As 2025 began, the A-shares market witnessed notable fluctuations, with major indexes pulling back significantly over two consecutive trading daysMost sectors displayed a downward trend, consequently impacting actively managed equity products which experienced varying degrees of net asset value declines.

Nevertheless, amidst this market pressure, certain investment funds exhibited remarkable resilienceSurprisingly, some funds achieved positive returns, suggesting that their managers had effectively maneuvered their holdings in particular stocks, strategically adjusting their positions in response to the changing market landscape.

Observations indicate that certain funds may have altered their portfolios significantlyFor instance, on January 2, a fund named Qianhai Kaiyuan Jiaxin achieved an approximate 0.88% increase, ranking fourth among all actively managed equity products for that day

Other performing funds included those focused on gold, such as Qianhai Kaiyuan Gold Jewelry and Dongfang Cyclical Optimal Selection, alongside consumer theme products like Yongying Consumer Leading Smart Choice and Harvest New VoyageIt is noteworthy that if we look at Qianhai Kaiyuan Jiaxin’s position holdings at the end of the third quarter of the previous year, the performance of its heavily weighted stocks on January 2 alone would not have been sufficient to generate a positive returnThe top ten stocks held by the fund collectively witnessed an average decline of about 2.55%, with notable drops in stocks like Citic Securities and Yangjie Technology, which fell by 5.89% and 5%, respectivelySuch discrepancies lead to the inference that the fund manager must have executed significant trades ahead of the new year.

Qianhai Kaiyuan Jiaxin is not alone in this matterThe Dongfang Xingrui Trend Navigation fund, which has long maintained over 90% equity assets, recorded performances of -0.01% and 0.83% on January 2 and 3, despite the declining market trend

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Data analysis reveals that the only sectors performing satisfactorily during this period were resource themes like goldMoreover, considering Dongfang Xingrui's history of completely rotating its stock holdings, it can be hypothesized that its management may have shifted investments heavily towards resource sectors.

Smaller funds have exhibited an even quicker adjustment capacity in their portfoliosRecent statistics from the Securities Times indicated a correlation between significant valuation deviations and recent managerial changes or smaller fund sizesFor example, Qianhai Kaiyuan Jiaxin made headlines with an announcement regarding a change in management, appointing Wu Guoqing as the new fund manager effective December 31, 2024. The previous fund manager, Lu Qi, departed due to internal adjustments on the same date and has duly registered the change with the China Fund Industry Association.

It’s worth mentioning that Wu Guoqing has been outspoken about his optimistic outlook on gold and consumer stocks

He emphasizes the importance of several investment themes to watch in both the short and medium termsFirstly, dividend strategies remain attractive; as government bond yields decrease, companies with stable, high dividend payouts are garnering increased investor interestSecondly, he indicates that gold retains long-term investment potential; in light of declining dollar credibility, a pending easing of monetary policy, rising inflation expectations, and geopolitical risks, gold prices are anticipated to have upward momentumLastly, theme-based investments, particularly in sectors like low-altitude economy, humanoid robots, and electric vehicles, are regarded as being in a prime explosion year, indicating vast market potential.

Within consumer sectors, areas associated with aging populations, such as the healthcare industry, are expected to benefit from demographic trends, showing promising development prospects

Wu Guoqing noted that the fund will continue to monitor these sectors closely, diligently researching their investment potential, and dynamically adjusting the investment portfolio to adapt to market changes, with an aim to achieve stable long-term returns.

Another fund, Dongfang Xingrui Trend Navigation, has also publicly announced changes, reporting the dismissal of Li Rui on December 30, 2024. The fund management was subsequently taken over by Xu Wenbo and Liu Wenzhe.

In addition to management changes, smaller funds leverage the distinct advantage of agility, allowing them to pivot quicklyFor instance, at the end of the third quarter of the previous year, Qianhai Kaiyuan Jiaxin had assets under management of less than 50 million yuan, while Dongfang Xingrui Trend Navigation was only slightly above the 100 million yuan markResearch indicating that funds worth around 2 billion yuan typically take about a week to rebalance shows that those with over 10 billion yuan may require much longer, sometimes up to a month for adjustment

Conversely, smaller and even mini-sized funds can achieve substantial reconfigurations in a significantly shorter timeframe.

Further insights into the fund managers’ trading actions can be gleaned from the latest announcements by several public companiesOn January 2, for instance, Sunshine Nuohe disclosed that among its top ten shareholders, both FuGuo TianHui Selected Growth and RongTong Healthcare Flexible Allocation reduced their holdings compared to the end of Q3 2024.

Sunshine Nuohe primarily engages in generics development, consistency evaluations, and innovative drug research and now reports shareholder updates indicating a reduction of 300,000 shares held by FuGuo TianHui Selected Growth, which was previously managed by Zhu Shaoxing, at 3 million shares and a 65,000 share drop by the RongTong Healthcare flexible allocation fund, managed by Wan MinyuanAdditionally, Anxin Health managed by Chi Chensen has reduced its holdings by approximately 1 million shares.

Moreover, Huaihe Energy’s recent announcement suggested that as of December 16, 2024, the FuGuo Value Advantage Mixed Fund, managed by Sun Bin, had newly entered the top ten shareholders of the company with a holding of 30 million shares, which was notable as the fund was absent from the previous Q3 top ten list.