Callback! Many small cap funds fell by more than 20 in a month, is it an opportunity to get on the b

Mondo Finance Updated on 2024-02-01

A dog has his day.

Only one month into the beginning of 2024, last year's market "sweet and sweet" is no longer beautiful.

Wind data shows that as of January 30, the small-cap representative index CSI 1000 and CNI 2000 were respectively ** in the month. 06%, even the Wind micro-cap stock index, which was once out of the circle, fell 1569%。

What is the performance of such a recent correlation**? Is the small market ** coming to an end? Let's analyze the hard core in this issue. 1. Many small caps** fell by more than 20% in the month

How eye-catching is the small cap** in 2023?

Take the Wind Micro Cap Index as an example, with a total of **49 in 202388%, and the maximum drawdown is only -1166%。

Take the Beijing Stock Exchange 50 Index as an example, with a total of **1492%, and if the bottom is reached on October 24, then by December 31, 2023, **cumulative**5323%。

This is also in stark contrast to the ** pattern of most broad-based indices.

Data**: wind; Drawing: Hardcore base selection).

Under the trend, the small number of small caps** has become the "big winner" of the public offering ** performance in 2023.

With 5855% of the yield won the 2023 active equity** (ordinary**, partial stock hybrid, flexible allocation) performance of the first performance of the China Beijing Stock Exchange innovative small and medium-sized enterprises selected for two years is a small cap** Not to mention, the 63 small caps classified by wind ** (established before 2023, there are statistics, different shares are calculated separately, the same below) The average return in 2023 has also reached 812%。In this regard, Haitong** analysis said that in 2023, a total of 8 small-capitalization** will enter the top 100 active equity products, and the common characteristics of these small-capitalization** areThey all hold more small-cap stocks with a total market capitalization of less than $10 billion or even less than $5 billion, and they have outperformed in 2023 when the small-cap style is prominent. However, for now, such a highlight** has not continued into 2024, and the corresponding small-cap** has generally suffered a large drawdown.

Similarly, the 63 small-cap** stocks mentioned above have negative returns during the month (as of January 30, the same below), of which 20 have fallen by more than 20%, and the largest decline is the CSB 50 component A C share.

Some of the top losers in the month**; Data**: wind; Drawing: Hardcore base selection).

This ** was established in December 2022, and the latest (as of 2023-12-31) **scale is 13.9 billion yuan. As an index**, it tracks the BSE 50 and pursues returns similar to those of the performance benchmark. In the fourth quarter report, manager Li Jialiang mentioned that the company seeks to control the tracking error indicator at a good level through its self-built "indexation trading system", "intraday timing trading model", "tracking error attribution analysis system", etc.

As for the Beijing Stock Exchange 50, it is a broad-based index composed of 50 listed companies with large scale, good liquidity and the most representative market on the Beijing Stock Exchange.

At present, there are 26 companies in the market that track the BSE 50**, including the shares of the CSB 50 Component A C, and 16 of them were established before 2023. These 16 products returned an average of 1039%, compared to an average return of -21 since 202422%。

Data**: wind; Drawing: Hardcore base selection).

The aforementioned 2023 "Champion Base" China Beijing Stock Exchange Innovative Small and Medium-sized Enterprises Selection is a partial stock hybrid **. This ** was established in November 2021, and the latest (as of 2023-12-31) ** scale is 4100 million yuan, with a yield of -19 since 202451%。

In the quarterly report, manager Gu Xinfeng mentioned that as a theme product of the Beijing Stock Exchange, the main feature is to invest in companies on the Beijing Stock Exchange. In terms of direction, it is mainly to invest in leading companies in subdivided industries that meet the characteristics of specialization, refinement, and innovation in the Beijing Stock Exchange, supplemented by investment in other sectors of A-shares and growth companies in the Hong Kong Stock Connect. There is also the highly sought-after Jin Yuan Shun An Yuanqi, with a cumulative yield of 25 in 202345%, with a yield of -6 since 202456%。However, if you look at the yield of the past three years in an extended dimension, then the cumulative return of this ** has reached 14017%, ranking first in the list of active equity**.

Jinyuan Shun An Yuanqi was established in November 2017, and the latest (as of 2023-12-31) ** scale is 156.6 billion yuan, it is a flexible configuration type**.

In terms of holdings, as of the end of the fourth quarter of this year, the top ten heavy stocks accounted for 1052%, the largest heavy stock accounted for 116%。In the quarterly report, manager Miao Weibin said that he would continue to be optimistic about assets, maintain a high level and adhere to diversified investment, and in addition to choosing low-valuation varieties oriented by industry recovery, he also allocated to a certain extent for some companies with good sustained profitability performance.

2. In 2024, is it still worth looking forward to in small caps?

It is worth mentioning that despite the current wave of big correction in small-cap stocksHowever, many institutions are still optimistic about it

In the latest research report, Shanghai ** said that the Shanghai Stock Exchange 50 and CSI 300 and other ** indices have not yet started a bullish signal in the medium term, and they still need to wait for future opportunities. Overall, the current mid- and small-cap index has better medium- to long-term investment opportunities than the ** index. Zheshang ** said that the style of large and small caps is only the appearance, and the essence lies in the change of the recovery cycle of traditional industries and the rise cycle of emerging industries. Small-cap stocks since February 2021**, from a trend perspective, AI is one of the core clues, and it is still in the early stages of development, which also means that the small-cap style is still in the early stages. Galaxy ** predicts that in 2024, small-cap stocks will be relatively dominant overall, and the possibility of local dominance of ** stocks will gradually increase in the second half of the year.

SDIC ** also said that the differentiation of small and medium-sized caps has come to an extreme position, which means that the volatility of small and medium-sized caps will increase, but the current medium-term small-cap growth dominance pattern has not been reversed.

Despite this, those who are interested in small caps should pay attention to the risks.

On the one hand, in the long run, the market style will show a cyclical switch, and there is no one style that can prevail in the long run.

Hua Chuang** found through data backtesting: since 2010, it has experienced 5** small-cap style switching, specifically, after 13 years, the overall market is structural**, and the duration of each **small-cap style is significantly longer than before, generally lasting 3-4 years.

In other words, it is best for investors not to simply look at the market capitalization style to choose the base, in contrast, do not focus on betting on any style, **and small-cap** allocation, may have a better experience.

On the other hand, the small value of the small cap determines that it is more susceptible to market fluctuations, so the overall volatility will be larger, and the corresponding small cap may have higher returns but also have high volatility.

Therefore, when considering this kind of **, partners must combine their own risk tolerance and do what they can.

Article**: 21st Century Business Herald).

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