Alright, folks, let’s talk about Zhang Kun, the star fund manager at E Fund. His Q1 portfolio updates are out, and they’re… spicy. After a strong Q1 performance – assets under management back above 60 billion yuan (around $8.7 billion) – Zhang Kun is making some serious moves, and frankly, some of them are raising eyebrows.
He’s been shedding weight in tech behemoths like Alibaba and Tencent, and noticeably trimming positions in names like Yanghe and Meituan. Look, I get it, valuations are stretched, but totally ditching these giants? That’s a statement.
Now, here’s a key takeaway: Zhang Kun isn’t just selling; he’s rotating. He’s incrementally adding to positions in traditional baijiu (Chinese white liquor) companies like Shanxi Fenjiu and Luzhou Laojiao, suggesting a potential shift in strategy.
But the real surprise? SF Holding, the logistics giant, is Zhang Kun’s new apparent crush. His E Fund Quality Selection fund added a whopping 226% more SF Holding shares in Q1, making it a top 10 holding! We saw initial positions built in the second half of 2024, but this is a full-blown commitment.
Let’s unpack this a bit – Why the shift?
Firstly, this likely represents a move towards value. Tech valuations are high, while logistics and certain baijiu brands may appear more reasonably priced.
Secondly, it’s a bet on China’s domestic consumption. SF Holding benefits from e-commerce growth, while baijiu remains deeply ingrained in Chinese culture.
Third, Zhang Kun is clearly seeking diversification. Overexposure to tech carries risk, and broadening the portfolio may mitigate potential downsides.
Finally, it’s essential to acknowledge that constant net outflows from his funds continue to pressure portfolio adjustments. He’s managing redemptions while trying to deliver returns – a tough balancing act.
This isn’t just about stock picks; it’s about signaling conviction and adapting to a changing market landscape. It is a bold move from a portfolio manager with a large and loyal investor base.
