少数派-英文-标题_04.jpg 

  Innovative Investment Philosophy: Alpha comes from bias of the majority

  • The current stock price reflects the information received and interpreted by the market majority.

    non-differentiating investment behavior may only achieve an average market return. 

  • Bias of the majority is the source of market inefficiency and mispricing that the Alpha comes from.

  • In addition to conventional investment research, we put more efforts finding the areas that misunderstanding, misjudgment and extreme sentiment exist.

  • We are not purely value investing.


 Creative Methodology: Application of behavioral finance in China market

  • Enlightened by behavioral finance, we are focusing on identifying frequently occurred bias. 

  • We find high risk/reward ratio investment opportunities in the area that majority investors have bias.

  • According to this methodology, we discovered majority bias and irrational behaviors in terms of

    Demand and Supply, Scarcity, Allocation, Valuation  and Sentiment.

  • Due to unique methodology, our fund performance has low correlation with peers in China. 


 Specialized Investment Process: Focusing on bias of the majority

  • Equity analysts collect mainstream views about macro, sectors, individual stocks etc. 

  • Generate internal research reports with a focus on the bias of the mainstream views. 

  • Weekly investment research meetings to identify valuable bias based on research reports. 

  • Portfolio Manager formulates investment strategy and constructs a proposed portfolio.

  • Quarterly investment committee meetings to review and approve investment strategy.

  • Portfolio Manager executes the approved investment strategy and portfolio. 



For previous years investment thoughts, please lick link: “Letter to Investors”

  本文章1061阅读
一键咨询