Jianghui: The pursuer of absolute positive returns

--Cai Xiaoming Jianghui, general manager and investment director of Beijing Star Stone Investment Management Co., Ltd. "He gives the impression that a person who does things, very modest, also very stable."　　"Mr. Zhang, who participated in the latest quarterly report on the star Stone investment, described his impression of Jianghui, general manager and investment director of Star Stone Investment, and in his opinion, gave his money to the star-stone investment to take care of it. Serious and firm, is Jianghui most friends of his impression-Jianghui do not like to play, sports, singing and dancing are not good at. But it is commendable that Jianghui is smart, diligent and firm in investing.　　As Jianghui own interpretation of "star Stone" a origin-if the star of the constant, Joshi. If the January 2000 Jianghui began as a fund manager as a starting point for his investment career, then in the past 9 years, in the course of the Jianghui from public to private placement, its management or responsible for the fund compound returns as high as 770.84%--and the same period of the Shanghai Composite Index rose to 94.02%.　　This is remarkable in both the public offering and the private sector. Jianghui "laziness" and "diligence" to mention Jianghui's investment characteristics, you have to say that his "lazy"-the index of ups and downs is not like many investors that concern, the number of transactions and trading operations are very few.　　Even not only does not care about the index of ups and downs, Jianghui in the past investment performance, but also his portfolio of stocks in the ups and downs are very light.　　In the past, in the public investment career, there have been in his management of the fund portfolio of most of the stock to complete the position, in more than a year there is no further operation of the situation. "I do not see short-term fluctuations, the bullish stocks in addition to the company's fundamental deterioration, I will hold them for a long time." Hold for 3 years, even longer. I am a very nostalgic person, the stock is like many years friends, will not abandon them.　　"During the work of the bank Credit Suisse, Jianghui management Silver Credit Suisse core Value fund once because the net worth rises faster, had appeared the more redemption, because of the pressure of cashing fund share, Jianghui at that time forced to sell a lot of stock that he had already put on the market, to this one forced to sell, Jianghui from then on recalls has been regretting unceasingly. "If you had money at the time, you would never have abandoned them." "Jianghui recalls the situation when he was forced to sell some of his shares at the time of redemption.　　In fact, the continuation of these stocks to the good trend also basically confirms the Jianghui judgment. In the stock of the two-level market operation, Jianghui is "lazy"-basically buy not move, his investment style at that time many funds are also unique. In a 2005 statistic, 164 equity funds were counted as active. At the time, the activity rankings of ICBC's shareholding were ranked at the bottom 2nd in 164 funds – which meant that Jianghui managed the fund's trading transactions in an extremely inactive state, the turnover rate is also very low, the more image of the description is the basic will not change after the positions.　　The inactivity of the transaction does not negate the growth of its performance, and in the case of the uneven performance of many funds in that year, the net worth growth of the core value of the bank Credit Suisse is very stable. "Zhang Yu later turned twice times, we do not move." ZTE, then bought, the middle has a lot of fluctuations, and then many in the fund also ran, we still insist. I'm a persistent investor, not one or two stocks, but all stocks are long-term investments. From another level, "laziness" is actually an interpretation of Jianghui's value investment.　　In the course of value investment, volatility is unavoidable, price is in the fluctuation of value, although will eventually return to value, but at a certain time, but not necessarily the full reflection of value, which requires investors with a firm belief in long-term investment and sound investment.　　In the two-tier market speculation and investment operations, "lazy" does not mean that the management of the huge wealth of the Jianghui in the investment is quite relaxed, in fact, Jianghui under the other level-corporate research, in this respect, we can see a diligent Jianghui.　　So what are the secrets of corporate research? "There is no secret, that is, to look for stocks of companies that can continue to grow, to thoroughly study the firm and to invest firmly." We spend most of our time working on research industry reports and public company research instead of looking at the plate.　　Jianghui this way. Since then, in the investment of Ufida, Jianghui in order to fully understand the operation of Ufida, in person to the Ufida research 5 times-and this does not include research on public information and company researcher's research.　　In Jianghui's view, the company's research work in the investment process does not have many secrets, but it needs some "ambition", and his ambition is to thoroughly understand the present and future of a company and an industry. Do not see clearly when only half of the face of the complex and constantly in the changes in the securities market, and no one dares to say that will be the myth of undefeated, in fact, as a fund manager, in a volatile market, there will always be "unclear" time.　　When faced with such a confused situation, how should we respond?　　The answer, Jianghui, is to do only half when you can't see clearly. "For example, in the last week of 07, we met with clients, and I said I judged 08 market risk and low earnings." If you're such a judge, you're definitely not doing it, freeing up the money and then going to do some of the arbitrage tools for tiny spreads, and that's the payoff. But in 09, we judged that the returns were medium, the risk was moderate, should be done, not great bull market, so we took out half of the money.　　"Jianghui said. "Now look to take half of the money to earn less, but it does not matter, I earned you, if the long-term to do so, I quit in a bear market, I do not see the markets do half, bull 100% do go in, this is the return." In the absence of any means at present, I think it is feasible to do so. "Time to spend on good business in the investment philosophy and model of the investment of star Stone, Jianghui likes to divide the investment into"Top-down" and "bottom-up" two levels, that is, through the analysis of macro-economic and securities market, the various industries and listed companies of the fundamentals of the study, the formation of a reasonable profit risk ratio of assets allocation scheme and has a clear investment value of the stock portfolio. "Specifically, it is the investment strategy that combines top-down asset allocation and industry allocation with bottom-up stock selection, and puts forward suggestions for investments with core competitive advantages, boom periods and undervalued stocks."　　"In the choice of specific investment targets, Jianghui summed up their experience is" to spend time on the good enterprise. "As a fund manager, you should spend time on good business." Once upon a time (referring to the public offering of funds), foreign shareholders asked us the reason for the performance, I told him that last year's overall investment, the election to the stock profit contribution rate of 60%, and the election of the industry's profit contribution rate of 30%, the election to the market profit contribution rate of only 10%.　　"Jianghui its bullish stock investment types into four types: continuous rising, strong cycle, subject investment and reborn." "The persistent rise is those companies that have a clear core competitive edge that can go through the test of the economic cycle and their growing performance is driving up share prices." And the strong cyclical stock is those who benefit from the macro-economy or industry supply and demand relationship changes, the emergence of a rapid rise in periodic performance companies. The theme investment type is the income from the strong investment theme, the stage performance rises rapidly. Reinvent type refers to the business model of those enterprises, the profitability of a significant upgrade or better.　　Jianghui Frankly, his favorite is the continuous rise of the stock. To be a hedge fund "want to be a hedge fund" has become an increasingly strong idea in Jianghui, which is "natural" in the pursuit of absolute positive returns.　　Especially in the case of stock index futures, the idea of Jianghui hedge fund is firmer. "I entered the fund industry in 98, and I have been doing it for many years. In the previous time, everyone own fry, and then the fund manager stock. This is a big leap, fund managers Fry, this is the specialization of the Division of labor, and then slowly accepted. At the beginning, feel that the money to other people to fry is very bad things, feel the loss to lose in their own hands, and then slowly accepted. So this industry to the present situation, this is the social specialization division of demand. This fund I have been doing for many years, is compared with the index, I have done many years later, because I also hear the ideas of various clients, sometimes not like us.　　"Jianghui said. "2004 years, a U.S. fund manager visited our company, he said I this is not the same as you, he said I want to have absolute return, 90 to 2000, the United States is great bull market, the Fund and the index as much, when the United States Pioneer Fund is very popular, do index funds, the cost is very low. But then it was different, after the dotcom bust, the index fell, and the fund rose.So I always thought, I'm going to do this type of hedge fund in China. "When I came out to do this in 07, I have always wanted to do this product, although there is no hedging tools, with some of our methods, we consider the benefits and the proportion of the method to do this product, now two years down, we initially also achieved such a goal, up we can also rise, When we try not to fall, in the long run, investors are also very good products. Everybody finances, this product is very rich, not light one. So I would like to do this hedge fund products become a special and index ratio, is a supplement to meet the needs of more investors. This is one of our ideas, this is called Alternative Investment bar, is a small category. "I think after our stock index futures, after the hedge fund more, we can make its products like that [US] hedge fund." Those of us who want to do this first, for our China to hold. "