Billion-Dollar Private Fund Opens Index Enhancement Fund Quotas

Billion-Dollar Private Fund Opens Index Enhancement Fund Quotas

2024-06-01 144 153

On October 14th, the renowned billion-yuan private equity firm Hainan Evolution Theory Private Fund Management Co., Ltd. (hereinafter referred to as Evolution Theory Assets) issued a public announcement declaring that its index enhancement funds would open up quotas.

The index enhancement funds under Evolution Theory Assets will open up quotas

The latest announcement from Evolution Theory Assets indicates, "In light of the recent increase in clients' asset allocation needs, as well as our confidence in the current economic and stock market prospects of China, our index enhancement funds have attracted considerable attention."

To meet investor demands, Evolution Theory Assets has opened up quotas for its 300 Index Enhancement, 500 Index Enhancement, and 1000 Index Enhancement products.

The arrangement for this opening day is as follows: the 500 Index Enhancement product will be opened on October 15th (Tuesday), and the 300 Index Enhancement and 1000 Index Enhancement products will be opened on October 18th (Friday).

At the same time, Evolution Theory Assets emphasized that, in accordance with the "Interim Measures for the Supervision and Administration of Private Investment Funds" and relevant laws and regulations, the opening of the aforementioned products is only for clients who meet the criteria of qualified investors.

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Specifically, qualified investors must meet the following conditions: having the corresponding ability to identify and bear risks; investing an amount of not less than 1 million yuan in a single private fund; individual financial assets of not less than 3 million yuan or an average annual income of not less than 500,000 yuan in the last three years, etc. Institutional investors must meet the requirement of net assets of not less than 10 million yuan.

Public information shows that Evolution Theory Assets was established in June 2014 and is one of the earliest private fund managers in China to combine active management with quantitative investment. The company's founder and Chief Investment Officer, Wang Yiping, has 17 years of investment experience in the capital market.

The founder previously stated: The current market combines the characteristics of three historical bottoms

On September 26th, Wang Yiping published a signed article, actively spoke out, and firmly looked forward to the future market.He stated that the current market combines the characteristics of three historical market bottoms, namely the internal structural reform of 2005 (equity division reform emphasizing shareholder interests), the liquidity injection of 2008, and the extremely cost-effective stocks compared to bonds in 2014. Each of these three characteristics has historically initiated a major bull market. Now, with all three combined, it indicates that the market is highly likely to turn around from adversity to prosperity.

"For the possible pace of the market's subsequent rise, we tend to use the three-stage propulsion system of a rocket as an analogy. The first stage is the valuation bottom brought about by the joint performance of liquidity from borrowing facilities and high dividends with low valuations. This point is essentially certain," he analyzed. "The second stage, under the combined force of the wealth effect brought by the rise in the stock market, and the recovery of consumption through a combination of measures such as consumption replacement and mortgage balance replacement, there is a possibility that the deflationary spiral expectation could be broken. This part still needs observation."

Regarding the third stage, Wang Yiping believes it is the clearing of manufacturing capacity. The clearing of manufacturing capacity stems from the over-investment and oversupply in the manufacturing industry in the past few years. This clearing may still need a year to confirm. If during this period, market valuation is repaired, consumption recovers, and the manufacturing industry also reaches an industry turning point, then undoubtedly the market will expect the bottoming and rebounding of industrial profits. This is also an important part of the improvement of the economic environment for a major manufacturing country.

Wang Yiping said optimistically: "Whether it is a vertical comparison with history or a horizontal comparison with asset categories, the current moment is a rare buying opportunity for the Chinese stock market."

Private funds' confidence in the October market has surged

According to data from the Private Fund Ranking Network, in October 2024, the ranking network ยท China Hedge Fund Managers A-share Confidence Index was 129.10, an increase of 14.39% compared to September 2024, showing a significant increase in private managers' confidence in the October 2024 market.

Source of data: Ranking Network Rating Research Center, survey time: January 1, 2021, to before the opening on October 8, 2024

Looking at the positions of private funds, as of the end of September 2024, the average position of stock subjective long strategy private funds was 78%, an increase of 5% compared to the end of August 2024. Statistical data shows that by the end of September, private managers had increased their positions.

In terms of the increase or decrease in positions for October, the investment plan indicator value for the increase or decrease in positions in the A-share market in October 2024 was 118.63, an increase of 10.2% compared to the previous month. 6.1% of fund managers plan to significantly increase their positions, an increase of 3.5% compared to the previous month. 29.2% of fund managers plan to increase their positions, an increase of 13.5% compared to the previous month, and 60.4% of fund managers plan to maintain their positions unchanged, a decrease of -16% compared to the previous month.

Overall, in terms of expectations for October, most private managers hold an optimistic attitude, and they plan to maintain their positions unchanged.At the same time, private equity funds are actively buying in. According to statistics from Private Equity Ranking Network, a total of 8 private equity firms have issued 23 self-purchase announcements this year, with a total self-purchase amount of 487 million yuan. Among them, billion-yuan private equity firms are the main force of self-purchase, with a total of 3 billion-yuan private equity firms issuing 16 self-purchase announcements within the year, with a total self-purchase amount of 374 million yuan, accounting for 76.80% of the total private equity self-purchase amount.

Among them, the billion-yuan private equity firm Hainan Xiwa is the most active in self-purchase, with as many as 12 self-purchases within the year, with a total self-purchase amount of 74 million yuan.

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