As can be seen from the report submitted to the US Securities Regulatory Commission by Qiao Shui fund, in the second quarter of this year, qiaoshui increased its holdings of Chinese technology stocks such as Ali, pinduoduo and NetEase. Among the top 10 heavy positions in the portfolio, two are related to Chinas ETFs. In September this year, qiaoshui registered the second private equity investment fund in China.
Dalio: Chinas market is undervalued
As an international investor, I have to compare different markets to make investment decisions. China has been an exciting target for the past 50 years. Take the development of high-tech as an example, there are only two countries in the world, namely, the United States and China, Or trying to discover entrepreneurship, China and the United States are the best choices.
Therefore, when you compare the relative market value and advantages of the US and China markets, we can conclude that the United States is over invested and China is undervalued. However, this situation is changing because Chinas market is becoming more and more open, the internationalization of the RMB is accelerated, and the liquidity and capital structure are also improved. Therefore, China will naturally attract more capital. This theory is also applicable to other countries, because the alternation of the old and the new is the historical law, Dario continued to give examples. the attractiveness of Chinas market is reflected in the fact that the yield of Chinas national debt is higher than that of the United States, and the economic growth is faster than that of the United States. Entrepreneurship, social creativity, and newly listed enterprises are all favored. This also reflects that investors have increased the proportion of positions in Chinas major indexes.
Dalio is also optimistic about the RMB. At the 2020 Financial Street Forum Annual Meeting held on October 21, Dalio said that looking forward to the future, the U.S. debt and banknotes will reduce the value of the US dollar, weaken the US dollars position as a reserve currency, and Chinas currency and its position in the world economy will increase relative to that of the United States.
According to Dalio, through a study of the rise and fall of reserve currencies over the past 500 years, all the worlds leading currencies have the status of world reserve currencies and world financial centers. Chinas contribution to world GDP has been comparable to that of the United States, but the US dollar still accounts for the majority of reserve currencies. In other words, monetization will have to be carried out, and the Chinese market will be more attractive when nominal and real interest rates are equal to or lower than zero. If China can adhere to the current open measures, the status of the RMB as a reserve currency will be significantly improved.
What Chinese assets does bridge water fund look for
Bridge water fund is the largest and most profitable hedge fund in the world. Dario, the leader of qiaoshui, has successfully predicted the great changes in the global economy and market for many times. The most famous one is that he successfully predicted the financial crisis in 2008.
In an interview recently, Dalio said that qiaoshui China fund has performed well, with a year to date return of 25%, because we have adopted an all-weather trading strategy and can overcome time and space. In the past 20 years, only one year of qiaoshuis investment failed, that is, this years epidemic suddenly caught us off guard. Qiaoshui (China) Investment Management Co., Ltd. filed qiaoshui all-weather enhanced China private equity investment fund No. 1 on October 17, 2018, which is the first Chinese private equity securities investment fund established by qiaoshui fund. After two years, Bridgewater fund launched its star asset allocation strategy all-weather private equity fund in China again. At the end of September this year, qiaoshui registered the second China private equity investment fund, qiaoshui all-weather enhanced China private equity investment fund No.2.
It is reported that the all-weather asset allocation strategy takes risk parity as the basic theory, and divides the economic environment into four categories, namely, the period of economic rise, the period of economic decline, the period of inflation rise and the period of decline of inflation. Based on the diversification of risks, it seeks to produce higher and more stable investment returns. Dalio once introduced that the trading strategy is that in the portfolio, stocks, bonds, commodities and other assets occupy an appropriate weight, and its advantage is low risk and high return. If the balance of the portfolio can be achieved, the return will not be reduced and the volatility will be reduced. On this basis, it will take some tactical deviations based on the original views on the investment target. We apply this rule to China. In addition, we have set up a team to conduct targeted stock selection and evaluation, which is qiaoshuis China strategy. Dalio stressed.
Qiaoshui No.1, an all-weather enhanced China private equity investment fund issued two years ago, has not publicly disclosed its performance. According to the performance of qiaoshuis fund product all day China, it has withstood two important periods: the fluctuation of Chinas stock market in 2015 and the downward trend of Chinas economic growth and international trade friction in 2017-2018. All day Chinese earnings fell 9.1% and 5.5% when the Chinese stock market fell - 42.6% and - 31.7%.
According to the latest position disclosed by bridge water fund, in August this year, bridge water fund submitted its 13F report to the US Securities and Futures Commission (SEC). According to the quarterly report submitted by Qiao Shui, Alibaba was ranked as the sixth largest heavy position in US stocks of bridge water fund, with an increase of 241%, with a market value of US $205 million. Qiaoshui has also significantly increased its positions in two Chinese ETFs, namely, ASUS China ETF (ranked No. 7) and ASUS MSCI China Index ETF (No. 8), with their positions increased by 717% and 486% respectively.
In this report, qiaoshui has also increased its holdings in a number of China capital stocks: qiaoshui has increased its holdings in Jingdonguff08 JD.US uff09, increase by 250%; Netease NTES.US uff09, increase of 251%; pinduoduouff08 PDD.US uff09, increased by 432%; Baiduuff08 BIDU.US uff09, with an increase of 251%; taluff08 TAL.US uff09, increasing by 309%; New Orientaluff08 EDU.US uff09, with an increase of 276%uff08 ZTO.US uff09, with an increase of 894%; Yum! Chinauff08 YUMC.US uff09, the increase range of 252%; Ctripuff08 TCOM.US uff09, increasing by 349%uff08 NIO.US uff09The increase was 1028%. In addition, qiaoshui also Jiancang Baishi groupuff08 BEST.US uff09He Huyauff08 HUYA.US )u3002 Source: editor in charge of E Company: Zhong Qiming_ NF5619
In this report, qiaoshui has also increased its holdings in a number of China capital stocks: qiaoshui has increased its holdings in Jingdonguff08 JD.US uff09, increase by 250%; Netease NTES.US uff09, increase of 251%; pinduoduouff08 PDD.US uff09, increased by 432%; Baiduuff08 BIDU.US uff09, with an increase of 251%; taluff08 TAL.US uff09, increasing by 309%; New Orientaluff08 EDU.US uff09, with an increase of 276%uff08 ZTO.US uff09, with an increase of 894%; Yum! Chinauff08 YUMC.US uff09, the increase range of 252%; Ctripuff08 TCOM.US uff09, increasing by 349%uff08 NIO.US uff09The increase was 1028%. In addition, qiaoshui also Jiancang Baishi groupuff08 BEST.US uff09He Huyauff08 HUYA.US )u3002