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.
According to Dalio, the United States is over invested while the Chinese market is undervalued. He explained that when a countrys economy ranked first and the currency became the global reserve currency, global investors naturally flocked to the countrys assets, which led to the establishment of financial centers and the accumulation of capital. Over time, it is inevitable to cause imbalance between investment volume and economic volume, and even allow a countrys debt to reach an unhealthy level. As a result, the market value of mature markets formed earlier is much higher than that of emerging markets.
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.
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.
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