Fuguo Core Selection A has plunged 33.97% since its launch on June 16, making it one of the worst-performing new funds of the year. The fund, which is managed by Fuguo Fund's "sentiment catcher" Wu Dongdong, has seen its net asset value drop to 0.6603 yuan as of August 5, 2026, with a maximum drawdown of 37.17% and an annualized volatility of 60.92%.
The fund's launch came at a time when the AI and new energy sectors were booming, following the success of Fuguo's earlier fund, Fuguo Core Power A, which had returned 25% by the end of the second quarter after heavy investments in technology stocks. This prompted Fuguo Fund to launch Fuguo Core Selection A with a similar strategy, attracting about 44 million yuan in subscriptions. However, the market quickly turned unfavorable, and the fund's unit price crashed from 1.0509 yuan on June 30 to 0.7761 yuan on July 17, a single-day loss of 21.81%.
Out of the 274 active equity funds launched this year, only 92 have achieved positive returns since their inception, with 25 funds dropping over 20% and 7 funds falling over 30%. Among the five worst-performing funds, Fuguo Core Selection A ranks third with a 33.97% loss. The fund's performance has been significantly worse than the broader market, with the CSI 300 Index falling only about 6% over the same period.
Wu Dongdong, who has 9 years of securities industry experience and 4 years of fund management experience, has been dubbed a "sentiment catcher" for his strong performance in 2025, when his three fund products all achieved net asset value growth rates of over 49%. His investment strategy centers on AI, focusing on areas such as liquid cooling, power supplies, and optical modules, as well as domestic robotics and commercial aerospace. However, the recent performance of his funds has raised concerns about their risk profile.
As of June 30, the top ten holdings of the funds managed by Wu Dongdong accounted for 62.98% of their net asset value, concentrated in technology stocks such as Jiaocheng Chaosheng, Siquan New Materials, Hangzhou Colin, Jiebang Technology, and Songlin Technology. Many of these stocks have experienced significant declines in the past three months, with Jiebang Technology falling 50.69%, Weiteng Electric dropping 49.19%, and Siquan New Materials declining 43.10%.
The five funds managed by Wu Dongdong have an aggregate size of about 2.438 billion yuan, with all but one fund showing declines of 19% to 20% in the past three months, placing them in the bottom 10% of their peers. The risk data for Wu Dongdong's products shows high volatility, with Fuguo Core Advantage A having an annualized volatility of 32.04% and a maximum drawdown of 38.77%, while Fuguo Quality Growth 6-Month Holding A has a volatility of 31.04% and a drawdown of 38.19%. These figures contradict the earlier market perception of Wu Dongdong as a manager focused on balanced allocation and risk diversification.
The MACD golden cross signal has formed, and these stocks are showing strong upward momentum.
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