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On July 30, Bosera Fund announced that Chen Pengyang resigned from Bosera Value Select Holding Period Mixed Fund and Bosera Growth Select Flexible Allocation Mixed Fund due to job transfer. This also became the fourth fund that Chen Pengyang resigned from this year.

As of now, Chen Pengyang still manages four funds, but the total scale of management is less than 7 billion yuan, which is a decrease of more than 70% compared with the peak of 22.152 billion yuan.

With star fund managers frequently leaving the market, will Chen Pengyang make any changes? This is something worth paying attention to.

The investment strength is definitely not bad

Chen Pengyang has always adhered to the growth strategy based on the GARP concept, focusing on matching valuation with growth, which can be summarized as "one low and three highs". "One low" refers to low valuation, and "three highs" emphasizes finding high-quality growth in high-prosperity tracks and holding stocks with relatively high concentration.

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Is he a disciple of Peter Lynch? Interpreting the practical application of GARP strategy by Chen Pengyang of Bosera Fund

To sum up, Chen Pengyang will strive to find targets whose valuations match their growth, and through the unique "DCF+" valuation model, he will explore the quality and fundamentals of companies from the bottom up, pursuing targets that can achieve a certain standard expected compound growth rate in the 3-5 year dimension, especially focusing on leading companies that can form a relatively advantageous competitive landscape in an industry.

From the perspective of performance, Chen Pengyang's investment strength is definitely not bad, and he can be ranked in the upper middle level among fund managers with assets under management of over 10 billion yuan.

Taking his representative product, Boshi Yulong, as an example, it has achieved a cumulative return of 89.67% during its nearly nine-year tenure, ranking 79/598 among flexible allocation products. At the same time, in the past eight natural years, only in 2022 did it slightly underperform the CSI 300 Index.

However, Chen Pengyang's performance this year has been somewhat abnormal. So far, Bosera Yulon has underperformed the 300 Index by more than 13%. If there is no more matching market conditions in the second half of the year, it will most likely underperform the CSI 300 by a large margin, which is an embarrassing record for him.

As for the specific reasons for Chen Pengyang’s losses this year, further analysis may be needed after the semi-annual report data comes out. After all, the performance of the heavily invested stocks was average.

Is it taking the blame for poor performance?

The author has noticed that many people online have criticized Chen Pengyang for exaggerating the losses of products he is managing or has resigned from. There are both subjective and objective reasons for this, and the responsibility cannot be entirely placed on Chen Pengyang.

1. Take the blame for someone else?

For example, the Bose Value Select Holding Period Mixed Fund, this product lost nearly 50% during Chen Pengyang's tenure.

Bosera Value Selection Holding Period Mixed Fund was issued by Wang Jun, the former star fund manager of Bosera Fund, on July 29, 2020.

In January 2021, Wang Jun suddenly chose to resign and stepped down from 6 products at once.

Wang Jun demonstrated the "timing" ability of an excellent fund manager. His resignation happened to be at the top of the last bull market, but his graceful turn "harmed" the brothers who took over.

From January 20, 2021 to today, the CSI 300 Index has fallen by as much as 37.63%. Three of the funds that Wang Jun resigned from have significantly outperformed the CSI 300 Index, but three have also suffered losses of as much as 47%, including the Bose Value Select Holding Period Mixed Fund taken over by Chen Pengyang.

In 2021, under the sole management of Chen Pengyang, Bose Value Selection Holding Period Mixed Fund achieved a return of 18.05%, which is even better than other products he managed alone.

The real problem occurred in 2022. In the first quarter of 2022, as the market environment began to deteriorate, Chen Pengyang's managed products generally suffered losses of around 20%.

But Chen Pengyang subsequently stabilized his position and did not allow the losses of the separately managed products to expand further.

On February 23, 2022, Bosera Value Select Holding Period Mixed Fund hired fund manager Guo Kangbin.

Subsequently, data such as the holding period mixed heavy holdings and turnover rate of Bose Value Selection showed significant changes, which may mean that Guo Kangbin has a greater say in the management process.

But unfortunately, this young fund manager failed to bring excess returns to the product, and the product lost 46.11% after he participated in the management.

In addition, on August 4, 2022, Guo Kangbin also participated in the management of Chen Pengyang's Bose Growth Preferred Flexible Allocation Mixed Fund. Thanks to Guo Kangbin's "efforts", the product subsequently experienced a significant pullback.

We need to remind everyone that this time Chen Pengyang is resigning from the Bose Value Select Holding Period Mixed Fund and the Bose Growth Select Flexible Allocation Mixed Fund. The two products will continue to be managed by Guo Kangbin. We hope that the holders will be well in the future.

It is also worth mentioning that in September 2022, Bosera Fund issued Bosera Times Selected Hybrid for Guo Kangbin. The product was barely established after the fundraising period was extended several times and it was backed by large funds. However, Bosera Times Selected Hybrid survived for less than 4 months and was hastily liquidated, with a loss of 9% during the period.

2. Product launch at a high price

On January 20, 2021, Chen Pengyang took over the Bose Value Selection Holding Period Mixed Fund for Wang Jun.

Just one day later, on January 21, 2021, Chen Pengyang's Bose Growth Leading Mixed Fund was established.

As of now, the CSI 300 Index has fallen by 37.15%, and Bose Growth Leading Mixed Fund has underperformed the CSI 300 Index by less than 1 point.

In addition, Bose Yulon Mixed A, which is managed solely by Chen Pengyang, fell 33.19% during the same period, outperforming the CSI 300 Index by about 4%.

How to put it, in such a market environment, Chen Pengyang’s performance can be said to be not good enough, or not quite matching the market style, but it is certainly not “bad”.