The funds have suffered a massive loss, truly a massive loss! Recently, the A-share quantitative circle has experienced what feels like a major earthquake, drawing widespread attention from investors in the securities market. After selling over 2.5 billion yuan worth of stocks within the first minute of the market opening, Ningbo Lingjun Investment, one of the four major domestic quantitative funds in the financial industry, issued an apology statement in the middle of the night, acknowledging that its A-share quantitative trading strategy has deficiencies and areas that need improvement, causing a significant impact on the A-share market index. Additionally, a large number of A-share quantitative trading fund net values have seen a substantial drawdown, with fund performance losses exceeding 20% in just one week! What has happened?
A 30% plunge in quantitative fund net values in January?!
This news struck like a bolt from the blue, plunging many fund investors and quantitative fund holders, who had hoped to make money without effort, into a predicament. There are even rumors that some investors, upon hearing this news, were so emotionally overwhelmed that they fainted in the restroom.
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In the recent earthquake of the A-share quantitative circle, as the Shanghai Composite Index broke through 3,000 points and continued to lose 2,900 points, 2,800 points, 2,700 points, and other integer levels, and the spectacular scene of a thousand stocks hitting the limit down before the Spring Festival, the net value of quantitative funds plummeted like a high platform diving loss.
According to in-depth observations by Youliao Finance, quantitative private equity funds with asset management scales below 5 billion yuan were particularly hard hit in this turmoil.
Some A-share quantitative funds that had previously performed well, such as Probability Investment, Rui Zhi, and Yu, have seen their flagship fund net values experience an excess return drawdown rate of over 20% within a week of the Spring Festival.
This means that these quantitative funds have suffered severe losses, with many investors watching the value of their investment portfolios shrink significantly, and the funds' losses are severe, causing their moods to plummet as well.
Even the performance of well-known top-tier quantitative private equity funds with assets under management exceeding ten billion yuan is also very bleak.In the week leading up to the Spring Festival, the 500 Index Enhanced product under Qilin Investment saw an excess drawdown of over 12%; the 500 Index Enhanced product under the quantitative fund giant Huanfang Quantitative also experienced an excess drawdown exceeding 11%.
It's not just the sharp decline in fund performance in the past week, but the drop in the net value of quantitative funds in January this year is even more astonishing.
YL Finance observed that the net value of many quantitative funds fell by more than 30%, with the most severely affected public mutual funds adopting quantitative trading strategies seeing a net value drop of over 40%!
This fund performance has led to significant losses for many investors, even causing some to question their life choices.
Where is the professionalism of the fund managers reflected?
And what about the risk control systems of the fund management companies?
Lingjun Investment, which sold 2.5 billion yuan worth of stocks in a short period, ignored the market liquidity risk of quantitative trading strategies, resulting in a rapid decline in the A-share index.
Previously, economist He Qiang stated that quantitative trading is unfair in the A-share market.
Quantitative investment expert YL Finance reminds everyone that in the volatile and unpredictable stock market investment, there is no one-size-fits-all, unbeatable quantitative investment strategy. Even some A-share quantitative investment strategies and fund models with substantial long-term profits will face the risk of significant losses at certain stages.
Taking the exclusive A-share quantitative investment strategy model developed by the YL Finance team as an example, which is very familiar to the stock fans of YL Finance, also known as the "Beautiful 50" A-share investment portfolio.The "Beautiful 50" A-share investment portfolio is a pure long stock investment strategy, which does not overlay the use of financial instruments such as stock index futures and options for hedging and arbitrage. Over a period of 10 years, it has achieved an investment performance of more than 55 times growth. However, during these ten years, this quantitative trading model has experienced two severe fund performance drawdowns.
Therefore, as a pioneer in domestic A-share quantitative investment research, Financial Insider can well understand the predicament faced by these emerging quantitative circle's new star fund managers in recent years, as I have personally experienced these challenges.
This time, due to the quantitative trading fund investment strategy not adapting to the changes in the securities market environment, these young A-share quantitative fund managers and investors have suffered excessive losses, with many people even becoming numb to the losses.
What the quantitative fund managers need to do next is to iterate and upgrade the A-share quantitative trading strategies and models they use, continuously improve the risk control system, reduce losses, enhance returns, and bring better returns to fund investors!
Let's wait and see!