This is the first part of the investment searcharticle.
I've been wondering, among the 3,599 ** managers in the public offering industry, which ones can really be regarded as the top class?
Perhaps everyone has his own answer. It is a star manager with a management scale of more than 100 billion yuan and one person can bring huge revenue to the company, or a high-performance manager who continues to rank among the best and steadily makes money for holders, or an Internet celebrity manager who holds extremely aggressive positions and is well-known.
It wasn't until I saw a letter from Li Xiaoxing to investors that the author had his own answer:
The real top-notch manager can not only have a drink with the holder when the big ** comes, but also share the weal and woe with the holder when he is underestimated.
Empathy is the highest level of bond between managers and investors.
On January 4 this year, Yinhua released a letter from Li Xiaoxing, a well-known manager, to investors.
In this letter, Li Xiaoxing reviewed the market performance in 2023 in detail. He analyzed that in the past two years, the active underperformance index is more of a mean reversion of the large excess returns from 2019 to 2021.
In addition to the outlook for the follow-up market, Li Xiaoxing also mentioned at the end of the letter that he has been increasing his holdings of ** under his own management, and most of the assets are currently invested in ** under his own management, and he empathizes with the losses of holders in the past two years.
Li Xiaoxing said that he has been increasing his holdings of ** under his own management, which is supported by information. The two most recent annual reports have been disclosed in the 2023 semi-annual report and the 2022 annual report, and there are data in the annual report of Yinhua Xinyi, which Li Xiaoxing participated in the management
At the end of 2022, the manager of Yinhua Xinyi held more than 1 million shares of Class A and 0 shares of Class CAs of June 30, 2023, the manager of Yinhua Xinyi still holds more than 1 million shares of Class A shares, and holds 100,000-500,000 shares of Class C.
In fact, this is not the first time that Li Xiaoxing has "dug out his heart" with the holder.
In the second quarter report of 2022, Li Xiaoxing wrote a 6,000-word long article to sort out the gains and losses of investment in the past six months, and at the same time expressed deep apologies for the losses of ** holders. He also mentioned in the second quarter report that he is increasing his holdings of ** under his own management, and he is very optimistic about the market outlook. I didn't expect the market to be unlucky, this is a later story.
Comparing Li Xiaoxing's two sincere apology letters, the author found that Li Xiaoxing's expression of optimism is very different: a year ago, in the paragraph of apology, he was optimistic about the market outlook on the whole;The word "optimistic" is absent from the latest letter, but it is full of confidence in the outlook for various industries.
I don't know how the mentality of ** manager Li Xiaoxing has changed after the test of the market in the past two years.
But in any case, investment managers who are always willing to believe that "their own interests are tied to the interests of their holders" are more inclined to believe that they will be more attentive to asset management, because they have almost no way back - once their performance collapses, they cannot get out of it and take advantage of their reputation and most of their net worth.
I sincerely hope that there will be more top managers like Li Xiaoxing in the public offering industry, who will be truly responsible for the interests of holders. Instead of some top-notch **managers, the loss has nothing to do with him, and in the end, he patted his ass and left, leaving a mess.
Finally, I will give you the letter written by Li Xiaoxing to the holder at the end of 2023 for everyone to taste.
Dear Investor Friends:
2023 is fast coming to an end, and it could be an even more difficult year for participants in the capital market than in 2022. The changes in the external environment and the weakening of the money-making effect have made the market's confidence weak, and the entire A-share market may be in a state of stock game. The traditional leading white horse stocks have underperformed, the market is more focused on current profits, and the discounted future cash flow is relatively secondary, the valuation of growth stocks has continued to fall, and the strength of defensive high dividends and thematic micro-cap stocks has continued throughout the year.
In 2022 and 2023, the overall performance of active equity** has been relatively poor for two consecutive years, and the market has increasingly questioned active investment. However, in most of the past ten years, the excess returns accumulated by the active market are also quite a lot. It is true that as market participants become more and more mature, the excess space for active ** may also gradually decline, but we believe that the underperformance for two consecutive years is more a mean reversion of the large excess in 19-21. The excess of active equity generally occurs in the upward stage of the profit cycle of large industries, such as TMT in 2013-2015, consumption upgrading in 2017-2020, and new energy in 2020-2022.
We believe that the overall corporate earnings in '24 may be stronger than in '23, and there may be a number of industries whose earnings cycle is starting to rise. Combined with the spirit of the first economic work conference, we will focus on the following three directions of investment in the past 24 years: science and technology, security and internal circulation. At the same time, in the 24th year of global politics, many countries will enter the election cycle, which will be accompanied by policy uncertainty, as well as relatively radical statements and slogans during the election campaign, which may have a certain impact on sentiment and external demand.
The targets covered by technology and security are often overlapping, and they are also the direction that the market is more optimistic about, which also represents that the current stock price carries a lot of expectations. In the electronics sector, we are optimistic about chip-related, semiconductor equipment, parts and materialsIn the computer sector, we are optimistic about information and innovation, data elements and artificial intelligenceIn the military sector, we are optimistic about new quality and new domains, aviation, and aerospace-related;In the new electricity sector, we are optimistic about automation and sea breeze.
At present, consumer confidence is at a low position, residents' expectations for future income are not high, and the valuation of related companies is also in the historically low area, we believe that with the stabilization and recovery of the macro environment, future income expectations and consumer confidence will rebound. In the consumer sector, we prioritize companies with stable structures, reasonable valuations and strong free cash flow. As society enters a stage of high-quality development, there are companies with stable growth and gradual increase in dividend ratios in consumer stocks, and we believe that they may gradually attract the attention of the market.
Since the beginning of management, I have been increasing my holdings of my own management, and most of my assets are currently invested in my own **. In the past two years, we have also suffered a lot of phased investment losses, and we can empathize with the emotions of the holders. In the coming year, we will continue to work hard to manage the portfolio well, and hope that the portfolio performance can achieve good performance!
End of full text).Risk warning: The article represents a personal opinion only. Investment is risky, and financial management needs to be cautious.