaceutical managers such as Ge Lan and Zhao Bei, and the scale of their management is more than tens of billions.
However, there is no whooping red flowers.
Because of the peak growth rate of performance, and then coupled with the impact of overseas interest rate hikes, since June 2021, the pharmaceutical sector has experienced the stages of killing valuation and performance in the past three years, and the decline can be said to be very miserable, with the largest decline in the pharmaceutical and biological index exceeding 45%.
However, although the whole plate is substantially large, the industry's income is gone, but medicine is a very large plate, there are many subdivisions, according to the Shenwan secondary industry division, there are 6 different subdivisions, some subdivisions due to the favorable policy, the industry prosperity is upward, such as traditional Chinese medicine, the increase in the past two years is quite good.
In other words, although the industry's earnings are poor, there are still structural gains. Therefore, the performance difference between the pharmaceutical themes in the past two years is also very large, some are with the plate**, and some have better returns, and the difference between the first and last earnings is even more than 60%, and the gap is still very large.
Calculated from the highest point in July 2021, the largest decline in China Securities Medical is very large, close to 60%, but the performance of the financial health industry managed by Wan Minyuan is quite good, with a decline of only 267%, not with the whole plate **, is equivalent to moving against the trend with the entire plate, which is quite difficult.
Data**: Choice, as of 202312.15
Therefore, it is intended to make an evaluation of the financial health industry.
Wan Minyuan is a doctor of biomedical science from Sichuan University, with more than 12 years of investment experience and more than 7 years of public investment management experience. He has successively served as an industry researcher of Yinhe**, Guohai**, and Rongtong**, and an investment manager of Shenzhen Qianhai Mingyuan Ruida, and joined Rongtong again in July 2016. Since August 2016, he has been the first manager of Rongtong Health Industry, and the current management scale has exceeded 8.8 billion yuan.
Pay attention to cost performance, flexible rotation configuration.
From the perspective of investment style, the allocation of the financial health industry is relatively balanced, and Wanmin is far from being too over-allocated to a certain sub-industry, and will basically allocate some, so that the scattered portfolio allocation will have less fluctuations. At the same time, from the perspective of the changes in the industry configuration of the combination, Wan Minyuan pays more attention to the cost performance of the industry, and will not blindly stick to it, but will carry out flexible rotation operations.
For example, in 2021, outsourcing services such as medical devices and CRO performed better, so Wan Minyuan allocated more, with a weight of more than 36% and 20% respectively, so the performance of the financial health industry during this period of time was also relatively good.
However, the latter two industries began to decline, but in recent years, pharmaceutical businesses such as pharmacies have performed better, so Wan Minyuan has reduced the allocation of medical services, and then increased the allocation of pharmaceutical businesses.
Financing the proportion of industry allocation in the health industry.
Data**: Choice, as of 20236.30
However, rotation is simple to say, but it is not easy to do a good job, if you step on the wrong rhythm, not only can not increase the income, but may further expand the loss, so the strategy iteration of the manager is higher, and you need to continue to do tracking research.
Do not participate in the huddle, prefer the unpopular**.
Judging from the details of the position, Wan Minyuan's shareholding is reversed, does not report to the group, and the preference of the mainstream pharmaceutical manager is different, the proportion of group shares is low, and the preference for small and medium-sized caps and low valuations is low.
For example, judging from the top ten holdings in the third quarter of 2023, except for Changchun High-tech, which is a well-known white horse stock, the others are all relatively small in market capitalization, and many people are unpopular stocks, such as Yixintang, Jianzhijia, etc., it is estimated that many people may not have heard of it before.
Data**: Q3 report, as of 20239.30
Absolute return thinking, preference for low valuations**.
In terms of investment style, Wan Minyuan is more inclined to the concept of absolute return, pays great attention to risk control, and the valuation of the position is relatively low. For example, since 2020, the price-to-book ratio of the top 10 heavy stocks in the Rongtong health industry has been relatively low as a whole, and it is much lower than the average of the same kind every quarter.
Data**: Q3 report, as of 20239.30
Because there are mainly unpopular stocks and relatively low valuations, the volatility of the financial health industry is much lower than that of similar stocks. For example, since 2019, the largest drawdown in the Rongtong health industry has been 2899%, but the maximum drawdown of CSI Medical in the same period exceeded 60%, which is still a very large difference.
Significantly increased by institutions.
Good things can't be hidden. Due to its excellent performance and strong risk control capabilities, the financial health industry has gradually been tapped by institutional investors in recent years, and the proportion of institutional holdings has steadily increased, from less than 14% at the end of 2020 to 52 at present58%。
Data**: Report, as of 20236.30