As we step into 2026, the A-share market has started the year with a strong rally, and the pharmaceutical sector, which had been adjusting for some time, is regaining momentum. By January 9th, the Pharmaceutical & Biological Index (801150.SI) had already surged by 7.81% in just the first 5 trading days of the year. Among the standout performers is the E Fund Healthcare Fund, which saw its net value skyrocket by 16.85% during the same period, significantly outpacing the industry index. (Data: Choice, as of Jan 9, 2026) Since current fund manager Yang Zhenxiao began managing the E Fund Healthcare Fund in August 2016, his tenure has delivered a cumulative return of 237.49%, with an annualized return of 13.81%, showcasing strong long-term performance. Even more notably, according to Liulicaitoubao statistics, the fund has outperformed the Pharmaceutical & Biological Index (801150.SI) for 9 consecutive full years since 2017, consistently generating alpha. For a sector-specific fund, consistently beating its benchmark index is no small feat and truly demonstrates the value added by the fund manager.
Overall, Yang Zhenxiao's sustained market-leading performance stems from a clear investment methodology: One hand combines meso-level analysis with micro-level insights to clarify the position and trends within the industry cycle; The other hand employs a bottom-up, balanced allocation approach to pursue long-term alpha; these two engines drive performance and are both indispensable. 1. Relatively long holding periods High equity allocation,偏向长期主义的风格 Yang Zhenxiao's investment framework is built upon his profound professional background. Information shows that after earning a Ph.D. from Peking Union Medical College, he joined E Fund in 2011, deeply immersing himself in pharmaceutical research, and currently manages 3 funds including the E Fund Healthcare Fund. His investment style can be described as long-term oriented, with a relatively moderate turnover rate that is below the industry average, and a stable equity allocation. Taking the E Fund Healthcare Industry Fund, which he has managed the longest, as an example, the fund has mostly maintained a high equity allocation above 92%, only reducing it to lower levels during the bear markets of 2021 and 2022. The concentration of the top ten holdings is relatively moderate, fluctuating with market conditions, but generally moving within a range of 40% to 60%. Accompanying the high equity allocation is a relatively low turnover rate. Within his portfolio, he has held several companies for over 17 quarters, and with significant weightings. For instance, he began building a position in a leading pharmaceutical company early in his tenure and has held it steadfastly for nearly 8 years, only briefly exiting the top ten holdings in 2022, fully capturing the long-term growth value of this pharmaceutical leader. Behind such long-term holdings lies the need for deep research capabilities to provide the conviction required to translate in-depth research into sustained alpha. Yang Zhenxiao has previously stated that this long-term holding approach helps "avoid excessive trading and missing out on systematic upward opportunities in the industry." Furthermore, a style characterized by deep research and long-term holdings is a prerequisite for managing large amounts of capital.
2. Consistently generating alpha Keen perception of new industry trends In his specific investment approach, Yang firstly places great importance on researching the benchmark index, because he believes the pharmaceutical index itself is a very strong benchmark. As long as he can outperform the index, achieve alpha and relative returns, he can achieve absolute returns, and may even beat many all-market funds. In fact, over the long term, as of the end of 2025, the Pharmaceutical & Biological Index had gained 1090.57% over the past 20 years, far exceeding the 401.52% gain of the CSI 300 Index over the same period. This underpins his framework, which revolves around the pillar of "balanced allocation to achieve alpha," meaning he does not rigidly adhere to simple value or growth labels, but rather, through comprehensive comparisons, selects sub-sectors and individual stocks capable of outperforming the benchmark during the investment horizon. The effectiveness of this methodology has been proven through his historical operations, with the E Fund Healthcare Industry Fund outperforming the pharmaceutical index for 9 consecutive years being one example. Secondly, Yang Zhenxiao is also highly敏锐 regarding new trends and changes within the industry. For example, the innovative drug sector, which was highly popular in 2025, actually showed signs of activity several years prior, experiencing periodic rallies. At that time, astute fund managers in the market acted upon these signals, and Yang was among them; his fund made前瞻性布局, contributing to the fund's ability to deliver positive returns against the market trend that year. Fund regular reports show that as early as the second quarter of 2023, during the initial listing phase of a leading innovative drug company, Yang decisively included it in the top ten holdings of the E Fund Healthcare Fund. Reviewing the fund's complete holdings over recent years, he has essentially held the position in this company throughout, albeit with some tactical adjustments in between. From Q2 2023 to the end of 2025, the stock price of this innovative drug leader accumulated a gain of approximately 300%; it can be said the fund fully participated in this rally.
3. Combining meso and micro analysis Results are explainable, the process is trackable, and the future is predictable Yang Zhenxiao has stated that in recent years, he has increased the proportion of "top-down" analysis within his investment framework; forming a decision-making system that "combines top-down and bottom-up approaches, integrating meso and micro analysis"; in portfolio management, he pursues: explainable results, a trackable process, and a predictable future. He strives to first judge the medium-term direction of various sub-sectors within the industry. Once determined, he then uses a bottom-up, micro approach to select suitable companies for allocation within that direction. From a meso perspective, he segments the pharmaceutical industry into three major板块, and clearly outlines the current allocation priority: Serious medicine (including innovative drugs, medical devices, consumables, etc.) is currently the top choice. He believes the primary contradiction in this field has shifted from domestic "stock replacement" to global "increment开拓"; The specific direction is "innovation + globalization," and the industry is in an expansion phase from 1 to N, with strong directional certainty.
4. Bullish on innovative drug liquidity recovery Adjustments in quality assets present opportunities Towards the current market, Yang Zhenxiao exhibits a calm and pragmatic attitude. He believes domestic healthcare demand remains robust. Therefore, his strategy has always been "to pursue sustained and stable alpha under the premise of risk control," dynamically adjusting allocation ratios based on changes in the景气度 of various pharmaceutical sub-sectors, maintaining portfolio flexibility and foresight. Specifically looking at future opportunities, innovative drugs, which have undergone prolonged adjustments, have become a key focus for Yang Zhenxiao. He points out that the medium to long-term logic for the innovative drug industry remains solid, and short-term adjustments反而 provide more attractive opportunities to allocate to quality assets. Simultaneously, many brokerages also believe that the valuation of Hong Kong-listed innovative drug stocks remains absolutely attractive compared to global peers. They are optimistic about a liquidity recovery for innovative drugs and believe multiple catalysts could boost the sector's upward trend. For example, a Huatai Securities research report released on January 7th noted that the trading volume of Hong Kong-listed innovative drugs saw a sharp contraction in November-December 2025, down 90% from its peak; it accounted for 5% of the main board turnover in Hong Kong, also halved from the peak of 10.5%. Southbound capital has seen almost no net inflows since last October. From a fundamental perspective, the trend of innovative drugs going global remains unchanged, BD transactions continue to progress, and the market is entering a period dense with catalysts. Huatai Securities believes the liquidity recovery since the beginning of 2026 is expected to boost the entire sector's beta and recommends increasing allocation weights. E Fund's newly launched E Fund Hong Kong Stock Connect Healthcare Mixed Fund (A-share 026195, C-share 026196) also reflects some optimism regarding subsequent opportunities in Hong Kong-listed healthcare; This fund, to be managed by Yang Zhenxiao, will focus on investing in Hong Kong Stock Connect healthcare stocks, aiming to leverage the unique advantage of the Hong Kong market in aggregating global biotech companies to more directly capture the dividends from the globalization of China's pharmaceutical innovation. Long-term, after experiencing impacts from volume-based procurement, valuation reshuffling, and structural differentiation, investment in the pharmaceutical sector is shifting towards more specialized and细分 fields, placing higher demands on funds' investment research systems. Against this backdrop, fund managers like Yang Zhenxiao, who possess deep research backgrounds and mature methodologies, are backed by a leading platform like E Fund, and have been proven by the market to consistently create alpha, hold a certain degree of scarcity. Meanwhile, Choice data shows that Yang Zhenxiao currently manages 3 funds, with total assets under management of approximately RMB 10 billion as of the end of Q3 2025. Considering market capacity and the fund manager's investment style, this scale is far from exceeding his capacity radius. Whether from the expectation of a renewed爆发 in innovative drugs post-adjustment, or the fund manager's own capabilities, allocating to Hong Kong-listed healthcare at the current juncture might be an appropriate choice.
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