Billion-dollar PEs shrink 20% this year; what did the survivors do right?

After the Mid-Autumn Festival, the A-share market saw a rare two-day winning streak, but the annual returns are still negative.

Against this backdrop, well-known institutional investors have not achieved dazzling results.

For example, the billion-yuan private equity funds have had more losses than gains this year, with an average return of negative figures.

At the same time, the management scale of many billion-yuan private equity funds has also shrunk, leading to their exit from the billion-yuan camp, attracting market attention.

According to data from the Private Equity Ranking Network, as of the end of August this year, there were 235 billion-yuan private equity funds with performance displays, with an average return of -0.05% from January to August.

There were 74 products with positive returns, accounting for 31.49%.

This means that many billion-yuan private equity funds have achieved negative returns in their investments up to the end of August this year.

As a result, the management scale of many private equity funds continues to shrink and has temporarily exited the billion-yuan camp.

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Data shows that there are currently 85 billion-yuan private equity funds, a decrease of 23 from the beginning of the year, a reduction of about 20%.

Among them, Rui Feng Hui Bang and Jin Hui Rong Sheng, which are famous for investing in the "stock king" Kweichow Moutai, are two of them.

The announcement shows that the third fund of Rui Feng Hui Bang has been on the list of the top ten circulating shareholders of Kweichow Moutai since the end of 2018, and the third fund of Jin Hui Rong Sheng appeared on the list of the top ten circulating shareholders of Kweichow Moutai at the end of the second quarter of 2019.

Since then, both funds have held positions until the end of 2023, and have increased their positions multiple times during the period.

It was also during this period that, benefiting from the sharp rise in Kweichow Moutai's stock price, Rui Feng Hui Bang and Jin Hui Rong Sheng entered the billion-yuan private equity camp, and the company's two related products were called the "mysterious third fund" by the market.

However, during the fourth quarter of 2023, both funds reduced their positions in Kweichow Moutai, which was the only public reduction during the period when the two funds held Kweichow Moutai.

At the end of the first quarter of 2024, both funds exited the list of the top ten circulating shareholders of Kweichow Moutai, and did not appear at the end of the second quarter.

Since the beginning of this year, the stock price of Kweichow Moutai has been continuously adjusted.

Around the Mid-Autumn Festival, Kweichow Moutai fell continuously for three days, and this operation of the two funds can be said to be a precise escape from the top.

Up to now, the latest management scale of Rui Feng Hui Bang has been reduced to the range of 2 billion to 5 billion yuan, and Jin Hui Rong Sheng is in the range of 1 billion to 2 billion yuan.

In addition, data from the Private Equity Ranking Network also shows that many well-known private equity institutions have also exited the billion-yuan camp.

Corresponding to the 23 former billion-yuan private equity funds such as Rui Feng Hui Bang and Jin Hui Rong Sheng, 4 private equity funds have newly entered the billion-yuan camp, namely Longqi Technology, Shanghai Boke Private Equity, Pansong Assets, and Guofeng Xinghua (Beijing), mainly focusing on quantitative strategies.

However, in terms of absolute returns, the highest return from January to August this year is not them, but a product of Dongfang Port under Dan Bin, Dongfang Port Marathon Global B shares, with a return of up to 41.02%.

From public information, it is very likely that Dongfang Port Marathon Global B shares stand out in relation to AI.

Since the beginning of this year, Dan Bin has mentioned AI and the AI leader company Nvidia many times, and said that the strongest voice of the current era is still artificial intelligence.

On social media, someone asked Dan Bin, "I don't know how much of Nvidia's proportion in your investment portfolio, as a fringe person in the IT circle, I suggest you should not be superstitious about a company."

In response, Dan Bin replied, "According to the current regulatory provisions, the maximum holding of a single stock cannot exceed 25%, and we hold the top!

The view of the enterprise, the benevolent see benevolence, the wise see wisdom, and in the end, it is the result of cognition that is undertaken."

In the latest concluded semi-annual reports of listed companies and funds, Dongfang Port has also laid out many products related to AI.

In this regard, the author has published an article titled "Nvidia shrinks by 300 billion!

Hong Hao, Dan Bin still strongly support!

Zhao Jianping, Zhao Ji joint increase" in this public account.

In addition, the two products of Xihua Private Equity, Xihua Xiaoniu No.

6 and Xiaoniu FOF Selection, the two products of Ruipu Investment, Rui Chen - Jinggong No.

1 and Rui Hong No.

3, and the one product of Shifeng Assets, Daqiao No.

6A, also achieved good returns, all above 10%.

Among them, as of the end of the first half of this year, Ruipu Investment also had a publicly held position, and its product Rui Xin Private Equity Securities Investment Fund appeared on the list of the top ten circulating shareholders of Tiandi Technology, but the number of shares held was slightly reduced by 2.39 million compared to the end of the first quarter.

Combining the investment philosophy included in the Private Equity Ranking Network, these billion-yuan private equity funds mainly focus on value investment, and they still generally expect the performance of the A-share market in the future.

For example, Liang Hong, the founder of Xihua Private Equity, recently publicly stated, "Adhere to the correct concept, short-term fluctuations always have to be undertaken."

"Long-term holding, knowing the starting point and the destination, the more bumpy the process, the more depressed the front, the more dividends reinvested and collected shares.

The more shares collected on the way, the higher the total return when reaching the destination."

"Investment tempers the mind, and you must not be affected by fluctuations."

Since the second half of the year, these billion-yuan private equity funds have been very active.

Among them, Dongfang Port appeared on the institutional research list of Yihe Jia Industry on August 20.

According to the announcement, the company is a leading domestic manufacturer of medical equipment and consumables in the field of respiratory health.

In the first half of this year, the company's operating income was 382 million yuan, a year-on-year decrease of 48.79%.

In response, the company stated that it was mainly due to the reduction of orders in the North American market.

During the research, this became a topic of concern for institutions.

In response, the company replied, "The company's foreign income in the first half of 2024 has decreased year-on-year, mainly due to the impact of the inventory of ventilators in the US market.

Other overseas regions have not changed much, and the inventory pressure in the US market is gradually dissipating, and it will gradually improve afterwards."

Xihua Private Equity, Ruipu Investment and others have conducted research on many listed companies at the same time, involving 55 listed companies, among which Lanqi Technology, Huaming Equipment, Tianfu Communication, and Weixing Shares have all received attention from two different billion-yuan private equity funds.

Overall, these companies generally have a better basic face, with 53 companies making a profit in the first half of this year, 35 companies achieving year-on-year growth in net profit attributable to the parent company, and 12 companies doubling their profit growth rate.

Among them, the integrated circuit company Lanqi Technology has the fastest growth rate of 624.63%.

In response, the company stated, "On the one hand, the demand for the company's memory interface and module supporting chip demand has achieved a recovery and growth, and the penetration rate of DDR5 downstream has increased, and the iteration of the DDR5 sub-generation continues to promote.

In the first half of 2024, the company's DDR5 second sub-generation RCD chip shipments have exceeded the first sub-generation RCD chip shipments; on the other hand, some of the company's AI 'operational power' chip new products have begun to be shipped in scale, contributing to the company's new performance growth point.

The above two factors have jointly promoted the company's operating income and net profit in the first half of 2024 to increase significantly compared to the same period last year."