Li Mingyang is bewildered by Lu Ming's unexpected shift in investment strategy towards long-term price investment. Lu Ming explains that, despite some external factors, the main reason is returning to value eventually as capital scales up.
He draws an analogy between value investing and technical analysis, stating that the relationship is like that between Tao and art. When capital is small, one can achieve short-term gains through speculation, but with huge amounts of funds, success lies in grasping the pulse of the times and following the general trend.
Lu Ming clarifies that although he's not strictly following value investing, it's more like trend trading. He emphasizes that value investment is a deceptive term in the market.
As the afternoon session begins, Lu Ming instructs traders to close all available positions and establish a 1% bottom position in ten selected stocks, including major consumer goods like Maotai, Laojiao, Wuliangye, and Haitian Weiye.
He further orders the gradual building of low-level positions in Anshi's shares until the fund's individual stock positions are filled. The total stock position for Tiansheng Pioneer Mixed Fund ends at 35%, with the remaining 60% in currency outside the market, waiting for an opportune time to re-enter.
The management, monitoring Lu Ming's moves through the real-time monitoring hall, expresses satisfaction and relief after witnessing the eleven new targets opened in the afternoon.
Lu Ming continues to please the management with his next move: "Buy Anshi's shares around 12.2~12.5 yuan. The company's institutional account has 11 billion funds. You can trade as much as you can in this price range today."
Li Mingyang is left puzzled by this decision, questioning Lu Ming about the unexpected choice of Anshi's shares. Lu Ming, maintaining a calm demeanor, responds to Li Mingyang's curiosity as his strategic moves continue to unfold.
As the closing bell approached, Li Mingyang remained bewildered by Lu Ming's decision to invest in Anshi Group's stocks, a company whose stock price has been deliberately suppressed by senior management. Lu Ming explained that market pressures encourage funds to hold or increase holdings of big blue chips, leading him to buy Anshi's shares.
In the final five minutes of trading, Anshi's trading volume soared to nearly 8 billion, closing at 12.37 yuan, a -4.26% decrease. Tiansheng Capital's institutional accounts sold 2.3 billion yuan, holding 187 million shares, or 1.18% of the total share capital. Plans were made to discreetly continue purchasing in the secondary market until reaching a 5% stake.
Following the market's close, the 1,000-share limit was hit again, with the main board reaching a new low of 3629.56 points, a drop exceeding -7%. Most trusts liquidated positions, causing systemic risks as positions neared the liquidation line.
Despite the market turmoil, Tiansheng Vanguard Hybrid Fund's net worth reference continued to decline by eight or nine points daily, yet investors holding the fund remained calm. The net worth update every night showed increases of eight or nine points, sometimes exceeding ten points, creating a stark contrast.
The investors in Tiansheng Vanguard Hybrid Fund reveled in joy, especially those who didn't sell during the previous high position, doubling their income. The only regret was that the fund had yet to reopen for subscription, missing out on the opportunity to capitalize on the recent market fluctuations.
As the messages under Tiansheng Pioneer Mixed Fund changed, a surge of envy and resentment filled the screen. Lemon monsters, expressing sour sentiments, dominated the messages, showcasing the mixed emotions among investors.
The narrative continues, capturing the evolving dynamics in the financial markets and Tiansheng Capital's strategic moves.