The Ruiyuan Growth Value Mixed Fund, managed by Fu Pengbo and Zhu Lin, has released its second-quarter report for 2026.
As of the end of Q2 2026, the fund's net asset value stood at 22.201 billion yuan, an increase of 4.045 billion yuan from the 18.156 billion yuan recorded at the end of the first quarter.
By the reporting period's close, the net asset value per share for the Ruiyuan Growth Value Mixed A fund was 2.7958 yuan, with a growth rate of 45.79% during the period, outperforming its benchmark return of 4.72%.
The net asset value per share for the Ruiyuan Growth Value Mixed C fund was 2.7157 yuan, achieving a growth rate of 45.65% against the same benchmark return of 4.72%.
The fund's top ten holdings, in order, are: Eoptolink Technology Inc.,Ltd. (300502.SZ), Suzhou Dongshan Precision Manufacturing Co.,Ltd. (002384.SZ), Luxshare Precision Industry Co.,Ltd. (002475.SZ), Victory Giant Technology(Huizhou) Co.,Ltd. (300476.SZ), Suzhou Maxwell Technologies Co.,Ltd. (300751.SZ), Focuslight Technologies Inc. (688167.SH), Contemporary Amperex Technology Co.,Ltd. (300750.SZ), Han'S Laser Technology Industry Group Co.,Ltd. (002008.SZ), Zhongji Innolight Co.,Ltd. (300308.SZ), and Hangzhou Greatstar Industrial Co.,Ltd. (002444.SZ).
The fund initiated a new position in Focuslight Technologies Inc., acquiring 4.5277 million shares, while reducing its holdings in Zhongji Innolight Co.,Ltd., Suzhou Dongshan Precision Manufacturing Co.,Ltd., Eoptolink Technology Inc.,Ltd., Contemporary Amperex Technology Co.,Ltd., Victory Giant Technology(Huizhou) Co.,Ltd., and Hangzhou Greatstar Industrial Co.,Ltd..
Positions in Han'S Laser Technology Industry Group Co.,Ltd. and Luxshare Precision Industry Co.,Ltd. received minor increases.
Key Portfolio Moves and Strategy
In their quarterly commentary, managers Fu Pengbo and Zhu Lin stated the fund maintained a high equity allocation in the second quarter, with the portfolio continuing to concentrate on high-growth sectors by investing in their leading companies.
Stocks in the PCB, semiconductor, and optical communication sectors, beneficiaries of the rapid AI development, remained core holdings.
However, the managers took profits by trimming positions in these stocks during the quarter's sharp rally.
A notable adjustment was increasing exposure to a company involved in high-power semiconductor lasers and micro-optics solutions, while reducing long-held positions in Hong Kong-listed internet technology firms.
This shift was primarily a response to the weak performance of the Hong Kong internet tech sector.
Hong Kong and A-Share Allocation Focus
The fund's overall exposure to Hong Kong stocks decreased significantly, resulting in a limited contribution to the net asset value.
The Hong Kong portfolio is now primarily focused on consumer and innovative biopharmaceutical stocks, which have shown generally subdued performance since Q2, though the biotech sub-sector has shown some signs of stabilization and recovery recently.
For A-shares, the fund capitalized on investment opportunities arising from the explosive growth of technology-driven industrial chains during the quarter.
While acknowledging that Hong Kong stocks are cheap on an overall valuation basis, the managers indicated no rush to increase allocation there.
Outlook and Forward Plans
"Entering the third quarter, it remains to be seen whether dividend and value stocks will gain market favor, if a better balance can be struck between high-tech and traditional sectors, and how the highly anticipated companies will perform following their listings on the STAR Market," Fu and Zhu commented.
They added that as listed companies begin releasing their 2026 interim reports, they will analyze the operational status of key holdings using this data.
The fund will continue seeking out companies at an inflection point in their growth cycles, employ valuation tools to assess long-term value, and make dynamic portfolio adjustments to navigate market volatility and strive to control drawdowns.
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