The net worth was updated that night, triggering a wave of redemptions from investors seeking individual stock opportunities. Most of them had to wait for T+3 days to receive the funds. The latest position announcement of Tiansheng Pioneer Hybrid Fund revealed surprising top holdings:
1. Zhongguo CSR (601299) — 9.98%
2. Zhongguo CNR (601766) — 9.98%
3. Zhongguo Zhongtie (601390) — 9.98%
4. Zhongguo Railway Construction (601186) — 9.98%
5. Longji Shares (601012) — 5.35%
6. Daminine (002030) — 4.23%
7. Source Light Software (002063) — 4.16%
8. Jinlong Electromechanical (300032) — 3.75%
9. Del Future (002631) — 3.28%
10. Tong Huashun (300033) — 3.08%
Investors were surprised by the heavy concentration on stocks with the "Zhong" prefix. The top four, accounting for 20% of the fund's overall holdings, explained the recent performance decline as the stocks of North and South cars had their licenses suspended. The other six stocks, constituting 23.85% of total positions, were pulled down by the four major prefixes.
Interestingly, Lu Ming's decision to invest heavily in the north and south cars was noted. With the upcoming merger into "Zhongguo Zhongche," there were expectations of a surge in the market, potentially equaling a 20% holding ratio.
In the following days, Tiansheng Pioneer's net worth showed steady growth, slightly outperforming the broader market. Investors, anticipating the resumption of licenses for the north and south cars on April 7, were hopeful for a market surge.
On Tuesday, April 7, the resumption of trading for Zhongguo Zhongche led to a one-word daily limit. However, the results disappointed some investors, leading to comments like:
"Today's market is up +2.52%, and it started to underperform. Can you believe it?"
"Why so little?"
"Dacheng came to see the legendary enchantress with flexible configuration. It's very comfortable for more than 4 points today..."
The next day, at the Wanxiang Group Headquarters morning meeting, discussions about Lu Ming ensued. Wanxiang Group, being a large capital operation institution, acknowledged Lu Ming's remarkable performance but expressed concerns about some investors questioning his integrity.
A senior analyst noted a peculiar trend in Tiansheng Pioneer's net worth, suggesting deliberate control of its rise. This realization led to a moment of silence in the meeting. Wang Yue, President of Wanxiang Group, acknowledged the difficulty of controlling the net value trend of a hybrid public fund compared to a single stock, recognizing the extraordinary trading strength if this was indeed intentional.
The net worth of the fund is derived from the comprehensive net worth of all constituent stocks held, spanning various industries and making it seemingly uncontrollable.
In discussions at Wanxiang Group Headquarters, questions arose about the possibility of such exceptional performance and whether there could truly be a gifted individual capable of achieving a 10,000% increase in three months, even after deleveraging. Some wondered about the motivations and purposes behind intentionally controlling the net worth increase, especially considering it might not be beneficial for Tiansheng Fund Company and the fund manager himself.
Wang Yue, the President of Wanxiang Group, had a moment of realization and suggested that the young manager might be deliberately cooling down the rapid growth of Tiansheng Pioneer Mixed Fund. He believed that if the fund had maintained its high growth, there might have been opportunities for private equity, but the current strategy could lead to more favorable cooperative relationships.
Wang Yue dismissed the idea of acquiring Tiansheng Capital, emphasizing the potential benefits of cooperation and maintaining a friendly relationship. The approach suggested was one of respect and etiquette when engaging with someone of such talent.