Billion-Yuan Private Fund Veteran Liang Hong Makes Major Statement: His Private Fund Has Retreated 20% From June High, Many Tech Stocks Are Already Very Cheap

Renowned founder of a billion-yuan private fund, Liang Hong, has released his latest weekly report.

His private fund has retreated 20% from its June high.

This week (including the National Day holiday), most funds are expected to see net asset values decline by more than 2%, and the fund has retreated more than 20% from its highest point in June.

Position changes: He cleared out U.S. stock memory chip holdings and some other small U.S. stock positions, while retaining a 20% position in wafer manufacturing. At the same time, he once again added Hang Seng Tech internet stocks, wafer manufacturing, and A-share tech stocks that he believes have reasonable valuations and substantial upside potential.

One phenomenon: Over the past two months, AH tech beta has been very poor, while some U.S. tech leaders have hit record highs, and the only U.S. stock he held also hit a new high.

After regulatory policy adjustments, U.S. individual stocks can only be sold, not bought. He holds only one heavily weighted stock, which is the one with the highest certainty, and it has also hit a new high, while the same company domestically hit a new low.

Foreign new high, domestic new low 鈥?what is the reason? Liang Hong believes it is not due to fundamentals, but rather capital flow reasons. For example, certain insurance asset management giants bought a lot of tech stocks at high levels in July, but made significant position reductions and stop-losses in late September. This kind of large institution buying high and selling low is truly puzzling.

Many tech stocks are already very cheap. Liang Hong believes that initially many domestic tech stocks, especially A-share tech stocks, had bubbles, but now many good companies have already become cheap, and Hong Kong stocks are even more so.

Fund net asset value performance is poor, but personal confidence is abundant. First, fundamentals are very good. Second, picking stocks that are increasingly cheap also means greater upside potential. Companies that are cheap and have good certainty in the AH markets will have very large future upside.

Many domestic funds are hiding in large banks. Liang Hong stated 鈥?I will not do that.鈥?He will stick to his views. If the fund continues to decline afterward, they will conduct another round of fund self-purchases...