Star fund manager Qiu Dongrong's third quarter report is out! He is aggressively buying Xiaopeng Motors and focusing on these three investment directions for the future.

According to the Zhonggeng Fund's third-quarter report disclosed on October 20th, renowned fund manager Qiu Dongrong manages a total of 5 funds with a cumulative scale of approximately 26.2 billion yuan as of the end of September. This is not significantly different from the management scale of 28.1 billion yuan at the end of June this year. Among them, Xiaopeng Motors-W (09868) is one of the top ten heavy-weight stocks in the Zhonggeng Value Navigation Fund in the third quarter.

The data shows that Qiu Dongrong's 5 funds under management include Zhonggeng Value Navigation, Zhonggeng Value Dynamic Allocation, Zhonggeng Value Quality One-Year Holding, Zhonggeng Hong Kong Stock Connect Value 18-Month Closed, and Zhonggeng Small Cap Value. In terms of performance, as of October 19, 2023, the year-to-date return rates of Qiu Dongrong's 4 funds are all negative, and 3 of them have lower year-to-date return rates than the benchmark return rate for the same period.

Specifically, Qiu Dongrong made some noticeable adjustments to the holdings of these 5 funds in the third quarter.

Firstly, Qiu Dongrong's representative fund, Zhonggeng Value Navigation, had a net asset value per share of 2.3312 yuan at the end of the third quarter. In the third quarter of 2023, the net asset value per share of the fund increased by 3.84%, while the benchmark return rate for the same period was -3.69%. Changshu Bank (601129.SH) and Chihong Zinc and Germanium (600497.SH) dropped out of the top ten, while Xiaopeng Motors-W (09868) and Green Leaf Pharmaceutical (02186) entered the top ten. Qiu Dongrong reduced holdings in Shenhua Holdings (000933.SZ) and Yuexiu Property (00123), and increased holdings in China Overseas Development (00688) and Chuan Yi Shares (603100.SH), among others.

It is worth noting that Xiaopeng Motors-W appeared for the first time in the top ten heavy-weight stocks of Zhonggeng Value Navigation, with a total holding of 8.9 million shares and a market value of 527 million yuan, accounting for 5.30% of the fund's net asset value. In addition, Xiaopeng Motors-W also appeared in the top ten heavy-weight stocks of Zhonggeng Value Quality One-Year Holding in the third quarter report. Qiu Dongrong's decision to buy Xiaopeng Motors-W and include it in the top ten heavy-weight stocks demonstrates his recognition of the company.

As for the Zhonggeng Value Dynamic Allocation, the changes in the top ten heavy-weight stocks mainly involve adjustments in holdings. The main reductions include Changshu Automotive Decoration, Shenhua Holdings, Poly Development, and China COSCO Shipping Energy Transportation, while the main increases include Huatong Shares, Chuan Yi Shares, Aima Technology, and Antu Biological.

Looking at the Zhonggeng Value Quality One-Year Holding, the overall holdings are similar to those of Zhonggeng Value Navigation. Changshu Bank, Chihong Zinc and Germanium, and Yuexiu Property dropped out of the top ten, while Xiaopeng Motors-W, Saiteng Shares, and Kuaishou-W entered the top ten. Qiu Dongrong reduced holdings in Shenhua Holdings and increased holdings in Chuan Yi Shares and China Overseas Development, among others. Zhonggeng Hong Kong Stock Connect Value 18-month Closed-end Stock: This fund, which heavily invests in Hong Kong stocks, increased its holdings in the third quarter in companies such as Saiseng Pharmaceuticals, Xiaopeng Motors-W, China Hongqiao, Kuaishou-W, China Overseas Grand Oceans Group, and Tongdao Recruitment. In addition, Green Leaf Pharmaceuticals and Euconvis Bio-B entered the top ten holdings, while Tencent Holdings and Xtep International exited the top ten.

Now let's take a look at Zhonggeng Small Cap Value: Chihong Zinc and Germanium exited the top ten holdings, while Saiteng shares entered the top ten. The fund increased its holdings in companies such as Chuanyi shares, Guangxin shares, and Aima Technology, while reducing its holdings in Jingchen shares.

From the overall changes in holdings, it can be seen that in the third quarter, Qiu Dongrong mainly reduced his holdings in some non-ferrous stocks such as Shenhua shares and Chihong Zinc and Germanium. In addition, Changshu Bank, which was frequently seen in the top ten holdings before, is no longer in the list. There were also significant adjustments in the allocation of individual stocks in the Hong Kong stock market, with increased holdings in the pharmaceutical and automotive sectors, while Tencent Holdings is no longer visible among the top holdings.

Looking at the third quarter, although Qiu Dongrong still adheres to the strategy of value investment with low valuation, there is a clear inclination towards growth stocks. Qiu Dongrong also stated in the third quarter report: "We are more actively allocating high-quality growth stocks, paying more attention to the continuous improvement of corporate fundamentals, high growth and high elasticity of profitability, and even buying some 'stories' and 'dreams'."

Qiu Dongrong stated that he will focus on three major investment directions in the future: technology stocks such as pharmaceuticals and smart electric vehicles with strong business growth attributes and large future space; value stocks with supply-side contraction or rigidity but still high growth potential, mainly in industries represented by basic metals, resource companies, and energy transportation companies, as well as real estate and non-bank financials in large-cap value stocks; high cost-effective companies with demand growth space and competitive advantages in supply, mainly in industries such as non-ferrous metal processing, pharmaceutical manufacturing, machinery, electrical equipment and new energy, and auto parts.