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Text/Liu Zhentao

The disclosure of the second quarterly reports of public funds has begun, and many fund products have disclosed their second quarter report cards for 2024. As a "vanguard", Shi Cheng of SDIC UBS Fund Management disclosed the second quarter report cards of the products he manages early.

In the second quarter of 2024, the products managed by Shi Cheng continued the decline in the first quarter, and the decline was higher than in the first quarter. The cumulative decline of many funds managed by Shi Cheng in the first half of 2024 exceeded 20%.

The decline in the fund's net value has led to a loss in fund profits and a decline in asset size. In the second quarter, the products managed by Shicheng suffered a total loss of 1.7 billion yuan. Combined with the loss in the first quarter, the profit loss of the products managed by Shicheng has reached 2.8 billion yuan in the first half of 2024.

In terms of scale, with the decline in fund assets in the second quarter, Shi Cheng's management scale also dropped to less than 10 billion yuan, and Shi Cheng is no longer a 10 billion-level fund manager in the market.

The profit loss in the second quarter was 1.748 billion, and the scale fell below 10 billion

Shi Cheng resigned from one fund in the second quarter of 2024, and currently manages 6 funds. Among them, 5 funds are managed by Shi Cheng alone, and 1 fund is jointly managed with fund manager Li Wei.

After reviewing the second quarter reports of the six funds managed by Shi Cheng, the net value of the six funds fell in the second quarter. Among them, the net value of five funds fell by more than 15%. The fund with the largest decline was the SDIC UBS Industrial Transformation One-Year Holding Mixed Fund, which fell by 16% in the second quarter of 2024 and more than 24% in the first half of the year.

The fund with the smallest decline among the six funds is the SDIC UBS Industrial Upgrading Two-Year Holding Mixed Fund, which fell 9.91% in the second quarter. This fund is jointly managed by Shi Cheng and fund manager Li Wei, while the other five products with larger declines are all managed by Shi Cheng alone.

Statistics on the profit of the six funds managed by Shi Cheng in the second quarter show that the profits of the six funds have suffered losses in different situations. Data shows that among the six funds, the profits of the five products managed by Shi Cheng alone have suffered large losses, with losses exceeding 100 million yuan, of which the China Investment UBS New Energy Hybrid Fund suffered a loss of 598 million yuan. The total profit loss of the six products managed by Shi Cheng in the second quarter reached 1.748 billion yuan.

In the first quarter of 2024, according to the first quarter report of the fund, the six funds managed by Shi Cheng suffered a loss of 1.086 billion yuan. Combined with the loss in the second quarter, the six funds managed by Shi Cheng suffered a total loss of 2.8 billion yuan in the first half of 2024.

The fund's net value fell, the fund suffered losses, and the asset size of the six funds managed by Shi Cheng declined.

After reviewing the second quarter reports of the funds, the asset sizes of the six funds managed by Shi Cheng all declined to varying degrees. Among them, the asset size of SDIC UBS New Energy Hybrid Fund declined significantly, with the combined asset size of Fund A and Fund C decreasing by 660 million yuan.

In terms of Shicheng's management scale, Wind data shows that as of the end of the second quarter of 2024, Shicheng's management scale was 9.534 billion yuan, a decrease of 2.428 billion yuan from the end of the first quarter of 2024. Shicheng's management scale has fallen below 10 billion yuan.

Why did the fund products managed by Shi Cheng fall for two consecutive quarters, and why did the five products he managed alone fall so much? This may be related to Shi Cheng's investment strategy.

Betting on a single track, the "Cai Songsong" in new energy

There are many fund managers with distinct personalities in the public offering market, and some fund managers prefer to make a single bet on one track and are known to the market.

A well-known investor who bet on a single track is Cai Songsong, the former fund manager of Noah Fund. The fund that Cai Songsong once managed bet on the semiconductor track, and was once called the "No. 1 in semiconductors" by the market. Shi Cheng of UBS SDIC has a similar investment style to Cai Songsong, and also bet on the new energy track, and was once called the "Cai Songsong" of the new energy track by the market.

Looking at the second quarter holdings of the six funds managed by Shi Cheng, the top ten holdings of the five funds managed by Shi Cheng alone are very similar. Regardless of whether they are new energy-themed products or not, they are almost all fully invested in new energy stocks.

For example, in the second quarter, 9 of the top ten holdings of SDIC UBS Advanced Manufacturing Mixed Fund and SDIC UBS Industrial Trend Mixed Fund were the same; the top ten holdings of SDIC UBS Industrial Trend Mixed Fund and SDIC UBS New Energy Mixed Fund were exactly the same.

In addition, data from the second quarter report of the fund showed that the market value of the top ten heavily-weighted stocks in the five funds managed by Shi Cheng alone accounted for more than 70%.

In 2020 and 2021, the new energy track was a hot spot in the capital market. The funds managed by Shi Cheng at that time also chose to hold a large number of new energy stocks. Shi Cheng, who caught up with the trend, achieved good results at the time by holding a large number of new energy stocks.

For example, the net value of SDIC UBS Advanced Manufacturing Hybrid and SDIC UBS New Energy Hybrid managed by Shi Cheng increased by more than 100% in 2020. Shi Cheng became famous overnight and became a new fund manager of SDIC UBS Fund.

Strike while the iron is hot. After Shi Cheng became famous, SDIC UBS Fund began to let Shi Cheng issue new products. In June 2021, Shi Cheng issued and established SDIC UBS Industrial Trend Mixed Fund. In 2022, Shi Cheng issued 2 funds, SDIC UBS Industrial Transformation One-Year Holding Mixed Fund and SDIC UBS Industrial Upgrading Two-Year Holding Mixed Fund.

With the issuance of new products, Shi Cheng's management scale also increased. At the end of the second quarter of 2022, Shi Cheng's management scale reached 24.716 billion yuan, making him a fund manager with a scale of tens of billions in the market.

After launching the new product, Shi Cheng continued his investment style of betting on one track. The three funds he launched later also chose to bet on the new energy track.

Starting from 2022, the market began to pull back and the style switched. The new energy track was not as hot as in the past and began to cool down. The management performance of fund managers investing in the new energy track in the market began to decline. The products managed by Shi Cheng also experienced a decline in performance, and the decline was large.

For example, the SDIC UBS Advanced Manufacturing Hybrid Fund managed by Shi Cheng had a cumulative performance return of 453% in September 2021, but as of the end of June 30, 2024, the fund's cumulative return had retreated to 62.55%. Ant Fund shows that the fund has fallen by 58.18% in the past three years, and the maximum retreat in the past three years has reached 72.66%.

In particular, from 2021 to 2022, Shi Cheng issued three new products, and Shi Cheng's tenure return loss exceeded 40%. Among them, Shi Cheng managed the SDIC UBS Industrial Transformation One-Year Holding Mixed Fund for 1 year and 361 days, with a tenure return loss of 50%.

Overall, Shi Cheng's investment style is aggressive and he prefers to bet on a single track. When the track he bets on is in the hot spot, he will achieve good results. However, once the market style changes, the performance will drop sharply. It can be said that Shi Cheng's managed funds are very aggressive, but their ability to resist pullbacks is weak.

In addition, regardless of the theme, the funds managed by Shi Cheng choose to bet on one track. The holdings are highly similar, and the risks are concentrated, which can easily lead to a situation where all fund products prosper or suffer together.

What do you think about the performance of products managed by Shi Cheng of Guotou UBS Fund in the second quarter and the fact that his management scale fell below 10 billion yuan?