Source: Financial Sharp Eye

Although the ChiNext index once rose by more than 11% in the past month, Caitong Fund, which is heavily invested in technology stocks, has many products that have fallen by more than 10%.

In the past month, more than 10% of products have fallen

Caitong Fund does not seem to be as famous as E Fund, China Universal Fund, Wells Fargo, Bosera and other fund companies, but it is also a fund company with a management scale of more than 100 billion yuan, with 97 products under management.

However, when the overall A-share market rose steadily this month, many products under Caitong Fund lost more than 10% in the past month, among which the largest loss was also the largest partial stock fund under Caitong Fund, with a loss of 10.73% in the near future.

Specifically, in the past month, Caitong Growth Preferred C lost 10.73%, Caitong Growth Preferred A lost 10.72%, Caitong Value Momentum C lost 9.92%, Caitong Value Momentum A lost 9.89%, Caitong Fuxin lost 9.71%, Caitong Wisdom Growth C lost 9.4%, Caitong Wisdom Growth A lost 9.34%, Caitong Ingenuity Preferred 1-year C lost 9.23%, Caitong Ingenuity Preferred 1-year A lost 9.18%, and Caitong Prosperity Selection 1-year C lost 8.59% , Caitong Prosperity Selection 1-year A loss of 8.52%.

The above list is only a product with a loss of more than 5% in the past month, and the performance of these products is in strong contrast with the overall performance of A-shares in the past month, seriously underperforming the market.

Interestingly, the fund products under these Caitong funds have performed relatively well historically.

For example, Caitong Growth Preferred, which has lost the most in the past month, has a return of 42.04% in the past 6 months, a return of 27.32% in the past 1 year, and a yield of 99% since its inception in 2015, especially in the past 6 months and 1 year, which are among the best in similar products.

Another example is Caitong Value Momentum, with a return of 34.79% in the past 6 months, a return of 27.32% in the past year, and a return of 457.53% since its inception in 2011.

The

reason why these two funds have outperformed similar products in the past 6 months may be their heavy positions in technology stocks, including Cambrian, New Yisheng, Zhongji Innolight, Haiguang Information, etc., Cambrian and Haiguang Information can be said to be super technology bull stocks in the A-share year, but the two stocks of Xinyisheng and Zhongji Innolight have been declining as a whole since October 2024.

(Data source: Tiantian Fund Network).

It is worth noting that this position information is already at the end of the fourth quarter of 2024, and it is uncertain whether to adjust positions, whether to reduce holdings of Cambrian and other high-level stocks and increase positions in falling stocks such as New Yisheng, but from the perspective of fund performance, there is a high probability that it has been adjusted to a relatively low level but is still declining.

After all, the fund managers of these two funds are Jin Zicai, who is known as the "rotation master".

"Rising Star" fund manager lapsed?

In fact, what is more interesting is that the fund managers of the products under Caitong Fund that have been performing poorly in the past month are all Jin Zicai, and there are currently 7 products under management, which is a typical one-to-many fund manager. Although it has been delayed for a long time, the historical performance of the products it manages is quite good, most of the products have performed more than 20% in the past year, but since this year, it has been very bleak, and the yield of most products is green.

(Data source: Tiantian Fund Network).

According to the data, Jin Zicai joined Caitong Fund on November 19, 2014, and has served in Caitong Fund for more than 10 years, with the best performance of 319.07% and the latest management scale of 5.862 billion.

Because the products managed by Jin Zicai have performed well in the medium and long term, some people call him "tomorrow's star", and his operation strategy shows a typical rotation style, so some people call him "rotation master", and the long-term performance can be seen from the net value trend of Caitong Value Momentum A, which has been managed for the longest time, and the rotation style can be seen from the fund's position changes.

In terms of rotation style, Caitong Value Momentum A repositioned Chinese Life, Ping An of China, Vanke A, and China Taibao at the end of 2014, repositioned Gongda Electroacoustics, Lianming Co., Ltd., and Xiuqiang Co., Ltd. at the end of 2015, repositioned Ruipu Biotech, Unilumin Technology, and Baotong Technology at the end of 2016, repositioned Kweichow Moutai, Poly Development, and Vanke A at the end of 2017, repositioned Tianfu Communications, Hudian Co., Ltd., ZTE, and Xinyisheng Co., Ltd. at the end of 2018, repositioned Huiding Technology, Dongshan Precision, Goertek Co., Ltd., and repositioned Huiding Technology, Dongshan Precision, Goertek Co., Ltd., Shengyi Technology.

In the fourth quarter of 2020, it will have heavy positions in Xinyisheng, Tianfu Communication, and Jiuzhou Pharmaceutical, at the end of 2021, it will have heavy positions in Muyuan Shares, Wen's Shares, and Tiankang Biotechnology, and at the end of 2022, it will have heavy positions in Huadian International, Huaneng International, and Datang Power Generation, and at the end of 2023, it will have heavy positions in Xinyisheng, Sanqi Mutual Entertainment, Tongfu Microelectronics, and Industrial Fortune Union, and at the end of 2024, it will have heavy positions in Wanchen Group, Hudian Shares, Cambrian, and Shengyi Technology.

Brother Ruiyan here is a complete list of Caitong Value Momentum A's heavy stocks at the end of each year since the end of 2014, in order to clearly see how Jin Zicai, who is known as the "rotation master", rotates when managing products.

Obviously, Jin Zicai's rotation style is still very obvious, and there is basically no preference for a single industry or theme.

However, at the end of 2024 and the beginning of 2025, this rotation seems to be a bit ineffective, and at the end of 2024, only Wanchen Group, Cambrian, and Haiguang Information will rise during the year, and only Cambrian, Haiguang Information, and Jinpan Technology will rise this month, that is, 7 of the top ten heavy stocks in the year are falling, of which Taclink has fallen by more than 32% in the past month.

Today, Jin Zicai's heavy stocks have plummeted across the board, and the estimated net value of Caitong's value momentum has fallen by more than 5%.

The net profit was 170 million, and the management fee was 298 million

Speaking of Caitong Fund, it is necessary to talk about Caitong Securities, Caitong Securities is a listed brokerage company of A-shares, with the latest market value of 36.78 billion, is the controlling shareholder of Caitong Fund (holding 40% of the shares), and is also the largest shareholder of Yongan Futures (holding 30.18%), Yongan Futures is also a listed company of A-shares, with the latest market value of 18.31 billion.

As the fund business segment of Caitong Securities, the current management scale of Caitong Fund is 101.144 billion, and the overall loss in 2022 and 2023 will be two consecutive years, with losses of 1.266 billion and 1.05 billion respectively, and a profit of 1.163 billion in the first half of 2024. Among them, in 2022 and 2023, Caitong Fund hybrid products will lose 1.806 billion and 1.999 billion respectively, equity products will lose 77.4184 million and 103 million respectively, and the total loss of equity and hybrid products in two years will be 3.985 billion.

(Data source: Tiantian Fund Network).

According to the financial report of Caitong Securities, the revenue of Caitong Fund will be 670 million and the net profit will be 190 million in 2022, and the revenue will be 693 million and the net profit will be 172 million in 2023. As the main source of income for fund companies, management fees account for more than 45%, with a total management fee of 298 million in 2023 and 155 million in the first half of 2024.

For Caitong Securities, if the management ability is measured by the ratio of management fees to annual losses, the total loss in 2023 will be 1.05 billion, and the management fee will be 298 million, and the ratio of management fees to loss scale will be -28.38%, which is more ruthless than E Fund, and the total loss of E Fund in 2023 will be 71.427 billion, and the management fee will be 9.274 billion, and the corresponding ratio of management fee to loss scale will only be -12.98%.

Using the ratio of management fees to the scale of losses to measure management capabilities actually reflects the reasonable demands of basic investors who "should not be charged management fees if the fund loses".

In short, Caitong Fund's recent performance is indeed unsatisfactory, especially when the market is rising as a whole, many of its products lose 10%, which is difficult for investors to accept. Although Jin Zicai's rotation strategy was once in the limelight, now it seems to be in trouble, and the rhythm of position adjustment is misaligned with the market. From the perspective of management energy efficiency, there is also a clear gap between Caitong Fund and the industry leader. $Caitong Value Momentum Mix A(F720001)$$Caitong Growth Preferred Mix A(F001480)$$Cambrian-U(SH688256)$