The fourth quarter of 2024 sees a surge in the disclosure of public mutual fund reports, revealing the investment strategies of successful asset managersThrough the turbulent market conditions of the last quarter, many funds elected to maintain a robust portfolio while intensifying their investments in the technology growth sectorThis strategic shift emphasizes a commitment to aggressive investing, a trend that characterizes the behavior of numerous fund managers during periods of market volatility.

Fund managers generally responded to the market's fluctuations with a heightened focus on risk-taking, leading to an increase in asset allocation toward equity investmentsFor instance, as of the end of last year, the Ruiyuan Balanced Value Mixed fund, under the management of Zhao Feng, saw its equity investments account for 87.42% of its total assets, marking an increase of more than three percentage points since September of the previous year

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Similarly, the Wanjia Xianli Flexible Allocation Mixed fund, managed by Huang Hai, experienced a significant uptick in stock allocation, with equity investments rising from 85.11% to 92.47% of total assets by year-end.

By the end of 2024, the concentrated positioning of the Wanjia Xianli fund became evident, with its top ten holdings representing 80.35% of the fund's net value, a notable increase from 70.6% in the third quarterHuang Hai elaborated on their positioning strategy, indicating that the fund had progressively concentrated on low-debt, high-dividend, and high-cash-flow quality enterprises that they view favorably over the medium to long termSuch companies, characterized by monopolistic business models and stable operating cash flows, remain significantly undervalued in the current market landscape.

The trend of equity-heavy allocations is echoed across various other funds as well

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For instance, the Galaxy Innovation Growth Mixed, E Fund Blue Chip Select Mixed, and Yinhua Heart Selection Mixed have also surpassed a 90% allocation toward equities by the end of last year, showcasing a collective industry shift toward growth-oriented investments.

Furthermore, as indicated by the adjustments in their portfolios, several fund managers have notably increased their focus on the technology sectorTaking Chen Yifeng's management of the Anxin Value Selected Equity fund as an example, there was a clear enhancement in allocations toward sectors such as electrical equipment, electronics, and pharmaceuticals, while allocations to agricultural, food and beverage, and chemical sectors saw a decline.

The top holdings of the Anxin fund illustrated this shift, as new entries included companies like Zhongwei Company, Mindray Medical, and Stone Technology, which had not been among the top ten holdings as of September last year

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Similarly, Shen Ai Qian's Ping An Strategic Pioneer Mixed fund widened its investment in technology while scaling back on consumer and cyclical sectors, with companies such as SAIC Motor, Wolong Nuclear Material, and ZTE Corporation now making appearances in the fund's top ten holdings.

Long-time seasoned investors are also beginning to place greater emphasis on researching new technological fieldsFu Pengbo, a veteran at Ruiyuan Fund, noted an increased focus on emerging market trends since the beginning of 2024, concentrating efforts on topics like artificial intelligence, AR/VR, and smart automotive drivingThese cutting-edge sectors could significantly impact the global economy and reshape traditional industry paradigms, thus creating promising investment opportunities for the future.

In the context of future outlooks, Li Xiaoxing, the manager of Yinhua Heart Selection One-Year Holding Mixed Fund, has voiced an optimistic view

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He believes that the combination of various policy interventions will gradually yield positive results, fostering an environment where economic recovery expectations are being upliftedAs the fundamentals show signs of improvement, there is a potential for increased capital entering the equity markets by 2025.

As the calendar year comes to a close and a new one begins, fund managers are actively on the lookout for potential investment opportunities and are particularly keen on analyzing corporate performanceFu Pengbo mentioned that leads identified at the year's outset often translate into lucrative investment opportunities throughout the yearHe highlighted the need to assess a company's investment return rate, free cash flow per share, net profit growth, and the consistency of dividends from high-dividend companies when selecting stocks, particularly in light of the current market uncertainties.

Looking ahead to the first quarter of 2025, early disclosures of financial results from listed companies will provide investors with critical insights into market conditions

Such structural opportunities could easily emerge as the major investment themes of the upcoming yearFrom a long-term perspective, the performance of listed company stock prices will ultimately be dictated by corporate fundamentals—the overall earnings trendsIt is crucial to identify industry segments and companies that hold the potential for a performance rebound as 2025 approaches.

Yang Jinjing, the manager of the Jiasheng Schroders Trend Priority Mixed Fund, has observed that many niche industries are gradually clearing out, while certain companies' counter-cyclical investments are nearing fruitionThere are anticipations for the emergence of numerous star companies across various specialized sectors as we head into 2025. This positions the funds' strategies well in aligning with the evolving market dynamics and emerging trends, shaping their investment narratives for the upcoming year.