001230 is the stock code of Penghua Pharmaceutical Technology, and the reason for the heavy fall is due to the fund contract requirement of not less than 80% position on the one hand, and on the other hand, because of the fund manager's rapid establishment of a position and unwillingness to do the timing, the loss is the interests of investors.
According to the fund net value breakdown data can be seen, the fund began to build a position on June 5, the net value of the unit of 1.0010 yuan; June 12, the fund's net value of 1.0340 yuan, a week increase of 3.3%; June 19, the net value of the unit steeply fell to 0.8690 yuan, a weekly drop of 15.96%, the week the SSE index fell 13.32 percent.
Clearly, the fund built up its position very quickly and had already topped out before the selloff, so much so that the weekly drop in NAV outpaced the Sensex.
Over the next few weeks, the fund maintained a high positive correlation with the Sensex. for the week of July 3, the Sensex was down 12.07%, and Penghua MedTech plunged 15.73%. Apparently, the fund didn't reduce its position and still maintains a top allocation.
The week of July 10, the SSE index rose 5.18 percent, and the fund remained down 8.86 percent, with the net value of units falling to 0.5860 yuan.
Build a position quickly, adjust the position slowly, or an important reason for the loss of the fund. The fund manager is Liang Dongdong, who has 6 years of experience in the securities industry, joined Penghua Fund in October 2012 as a senior researcher in the research department, engaging in industry research, and has served as the fund manager of Penghua's healthcare equity fund since September 2014 to date.
Expanded Information:
Penghua Healthcare was founded on Sept. 23, 2014, with a net value of $1.012 as of Sept. 15, and was previously highly sought after by the market. However, from June 15 to Sept. 15, Penghua PharmaTech and Penghua Healthcare fell similarly, 57.16 percent and 58.49 percent, respectively.
It's worth noting that the Penghua Healthcare fund is also subject to a high position limit as stipulated in the fund contract, with a portfolio ratio of 80% to 95% of the fund's assets in equities; and no less than 80% of the non-cash fund's assets invested in stocks issued by companies listed in the healthcare industry.
For its own poor performance, Liang Dongdong frankly admitted in Penghua health care half-yearly report:
"The first half of the A-share has experienced a rare roller-coaster market, the first half of the Internet + and the Belt and Road, the A-share market out of the unprecedented bull market. But into the second quarter, the market stormed up and down, the degree of intensity exceeded everyone's expectations, especially in late June due to deleveraging triggered by the adjustment led to serious losses of funds in the field, triggering a drastic adjustment.
Healthcare was able to capitalize on the market's hotspots and made good gains during the upswing. But its performance was mediocre on the downside, and although the manager did take some measures, including lowering positions and allocating to blue-chip stocks, the effect was not obvious because the fund's covenant stipulates high positions."
It's worth noting that the reason for the poor performance of the two funds managed by Liang Dongdong has been known for some time. He said in an interview with Zhonglu Fund on July 10, for the second half of the market, "from the current government attitude, the determination to save the market is very big, the policy bottom is in sight, the next into the bottom of the shock, part of the high-quality stocks can go independent market, so you can be in the right time to build a position at a time."
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