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I don’t know whether the fund manager has forgotten his original intention or he is not used to investing in the A-share market.

Author | Market Capitalization Fund Research Department

Editor | Xiaobai

On July 11, Huatai-PineBridge Deputy General Manager Li Xiaoxi resigned from the last two products he managed, ending his more than four-year career in A-share public fund management.

Li Xiaoxi has 12 years of investment research experience in top overseas financial institutions. He has managed global stock investment portfolios for multiple central banks, sovereign funds, government pension funds, insurance companies and other institutions. His investment experience can be said to be quite rich.

In 2018, he officially joined Huatai-PineBridge Fund as the company's deputy general manager. In 2020, he began to manage fund products. This was also his debut in A-share public funds.

Although we were lucky enough to encounter a bull market at the beginning and achieved good returns in 2020, risks soon followed.

The high-level fluctuations in 2021, coupled with the halving of yields in 2022-2023, not only wiped out the previous profits, but also trapped many investors who did not have time to withdraw.

(Source: Source: Choice data; Li Xiaoxi Fund Manager Performance Index A)

In this battlefield where performance was "cut in half", Li Xiaoxi fought and retreated at the same time. He began to resign from the funds he held in July 2022 until he successfully "got away unscathed" last week.

Overall, Li Xiaoxi's performance was quite poor, and the returns of the five funds he managed were all at the bottom of the market. According to the data, many funds suffered huge losses during his tenure, among which Huatai-PineBridge Quality Selected Mixed Fund (010415.OF) fell by more than 50%, and the largest Huatai-PineBridge Quality Leading Mixed Fund also fell by more than 44%.

No matter how terrible the performance is, fund managers can always "retire with honor", but it's just pitiful for those investors who took over at high prices. After all, someone has to pay for the terrible performance!

(Source: Choice data)

Note: Unless otherwise specified, the full text data is up to July 16, 2024.

Defeated and left! It is always the investors who pay the bill

Specifically, due to heavy investments in consumption and medicine, the three funds managed by Li Xiaoxi earlier all achieved outstanding performance in 2020.

(Table: Market Capitalization APP; Source: Choice Data)

For fund companies, this is clearly a good time to expand.

So the following year, Huatai-PineBridge issued two new funds for Li Xiaoxi, among which Huatai-PineBridge Quality Leading Mixed A (010608.OF, hereinafter referred to as "Quality Leading") was even sold out in one day, with a fundraising scale of up to 7.2 billion.

(Source: Choice data)

However, after attracting enough popularity, this fund has embarked on a path of no return - it fell by -18% in 2021, -40.6% in 2022, -11% in 2023, and continued to fall by -11% this year.

Our stock ranking of quality-leading funds is also at the back of the market.

(Source: Market Capitalization APP)

Faced with such performance, Huatai-PineBridge could not remain calm. So in September 2022, Li Xiaoxi officially resigned from "Quality Leading" and was replaced by fund manager Fang Wei. Since Fang Wei took over, he has not yet achieved a quarterly profit.

(Chart: Market Capitalization APP; Source: Choice Data)

After more than three years of decline, the share of quality leaders has dropped from the initial 7.2 billion copies to the latest (24Q1) 3.48 billion copies, a direct halving.

From the perspective of the holding structure, nearly 98% of the shares are held by ordinary investors, and institutions hold about 2%. As expected, the weak retail investors are always the ones who get hurt.

(Source: Choice data)

A fund management career full of slaps in the face

Li Xiaoxi once mentioned in an interview in 2020, "I don't rely on short-term fluctuations to beat the index, but accumulate little by little over the long term, so the volatility of my method will be much smaller, which can also be seen from the drawdown of my products. Therefore, if you invest in my products, you often have the opportunity to exit."

Looking back now, these words are so embarrassing.

Since Quality Leader stepped down in September 2020, we take Huatai-Prudential Quality Growth Mixed A (008528.OF, hereinafter referred to as "Quality Growth"), which has a longer management period, as an example.

First, quality growth underperforms the CSI 300 and performance benchmarks most of the time, not to mention beating the index.

(Source: Choice data)

Secondly, the turnover rate of quality growth is very high, which has basically remained above 600% since 2021, and even exceeded 800% in the first half of last year. This is also clearly reflected in its heavily-weighted stocks, that is, the stock positions are adjusted and the stock exchanges are relatively frequent.

(Source: Tiantian Fund Network)

As for volatility, not to mention it, Choice data shows that the annualized volatility during Li Xiaoxi's tenure at Quality Growth was 26.8%, far higher than the 22.8% of similar companies.

At the same time, behind the big fluctuations are big pullbacks.

The maximum drawdown of quality growth is as high as 61%, which is outrageous. So instead of saying "there are many opportunities to leave", it is better to say "there are many opportunities to cut losses"?

(Source: ifind data)

I don't know whether the fund manager has forgotten his original intention or he is not used to investing in the A-share market. But this undoubtedly tells investors not to blindly believe in the fund manager's glamorous past.

The past does not represent the future, because these are two completely different concepts.

Disclaimer:This report (article) is an independent third-party research based on the public company attributes of listed companies and the information disclosed by listed companies in accordance with their legal obligations (including but not limited to interim announcements, regular reports and official interactive platforms, etc.). Market Capitalization strives to be objective and fair in the content and views contained in the report (article), but does not guarantee its accuracy, completeness, timeliness, etc. The information or opinions expressed in this report (article) do not constitute any investment advice, and Market Capitalization shall not bear any responsibility for any actions taken as a result of using this report.

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