Recent screenshots showing heavy losses in the net asset value of But Bin's A-share private funds have gone viral across community networks.
According to the screenshots, the Dongfang Harbor Hongyuan Phase 2 private fund has lost over 30% this year, with cumulative losses reaching 37%. It has fallen to become a "0.6 yuan fund," with excess losses of 16.5%. Looking at the net value curve, But Bin's fund was once up nearly 20% this year, but during the correction since July, it took a dramatic plunge, with drawdowns exceeding 50% during that period. Its scale shrank rapidly from 300 million yuan to just over 50 million yuan. But Bin's domestic funds are basically all like this, with "0.6 yuan funds" and "0.7 yuan funds" appearing frequently. The Hanyun series products also dropped by 30%, and their holdings are likely all AI computing power stocks centered on optical communications.
But Bin has long been regarded as a heavyweight in the private fund industry. His funds have consistently ranked at the forefront of the sector and have won the private fund annual championship multiple times. So why would the net value of But Bin's funds plunge by 31%? The reason is simple. But Bin's funds have always been primarily focused on U.S. stocks, and what the market sees are his U.S. stock position funds. As of now, his private funds (mainly holding U.S. stocks) have just turned negative, with most declines ranging between 0-5%. But this particular fund is his domestic private fund, mainly investing in A-shares and Hong Kong stocks. For example, although Dongfang Harbor Marathon Phase 2 has lost over 1% this year, its returns over the eight years since inception are still as high as three times.
Looking at recent data, due to closely tracking U.S. stocks and heavily holding Google, NVIDIA, SanDisk, Micron, and Intel, under the pressure of earnings misses, the net values of related funds have seen sharp pullbacks recently, plunging over 8% in the single week of October 16 and nearly 7% in the single week of October 30. For domestic private funds, But Bin's private fund net value has dropped by 31%. At that time, some investors questioned whether But Bin had cut losses at the very bottom. According to screenshots circulating online, one investor said: Changjiang Dongfang Harbor Phase 2 fell 35% in July, but only rebounded 7% during the first week of August when tech stocks staged a major rally, suggesting he cut losses at the very bottom and hoping he would match his words with actions.
But Bin once responded to the sharp drawdown in net value, saying that some private funds can only invest in A-shares and Hong Kong stocks and cannot allocate to core U.S. AI leaders, which is an inherent difference from other products and an objective long-standing limitation of channel-compliant products. In early May, when AI computing power stocks collectively surged, But Bin spoke out: In recent years, funds investing in A-share and Hong Kong stock markets have performed unsatisfactorily, but this year we have vigorously positioned in technology growth tracks such as AI computing power, optical communications, high-end manufacturing, and semiconductor domestic substitution. Hong Kong stocks have performed disappointingly, while A-shares are catching up.
In other words, But Bin probably entered optical communications-centered tech stocks in early May, most likely chasing highs. After a brief pulse-like rise in net value in May and June, net value has plummeted since July. If held until now, many of his heavily weighted stocks have retraced over 60%. Even if But Bin made some position adjustments, his overall holdings likely haven't changed much. On October 22, But Bin also responded: We are still sticking with the domestic AI industry chain; otherwise, our domestic funds that can only buy A-shares and Hong Kong stocks wouldn't have retraced. But now it seems that A-shares still require flexible handling of selling high and buying low. It's unclear whether But Bin actually did sell high and buy low.
On July 28, But Bin loudly declared that his bullets were all spent and that he had bought SK Hynix, specifically 2x leveraged SK Hynix. If held until now, the cost of 38 has dropped to only 21.8 Hong Kong dollars, representing a decline of 40% during that period. MACD golden cross signals have formed, and these stocks are rising well!
Comments