Dark horse to capture the three core standards China Stable Growth Fund Manager Zhang to talk about

Category: Money tips Release Date: 2006-05-29

Source: China Securities Net

Dark horse to capture the three core standards - China Stable Growth Fund Manager stock-picking strategy Zhang Tan

China Stable Growth Fund as a "GM" the first single from the closed-end funds converted from Societe Generale, has aroused great concern to investors. Concentration of subscription in the Fund during an interview with fund manager Mr. Zhang Long. Of concern for investors, Zhang said, both closed-end funds or open-end funds, to fund managers, the important work is through securities investment to enable the Fund assets. Specifically to China Stable Growth Fund, its investment in the pursuit of goal is the continuing strong value of the Fund's assets, the Fund will be primarily through three core stock selection criteria, from the 1400 listed companies mining endogenous growth potential of a strong ability to invest in companies, namely, by capturing a "dark horse" to achieve the Fund's assets continue to add value. These three listed companies, stock selection criteria include growth potential, management level and corporate valuation.

Zhang believes that whether the growth potential of listed companies, mainly to see whether the ability of endogenous growth the company strong. Whether the ability of endogenous growth the company a strong need to judge the following aspects: First, the company's products or services, whether there is sufficient market potential; second is really too much to the company's competitors; 3 is the company's cost-control abilities; 4 -5 years, the company's three-year turnover could significantly increase; 5 in order to further increase sales revenue, the management have the determination and action to continue to develop new products or new processes; 6 in the foreseeable future, whether the company is only be able to rely on a large number of issued equity financing to sustain its growth and so on.

In addition, the potential of the company also has a very good management and high management level and so on. Factors, the listed company itself, the stock's valuation will determine the level of investment, margin of safety, reasonable valuation levels of investment would have an adequate safety margin, enabling the excess returns for investors.

Zhang said that his many years of investment experience and the formation of the accumulation of quantitative stock selection model, may be judged on the valuation level. The use of quantitative tools, from the tens of thousands of financial statements and financial indicators, with a number of successful models and conditions, objectively select the number of stock options, and then further and communicate with internal and external analysts, some companies to invest in the final selection . On the other hand, through the establishment of industries and individual stocks score sheet, according to the market dynamics of comparative valuation, even if the company is an excellent, if departure from the industry average stock price too much, there will be the risk of fall in share prices. Assisted quantitative method can also be combined daily to adjust.

When thinking about operation of the Fund, Zhang said that China Stable Growth Fund, through the implementation of active asset allocation, selection of investments in securities and other positive strategies, and strive to share China's rapid economic growth and performance of listed companies continued to grow earnings. In selecting stocks, the fund will be available for the company's operating management level, growth potential and business valuation for analysis of the three core, focusing on the ability to explore endogenous growth and strong potential of the industry leading companies or companies with Strategy Working Group, an industry estimate Value score table and the company's valuation of the table change, dynamic adjustment of industries and individual stocks, seeking maximum capital appreciation, while as much as possible to control and reduce risk.

It is understood that Zhang has the depth of research and heavy investment by the emergence of a number of dark horse stocks, Luzhou, Changyu, Wuliangye, Zhong Ke San Huan, Erie shares, Maotai, Shuanghui development, Nanning Sugar and other companies, gains have far exceeded the broader market for investors to obtain the ideal benefits.