Investment Methodology

Our investment philosophy focuses on valuing investing in credit bonds, avoiding excessive distressed credit, and targeting stable risk-adjusted returns.

We adhere to the following investment philosophy in all our investment activities: 

360 in-depth credit research and analysis

We adhere to the principle of "no depth research, no decision-making". We delve deep into the diverse information about investment targets, conducting in-depth fundamental research, and cross-validate information from various channels. We base our decisions on deep research and reject gambling.

No leverage, No maturity mismatch

We don' t use leverage and strictly match the bond duration with fund life (the weighted average duration should be less than 1 year) to eliminate unnecessary liquidity risk.

Industry selection

We focus on industries that are relatively overlooked or misunderstood by the market, with higher excess returns and plenty of bond issuers. We conduct bottom-up research on the industry value chain, with a particular emphasis on cyclical industries.

Hold to maturity and reposition dynamically

For each investment, we aim to hold to maturity, while also actively monitoring and adjusting our portfolio based on new investment opportunities.

Moderate diversification

Each fund holds 10-30 positions, with no more than 20% of the portfolio invested in a single bond issuer. This approach strikes a balance between diversification to reduce portfolio risk and avoiding excessive diversification that may lead to insufficient post-investment tracking.

Adequate safety margin

"Margin of safety" is our core credit risk control concept. By determining enterprise value through in-depth research, we aim to find investment targets with market prices deviating significantly from their intrinsic values as much as possible.