Newsletter summary
Text of news flash
[Yu Xiyang, investment manager of Xingzheng Global Fund: quantitative private equity products have withdrawn significantly after the Spring Festival, and risk exposure should be vigilant.] on May 5, Xingzheng Global Fund and Tencent News jointly organizedNodepositcasinorealmoneyThe 2024 Buffett shareholders' meeting, the China Investor Summit. At the meeting, Xing Zheng global fund investment manager Yu Xiyang pointed out that after the Spring Festival this year, the market quantitative private equity products encountered a significant decline. He further explained that statistics show that the correlation between market quantitative products and small-cap stocks is closely related to the rise in the index of small-cap and micro-caps, revealing that many quantitative funds are overinvesting in small-cap stocks. They are looking for bigger returns. However, this overinvestment has led to defects in the balance of market capitalization style in many hedging products.
Yu Xiyang stressed that, in theory, the stock portfolio should match the market index or futures market index, including effective hedging in industry and market capitalization style. However, in reality, many quantitative products are not fully hedged in terms of market capitalization style. As a result, when the style of microdisk stocks collapses, even if these products are hedged against super-large stocks, it is difficult to effectively avoid losses.
To this end, Yu Xiyang reminded investors and fund managers that when implementing quantitative investment strategies, they must pay close attention to the risk exposure of market capitalization style and take corresponding hedging measures. He stressed that this will help reduce the adverse effects of market fluctuations, thereby protecting the interests of investors.