Following the controversy involving a prominent financial influencer's promotion at the start of the year, the Debon Stable Growth Flexible Allocation Mixed Fund continues to struggle. As of the end of the fourth quarter of 2025, the fund's C-share class had an asset size of 965 million yuan. Combined with the A-share class size of 46 million yuan, the total size was approximately 1.011 billion yuan. First-quarter size data has not yet been updated.
Since the influencer's credibility crisis in mid-January, the fund has experienced highly volatile performance. On January 9 and 12, the A-share class recorded single-day returns as high as 9.24% and 8.32% respectively, attracting significant attention. However, this was followed by a consecutive decline from January 15 to 21, with the largest single-day drop reaching 1.54%. Volatility persisted into February, with a sharp decline of 3.39% on February 2, a rebound of 3.82% on February 3, and another consecutive decline from February 4 to 6. This roller-coaster trend has resulted in losses for investors who bought in during the peak.
As of April 1, the net asset value per unit for the Debon Stable Growth A-share class was 1.0075 yuan, reflecting a decline of 15.79% over the past month. Its ranking among peer funds was 2291 out of 2330, placing it at the very bottom. Over a longer three-year period, the fund has accumulated a loss of 20.76%.
Further concerns arise from the poor performance of other products managed by the fund's portfolio managers, Lei Tao and Lu Yang. For instance, the Debon Technology Innovation One-Year Closed A-share fund managed by Lei Tao has fallen 6.74% year-to-date. While it saw a significant gain of 66.82% over the past year, its three-year return is only 8.14%, indicating extreme volatility. The Debon High-End Equipment A-share fund managed by Lu Yang has dropped 18.09% year-to-date. Having been established just over a year ago, its cumulative return stands at a mere 1.19%, with an annualized return of only 1.13%, ranking it among the lowest-performing products under Debon Fund. Additionally, the Debon Fuxin A-share fund, also managed by Lei Tao, has declined 6.34% year-to-date and has lost over 10% in the past three years. The products managed by these two managers generally exhibit high volatility, with sharp rises when specific sectors perform well but equally severe drawdowns when trends reverse.
Regarding portfolio structure, Lei Tao and Lu Yang maintain a strong focus on the AI application sector. As of the end of 2025, the top ten holdings of the Debon Stable Growth fund were concentrated entirely in the computer and media industries, with computer stocks accounting for 81.15% and media stocks for 18.85%. Key holdings such as Hehe Information, Zhuoyi Information, Wanxing Technology, and Shuiyou Co., Ltd. remain core positions, with the top five holdings collectively representing over 35% of the portfolio. This highly concentrated investment strategy can lead to explosive returns during favorable AI market conditions but also results in significant net asset value drawdowns during sector adjustments.
The fund released its annual report on March 31. In the report, the portfolio managers stated that while the AI application sector continues to experience fluctuations, positive industry factors are accumulating, and market attention has increased. They highlighted the positive reception of domestic and international models like Gemini, Claude, Minimax, and GLM, as well as efforts by companies like Meta and Tencent to integrate AI into their ecosystems despite having weaker foundational models. They also noted the emergence of specialized AI products like Openclaw. The managers believe that innovation and entrepreneurship in AI products represent a compelling choice in the current era. They argue that with decreasing computing costs, improving model capabilities, and maturing scenario-based products, AI applications are becoming a critical variable in industrial trends. Market narratives are shifting from theories like "large models will dominate everything" or "giants will take all" towards new perspectives such as "AI applications creating wealth" and "focusing on Chinese AI applications." They suggest that密集释放加上中长期叙事逻辑的边际变化催化剂的密集释放，加上中长期叙事逻辑的边际变化，has helped rebalance the previously depleted筹码结构, leading them to be very optimistic about investment opportunities in AI applications for the full year.
Overall, the Debon Stable Growth Flexible Allocation Mixed Fund is in a challenging position. Its asset size has normalized after a rapid increase, but its net asset value has not recovered. While the portfolio managers remain optimistic about the AI sector, investor confidence has been severely damaged. Although its three-month ranking has improved to an excellent level, its performance over the past year remains significantly worse than the peer average. The widespread losses seen in other products managed by the same managers undoubtedly raise further questions about their investment capabilities.
Comments