Investment tycoon Yang Dong's New Year thoughts "exposed"

In the past three years of adjusting the market, the prominent figure Yang Dong has successfully earned a 30% return and has once again revealed his investment strategy.

Information from sources indicates that the Ningquan Investment team he leads stated in their latest investor communication materials:

Although the beginning of 2025 started with a continuous decline in stocks, it is not necessarily a bad thing. The style characteristics of the rebound market in the fourth quarter (of last year) cannot be the long-term trend in the future. Only amidst the continuous ups and downs can the outline of a slow bull market be hidden.

The Ningquan team also believes that among various investment asset choices, equity assets are quite a good option for domestic funds, of course, opportunities only exist within a portion of equity assets.

In his words, Yang Dong seems to have spotted some opportunities again.

Master of Withstanding Declines

As a dual heavyweight in both public and private equity, Yang Dong has been quite "eye-catching" in the past few years.

From the performance of product net values, during the more than three years of stock market adjustments, most of Ningquan's series of products (some established in the second half of 2021) have maintained their par value most of the time.

Moreover, in the "9.24" market of 2024, the products under this institution also kept pace with the performance of market blue chips, raising cumulative returns to around 30%.

This is considered one of the most outstanding performances among private equity heavyweights who started around the same time.

Half Equity, Half Derivatives?

Industry information indicates that one of Yang Dong's secrets to achieving "excess returns" in recent years is the clever layout of derivative investments.

The existence of the latter not only hedges the adjustment pressure of the individual stocks held but also manages portfolio risk, and sometimes even becomes a weapon for upward attacks.

This characteristic is still maintained at the beginning of 2025.

Information from sources shows that as of January 2025, the stock equity position of Ningquan's Zhiyuan series products is approximately at a level close to 50%.

In addition, they have also allocated nearly 48% to "other assets." The latter is believed to include Ningquan's very low-profile derivative layout.

From the perspective of major asset allocation, Ningquan's products are well-prepared for both "offensive and defensive" aspects.

Heavy Positions in Real Estate, Chemicals, and Communications

Furthermore, additional information indicates that the top five heavily weighted industries in Ningquan's stock layout are real estate, basic chemicals, communications, electrical equipment, and public utilities.

Compared to three months ago, there has been a noticeable reduction in basic chemicals, while the allocation in real estate and communications has remained basically stable, with positions in electrical equipment and public utilities having increased.

This seems to reflect that Ningquan is moderately cashing out on assets that have previously generated profits and increased significantly, while adjusting to new layouts.

Significant Decrease in Convertible Bond Holdings

Another interesting detail is that as one of the earliest teams in the industry to study and discover the investment value of convertible bonds, the investment team led by Yang Dong has reduced its layout in convertible bonds over the past few months.

From around 6% in their portfolio, it has been significantly reduced to less than 2% The corresponding market has seen a significant recovery in a large number of convertible bonds after "9.24".

This may also be a noteworthy characteristic.

Adjustment Logic Emerges

Regarding the aforementioned portfolio adjustments, the Ningquan team also provided some interpretations, mentioning:

Due to a good performance in the rebound market in the fourth quarter of last year, the team made some adjustments to their positions in the fourth quarter.

However, they are quite confident in uncovering opportunities from the stock market.

They stated: "Although the beginning of 2025 started with a continuous decline in stocks, we do not see it as a bad thing. The style characteristics of the fourth quarter's rebound market cannot be the long-term trend in the future. Only through continuous ups and downs can the profile of a slow bull emerge."

Based on the judgment of a slow bull, Yang Dong provided a relatively clear expectation for this year: "We believe the probability of achieving positive returns this year is very high."

Warning About Long Bond Leverage

In addition, the team has a crucial viewpoint: equity assets are a very good choice for domestic funds, of course, only for a portion of equity assets, not including all stocks.

Following this logic, he further pointed out: the future market will still be structurally complex, and it is normal for intermediate trends to appear that go against the major trend; we should appreciate such market characteristics.

It is worth mentioning that at the end of 2024, Yang Dong had previously warned about "leveraging" in the bond market, and he still "reiterated" this "concern," mentioning:

The publicly traded 30-year government bonds are still a new thing for most investors,...... a type considered very safe can provide annualized returns of over double digits, which has captivated many investors. Government bond investments are also relatively easy to leverage, and the returns from leveraged funds can be extremely profitable.

But there is no such thing as low risk with high returns. Whether such a low annualized interest rate can withstand various uncertainties over a long period is quite concerning.

Risk Warning and Disclaimer

The market has risks, and investments should be made cautiously. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investing based on this is at one's own risk