The star managers of Ruiyuan Fund have revealed their holdings! Optimistic about the wave of artificial intelligence, they have increased their positions in Alibaba and others

According to Zhitong Finance APP, on October 28, the fund products under Ruiyuan Fund disclosed their third-quarter reports, revealing the holdings of star fund managers Fu Pengbo, Zhu Lin, and Zhao Feng. From the holdings, it can be seen that they have increased their positions in technology companies such as Alibaba, optimistic about leading internet companies, and believe that artificial intelligence is the biggest technological transformation wave after the internet.

First, looking at the Ruiyuan Growth Value Mixed Fund jointly managed by Fu Pengbo and Zhu Lin, in the third quarter, the fund's net value increased by more than 50%, with Class A shares rising by 51.09% in the quarter, outperforming the performance benchmark by 14.82%, setting a record for the highest quarterly increase since its establishment in 2019.

Among the top ten heavy stocks in the fund's third-quarter report, three stocks doubled in price during the third quarter, namely Xinyi Sheng (300502.SZ), Shenghong Technology (300476.SZ), and Cambricon (688256.SH). However, the fund managers reduced their holdings in these stocks. Similarly, they also reduced their positions in CATL (300750.SZ), Tencent Holdings (00700), Luxshare Precision (002475.SZ), China Mobile (00941), and Juxing Technology (002444.SZ); Alibaba (09988) and Dongshan Precision (002384.SZ) saw increased holdings.

Fu Pengbo and Zhu Lin stated that they remain optimistic about artificial intelligence, with a focus on allocating to sectors such as internet technology, optical modules, PCBs, chips, and innovative drugs in the third quarter. They maintained a high allocation to equity assets, with stock positions exceeding 90%. The top ten holdings accounted for 66% of the net value, significantly increasing compared to the second quarter.

They mentioned that the main reason for the increased concentration is the significant price increase of the key allocated stocks mentioned earlier, which quickly raised their net value proportion; additionally, the performance of representative companies in the new energy and Apple supply chain among the top ten holdings was also outstanding, further increasing concentration. In the third quarter, the fund reduced its holdings in some companies that had been held for a long time, as their rapid price increase was influenced by misleading news and did not represent an improvement in fundamentals, and adjustments are expected in the future.

Regarding innovative drugs, he believes that valuations are at a high level, but the trend of Chinese innovative drug companies going global has not changed. In terms of stock selection, he prefers those with first-in-class and best-in-class potential and differentiated innovative drug companies.

Another star fund manager at Ruiyuan Fund, Zhao Feng, also performed well. The Ruiyuan Balanced Value Three-Year Holding Mixed A Fund he manages saw a net asset value growth rate of 19.29% during the reporting period, while the performance benchmark return was 13.70%.

In the third quarter, the fund's portfolio was adjusted slightly, moderately increasing holdings in leading internet companies that are at the forefront of AI investment and application, as well as in home appliance companies with very low valuations but stable profit growth prospects Specifically, during the third quarter, the top ten holdings of Ruiyuan Balanced Value Three-Year Holding were: CATL, Tencent Holdings, Luxshare Precision, Focus Media (002027.SZ), Xiaomi Group-W (01810), China Pacific Insurance (601601.SH), Weiming Environmental (603568.SH), Alibaba, China Taiping, and Ping An Insurance (601318.SH).

Among them, CATL and Tencent Holdings may have been passively reduced due to their stock prices reaching the 10% allocation limit; China Pacific Insurance and Weiming Environmental were actively reduced slightly by Zhao Feng.

Zhao Feng stated that AI has become the largest technological transformation wave after the internet, rapidly penetrating various industries and daily life. From the rapid growth of TOKEN usage, both enterprises and individuals are quickly embracing AI, and the process of businesses transforming their workflows through AI to improve efficiency is actively occurring.

Although the future returns on significant investments in foundational model research and data centers are unclear, the main participants in this round of AI investment are leading internet companies, which have ample cash on hand and free cash flow, currently fully capable of supporting the large capital expenditures.

In contrast to the rapidly growing demand and ambitious capital expenditures, the constraints of the physical world are definitively present. The growth in training and inference demand requires substantial computational power support, but the construction of data centers is limited by many physical constraints, which may extend the construction cycle, thereby limiting the growth rate of related hardware demand in the coming years, leading to some uncertainty for companies that have significantly risen.

He believes that some traditional industries with relatively small previous increases, which are at historically low valuation levels, have relatively stable future free cash flow, and their dividend yields are already quite attractive. As time passes and future demand rebounds, the downside risk for these companies has become very low, making them relatively more attractive