[Turn] investment strategy and investment system

Yanhaijin-http://blog.sina.com.cn/s/blog_4e9b6f470102vf54.html investment strategy and investment system "The following is the investment discussion section of Green Hill investment upcoming products, Green Hill Investment Contact email address is: [ Email protected] "

Our fund will be fully invested in the US market. We will take long-only (long strategy) and Long-short (multi-empty hedging strategy) if the internal control of the cooperating institutions allows. The position of the fund long-only in the 30%-100%,long-short position in the range of 0%-30%. This strategy determines that the excess revenue of our product comes from two aspects: Stock selection and the discovery of relative error pricing. At the same time, this strategy allows us to focus on the choice of stocks on the basis of more flexibility to face the future market volatility. If the Long-short policy cannot be implemented, we will hedge the potential systemic risk by buying a variety such as a market reverse ETF in the portfolio.

The purpose of this QDII product specifically invested in the U.S. stock market stems from our three beliefs: the long-term growth cycle of the US economy, the super-long rise of the US dollar, and the super-long bull cycle of U.S. stocks.

We believe that the typical characteristic of the current global economy is the single-polarization trend of the US economy. The typical feature of the global economy in the first decade of the century was the growth of the concerto for speeding growth in China's economy, marked growth in the major economies of the world, major growth poles in emerging economies and resource economies, and a sharp rise in global asset price synchronization. It all began with the 2008 financial crisis as the end point. The global economic trend after the crisis has seen a marked divergence. The slowing growth of China's economy is a sign that emerging economies are entering the plight of middle-income growth and reform, while at the same time bringing the growing plight of resource countries. and the Japanese and European economies are subject to institutional reform and population aging and other factors such as stagnation. The post-crisis US economy is thriving, benefiting from factors such as low energy prices and inventory repair in the housing market and high technology. In the long term, the demographic structure of the major economies is only optimal in the United States, which is one of the core reasons for our long-term view of the US economy.

The dollar clearly benefited from the single-polarization trend in the US economy. The more immediate reason is that the US current-account balance is significantly improved by falling energy prices and a sharp rise in domestic energy supplies, while the US capital account will benefit from a rebound in U.S. domestic investment returns. At the same time, the U.S. fiscal deficit will be reduced because of good economic growth, which may result in profit. The dollar, as an international currency reserve, is clearly facing a shortage of dollars in international markets. The appreciation of the dollar is a long-term trend.

Stocks have been influenced by the Fed's QE since the financial crisis, but more from the fundamentals of health. Benefiting from these factors, corporate earnings may still grow better in the future, underpinned by a long bull market for U.S. stocks.

We will adhere to the framework of deterministic investment, whether long or multi-empty hedging strategies. We will assess the certainty of the investment process as the most important link.

Investment is a difficult process. We know that ordinary investors have seen too much rhetoric, too many advanced investment theories. We are well aware of the ugliness of these ornate rhetoric and advanced theories in the rearview mirror. Therefore, the pursuit of reasonable expectations, the investment process as simple as possible to become our main goal.

We believe that the various variables facing investment are extremely complex. But broadly it can be categorized as three, fundamentals (fundamental), liquidity (liquidity) and mood (emotion). We look at the team over and over again, and we think we don't have the possibility of generating excess revenue in the latter two factors consecutively. We believe in the simple truth that, on both of these factors, continuous decision-making will result in the rapid disappearance of the excess gains resulting from a single seemingly inevitable success and ultimately damage our rate of return. We attach great importance to the fundamental factor, and think of it as a continuous accumulation process that can be replicated. But at the same time, we are very wary of fundamental research and investment models based on this. It stems from our understanding of the boundaries of reason. And therefore, the fundamental investment model is the most risky type of investment style.

The traditional investment framework will be the cornerstone of our investment analysis. But it is clear that the academic framework has been widely used to conclude that it is often quite similar to the court. We believe that the application of tools is influenced by such factors as knowledge framework, methodology and world view.

We think we have a proper worldview in a country such as the United States in which business are businesses, which are exactly what the business should look like. We believe in the role of free competition and are convinced that free and disorderly competition can lead to orderly order. We are convinced that competitive factors can explain many areas of society, not just the economic sector. At the same time, we believe that we are a team to explore the world with a strong curiosity, the new knowledge of learning will never cease. In-depth study of Mr. Munger's miscalculation? Psychology, and always against our decisions, will become the norm.

The above-mentioned species are the comprehensive constituent factors of deterministic judgment. We believe that the deterministic stage of company development is the most ideal stage of investment, especially the rapid growth of certainty. The historical stage is that the company jumps from a relatively small market value to a stage that is much larger than the current market value. We share this stage of investment through a long-held approach.

We believe that this set of deterministic investment frameworks requires a hundredfold of effort, bold assumptions, careful verification, and pseudo-fidelity. It is the key point of determining the investment system to explore the market value space of company development as early as possible to find out the time of firm certainty establishment. At the same time, this is our first step in risk prevention and control, but also the core link. Our first attitude towards all potential investors is to first negate, and then be sure (Sorry,you is a bad guy unless you prove yourself.). The re-approved investment decision based on the initial negation will be a process of repeated argumentation. We believe in simple tenets and seize the opportunities that we understand to invest.

In terms of the specific options for a stock, we tend to choose the change person (Game-changer). This is also the origin of the product name. This product invests in the change position will be no less than 50% of the position.

A transformative person is a word that is abused and more used to boast or praise others. But, in our view, the transformative person has a strict definition. A Game-changer is a company that creates a new market and eventually replaces the existing market.

From our investment experience to summarize, the transformation of the growth of the main divided into two major paths, from the Gap market (niche-market) gradually grow into the mainstream market (mainstream) of the transformation and the established large market mutants. The vast majority of those who change belong to the former. Such innovators create a new market through technological innovation, business model innovation or service innovation, initially reflecting only a smaller market (niche-market). But this new market has gradually grown, eventually moving to the mainstream market, thus replacing the old market (technology or services). A single cup of coffee from Green Gables is a typical change for this type of person. Keurig's single-Cup coffee machine was born at the beginning of a very small market, with many coffee brands, drink varieties of the accession, more retail channels to join, Keurig the ecological gradually grow, eventually become the United States Home Coffee machine consumption mainstream choice, began and gradually replaced the coffee machine market. We believe that our more bullish dexcom are also part of this category of change. Continuous glucose meter through technological progress, will grow from a smaller market into the mainstream market, and eventually replace the finger blood meter market.

The latter way of the change, relatively rare, occurs in the high-tech industry and the pharmaceutical industry. The rarity of such a change is largely related to competition. In a market that has been proven to be huge in capacity, it is very difficult for a small company to develop a brand new product or service that completely overturns and replaces the old product or service. The mutation in the big market is mostly a disruptive technology, and needs to be matched in every aspect. The birth of a typical Apple iphone, through a revolutionary mobile phone products, completely subvert the function of the industry, and strong brand appeal and execution of deep and rapid impact on the entire industry. Or, as in the field of biotechnology, Geely Company's completely subversive hepatitis C treatment drugs, revolutionary technology, coupled with a strong marketing capabilities, the miracle has been forged.

The transformative can be generated in all walks of life, and we are more inclined to research and invest in consumer products, the Internet industry, and the biomedical industry than the creators of change.

Our risk control will continue the entire investment chain, from the initial investment object selection to the build mix, follow-up tracking, portfolio re-evaluation, stop loss and so on. Bijigongyuyiyi Fantasy, will be completely abandoned by us. Our portfolio construction will be relatively balanced, so that the dispersion of the industry dispersed companies.

[Turn] investment strategy and investment system