On Friday, Mr. Feng responded to the rumors that Mr. Liu, the chief executive of the companys equity fund, was approved by the company. After the companys announcement in April, Feng Liu noticed that the market paid too much attention to the stock and the great enthusiasm generated by improper Association, which did not conform to his original investment intention. In addition, Feng Liu believes that the stocks main investment catalytic point of the new game has greater uncertainty. In an exclusive interview with the media in May, he specially reminded investors not to copy homework..
Afterwards, investors did not listen to Feng Lius reminder.
Some shareholders said after the relevant rumors appeared last week that it was because of Feng Lius operation that they bought shares of a game company. In April, the companys announcement showed that the funds managed by Feng Liu were allocated some shares through fixed increase. By the end of October, when the company disclosed its third quarter report, Feng Lius fund did not appear in the list of the companys top ten circulating shareholders, causing some shareholders to exclaim, Feng Liu has run away! Earlier, the rush of investors began to panic to sell shares of the game company.
There are risks in copy operation. In this regard, the industry explained that the important reason is that the public disclosure of information may be incomplete. For example, if we only speculate on Feng Lius view of the company based on whether the fund managed by him appears in the list of top ten shareholders or circulating shareholders, it is inevitable to make mistakes.
Zhu Kejun explained at the media communication meeting that Feng Liu found that the new games of the above-mentioned game companies did not perform as expected after they went online in early July, and the stock prices began to decline gradually in early July. Therefore, Feng Liu decided to sell the shares gradually after the block and fixed increase shares were unlocked in the middle and late July, and the whole selling process lasted several months.
The information disclosed by listed companies cannot contain such information. According to industry insiders, private fund investment managers have no obligation to disclose specific operations. In fact, most of the compliance departments of private equity institutions do not allow fund managers to disclose specific operations. In addition, Zhu Kejun said that the capital scale managed by Feng Liu was large. Even if his fund appears in the list of the top ten shareholders (circulating shareholders) of a listed company, it does not necessarily mean that the company is Feng Lius favorite investment, and the proportion of relevant funds in his portfolio may still be low.
Once there are too many copy operations, it may also cause herding, and then increase the volatility of stock prices, thus affecting the fund managers own investment. The market fluctuation caused by this copy operation is only a ripple of fund managers scale effect, and the impact of scale on fund managers is multifaceted.
Management ability determines scale ceiling
Asked how to view the relationship between scale and investment performance, a private equity tycoon with a management scale of tens of billion yuan explained: suppose a private equity firm, the average annual return rate of its products is 15%. If the annual net capital inflow is 10% of the scale. Under the dual influence of net fund growth and net capital inflow, the size of the company has increased by 25% every year, and the companys size has doubled in three years. If it is a private equity organization with a management scale of 100 billion yuan, according to this development rate, the scale will reach 200 billion yuan in three years, and the astonishing 400 billion yuan in three years.
The private equity magnate admitted that, as far as his private placement is concerned, if the scale expands at a similar speed, the management ability will soon be in short supply. Define your own scale ceiling and push it backwards to know when you should start controlling scale. He said that there is a ceiling of scale in the active stock selection strategy, which is relatively clear. Among the global hedge funds, the size of the hedge funds with active stock selection strategy is maintained at around us $30 billion to US $40 billion. The main investment market of these hedge funds is still in the US market with very good market liquidity.
The size of the $32.1 billion hedge fund managed by Marshall Warwick is also the latest evidence of the size of the global hedge fund. The management scale of these two institutions has been maintained at about 30-40 billion US dollars all year round, ranking among the top of global equity strategic hedge funds.
According to the above-mentioned big mans statement, if the organization wants to maintain the existing performance level, the management scale should not be too large. That is to say, when the scale is too large, the performance of private funds tends to decline. In this regard, the big man further explained that, generally speaking, the institutional research capacity is stable within a certain period of time. For example, an organizations research covers 100 companies with a market value of more than 100 billion yuan in the A-share market. If five companies are selected from these 100 companies, these five companies may create very considerable excess returns for it on the premise of excellent institutional research ability. If the scale of the organization has reached a certain degree, 20 or more companies must be selected from 100 companies to meet their own investment needs. There is a very limited amount of excess returns for investors in the market. As the agency puts more companies in its portfolio, the overall level of excess return may not be as high as when the portfolio focused on the five best companies.
Although the big man is talking about the size of institutional management, his analysis is also applicable to fund managers. The reporter of China Securities News learned in the interview that many fund managers also felt the worry of scale.
Large scale of fund management
At the same time, the scale of fund increases significantly.
In terms of private placement, according to the data of China Securities Investment Fund Industry Association, by the end of October 2020, there were 51196 private equity investment funds, with a scale of 3.68 trillion yuan, a significant increase from 2.45 trillion yuan at the end of 2019. With the improvement of the overall management scale, the number of 10 billion level private placement has increased significantly. According to the data of private placement network, by the end of 2019, the number of 10 billion level securities private placement institutions had just broken through 30. By the end of October 2020, the number of 10 billion level private placement institutions had reached 60, setting a new record.
In the past, private institutions often had to struggle for several years to reach the threshold of 10 billion level. In 2020, private placement will enter the 10 billion level club as soon as it is born.
Its not just private placement that is booming. After combing wind data, China Securities Journal found that by the end of the third quarter of this year, there were more than 120 active equity fund managers with a management scale of more than 10 billion yuan in public funds. Among them, there are 8 fund managers with a management scale of more than 50 billion yuan. Liu Gesong, the fund manager of GF, has the highest management scale, with a total fund management scale of 84.3 billion yuan. Zhang Kun of e fund and Mao Wei of Nanfang fund all have more than 70 billion yuan of management scale.
At the same time, some people smell the smell of risk. For example, a manager of a public fund in southern China said: there are many large-scale explosive funds in the market this year, and some of them even reach tens of billions. In the history of the development of public funds, this is rare. Whats more, the fund manager of some hot money funds does not manage the fund for a long time. When the market turns, it is likely that he will find it difficult to adjust quickly. The fund manager said he would devote more resources to expanding his ability circle and team expansion.
On the one hand, the management scale of investment managers not only depends on the personal level and style of investment managers, but also depends on the overall operation of the company. Before the closure of our companys products, it is not because our investment managers feel that the upper limit has been reached, but that the operation of the middle and back office cant keep up with the market With the change of environment and the continuous evolution of investment managers, the upper limit of management scale is also changing. In the past, people thought it was very difficult for fund managers to manage hundreds of millions or billions of dollars, but now it is very common for fund managers to manage tens of billions of funds.
It has become a common problem in the global asset management industry
In an interview recently, Marshall Webster, the founder of hedge fund, described the paradox of hedge fund size. for hedge funds, a certain scale is needed to survive, he said. However, when the scale is too large, it also becomes a limiting factor. The reason is that when the scale is too large, the trading will be worn out, and the influence of fund managers in the market may reverse the performance. Marshall Webster has become one of the largest hedge funds in Europe because we knew from the beginning that too large a fund might limit its development, and we often closed . From the companys point of view, frequent closure forces us to constantly innovate. After the closure, we must create new strategies to achieve profit growth. .
He believes that from the industry point of view, it is a common phenomenon that the scale of hedge funds is too large. As the scale increases, the returns of institutions tend to decline. Some institutions earnings have declined more slowly, which is good. Some fund managers scale to a certain extent, the income suddenly reduces. Moreover, the hedge fund industry is full of smart, conceited people.. After they had achieved excellent performance for a time, the capital came in admiration. When the scale is large to a certain extent, some people forget themselves and ignore the investment discipline and do what should not be done, leading to failure.
Zhu Kejun mentioned at the media communication meeting on Friday that as the person in charge of compliance, he was also thinking about how to guide investors, dont pay too much attention to the operation of its fund managers. He doesnt want to see investors hurt because of copying operations.. He also said that the fund raising scale of Feng Lius management has been controlled every month, and Gaoyi asset advocates performance first when there is a conflict between its scale and performance. In addition, it is not ruled out that the fund managed by Feng Liu is likely to be closed soon.
13.6 million ant battle matching fund holders can choose to withdraw from 95 fund managers purchase of 258 times within this year, with an amount of more than 3 billion yuan. Independent directors are no longer vases of securities fund practice, highlighting the independence of independent directors. Source: Ren Hui, editor in charge of China Securities Journal_ NBJ9607