Private placement strategy structure chart
Stock strategy
Stock strategy is based on investing in stock assets as the main source of income, and its investment targets are stocks of listed companies in Shanghai and Shenzhen, as well as financial derivatives related to stocks (stock index futures, ETF options, etc.). At present, the stock strategy is the most mainstream investment strategy in the domestic sunshine private equity industry, and about 8% of private equity funds adopt this strategy. According to the size of risk, it is divided into three sub-strategies: stock long, stock long and short, and stock market neutral.
stock bull strategy
stock bull refers to the fact that fund managers buy stocks at low prices based on their optimism about certain stocks, and sell them when the stocks rise to a certain price to obtain the differential income. The investment profit of this strategy is mainly realized by holding stocks, and the rise and fall of the stock portfolio held determines the performance of the fund. Its essence is a simple stock trading operation, and this strategy has the characteristics of high risk and high return.
stock long and short strategy
stock long and short strategy is simply an investment strategy based on various theoretical models and experience summary, in which different proportions of stock long and short positions (short stocks, short stock index futures or stock options, etc.) are allocated in stock investment, and a portfolio that conforms to its expected returns and risk characteristics is constructed, and it is continuously tracked and adjusted. Compared with the stock long-short strategy, * * * the same point is that the assets are mainly invested in stocks, and the core is stock selection. The difference is that the stock bulls only need to select undervalued stocks, while the stock long-short strategy also needs to select overvalued targets, and at the same time take long and short operations to hedge the portfolio risk. This strategy generally presents the characteristics of medium income and medium risk.
neutral strategy in stock market
neutral strategy in stock market means that fund managers completely hedge the systemic risk of stock portfolio by means of securities lending, stock index futures, options, etc., or leave only minimal risk exposure in order to obtain excess returns. The stock market neutral strategy can be regarded as a special implementation of the stock long-short strategy. The market neutral strategy requires that the systemic risk of the portfolio is approximately zero, and the fund manager must construct a rigorous portfolio risk hedging model to estimate it to ensure that the risk exposure of its long positions and short positions is equal. The income of such funds mainly comes from the difference between the ups and downs of long and short positions. This strategy is generally characterized by low returns and low risks.
managing futures strategy
managing futures strategy is called Commodity Trading Advisors strategy (CTA), which mainly invests in commodity futures, financial futures, options and derivatives, foreign exchange and currency. The key to distinguishing the management futures strategy from other strategies is that futures are leveraged transactions, investors can multiply their gains (or losses), and short selling is as common as long selling (there is a long position and a short position behind every futures contract), and investors can benefit from both ups and downs. This strategy generally includes three sub-strategies: futures trend strategy, futures arbitrage strategy and compound futures strategy.
Futures trend strategy refers to the fund manager tracking the rising and falling trend of commodity prices through qualitative and quantitative analysis methods, and gaining profits through long and short. Such strategies are generally characterized by high returns and high risks.
Futures arbitrage strategy
Futures arbitrage strategy refers to the fund manager's taking advantage of the unreasonable spread of the same futures product in different markets and at different time points, or the unreasonable spread of related futures products in different trading places through qualitative and quantitative analysis methods. Having a deep understanding of the spread and finding unreasonable pricing is the key to the success of arbitrage. Arbitrage is an effective trading model from the perspective of capital profit-seeking or hedging. Such strategies are generally characterized by low returns and low risks.
compound futures strategy
compound futures strategy refers to the fund manager's gain from the rise and fall of the futures market through various analytical methods and trading means. This kind of strategy has a large capital capacity and generally presents the characteristics of medium income and medium risk.
Relative value strategy
Relative value strategy emphasizes profiting from the relative price of assets, which involves two highly correlated assets or the same asset in different markets at the same time. When the price difference between these two assets (markets) becomes sufficiently large, buy assets with low prices and sell assets with high prices to obtain the price difference between them. Simply put, the relative value strategy is a risk-free or low-risk arbitrage. This strategy generally includes ETF arbitrage strategy, convertible bond arbitrage strategy and graded fund arbitrage strategy. Such strategies are generally characterized by low returns and low risks.
ETF arbitrage strategy
ETF arbitrage strategy, because ETF funds can trade in the primary and secondary markets at the same time, when there is an unreasonable price difference between the net value of ETF shares in the primary market and the transaction price in the secondary market, trading opportunities appear. Generally, there are two trading methods: one is discount arbitrage, when the price of ETF in the secondary market is less than the net value, investors can buy ETFs in the secondary market, then redeem ETF shares in the primary market, and then sell the stocks in the ETF basket in the secondary market to earn the difference; The second is premium arbitrage, which is opposite to discount arbitrage.
convertible bond arbitrage strategy
convertible bond arbitrage refers to the risk-free profit-making behavior through the ineffectiveness of pricing between convertible bonds and related underlying stocks. The main principle of convertible bonds arbitrage: When the conversion parity of convertible bonds and the underlying stock price are relatively discounted, there will be arbitrage space between them. Investors can immediately convert convertible bonds into stocks and sell them, or investors can immediately sell stocks, and then buy convertible bonds and immediately convert them into stocks and repay the previous securities lending.
Arbitrage Strategy of Graded Funds
Graded funds, also known as "structured funds", refer to the types of funds with two levels (or multiple levels) of risk-return performance with certain differentiated fund shares under a portfolio. The vast majority of stock-based graded funds are divided into three types of shares: basic shares, class A shares (stable shares to obtain agreed returns) and class B shares (aggressive shares with leverage). When the net value of the basic share is significantly higher than the overall secondary market price obtained by the two types of sub-funds according to the initial ratio, there is a discount arbitrage opportunity. Investors can buy two kinds of sub-shares in the secondary market and apply to merge the two kinds of sub-shares into the base share in the market, and then redeem the base share in the market. When the net value of the basic share is significantly lower than the overall secondary market price obtained by the initial proportion of the two types of sub-shares, a premium arbitrage opportunity arises. Investors can purchase the base share in the market, then apply to split the base share into two sub-shares, and then sell the two sub-shares in the secondary market.
event-driven strategy
Event-driven investment strategy is arbitrage by analyzing the different impacts on investment targets before and after major events. Fund managers generally need to estimate the probability of an event and its impact on the underlying asset price, and intervene in advance to wait for the event to happen, and then choose the opportunity to quit. This strategy mainly includes private placement and merger and reorganization. Such strategies are generally characterized by high risks and high returns.
private placement strategy
private placement refers to investing the raised funds exclusively in private placement stocks, that is, mainly in non-public offerings of listed companies. Private placement usually has good expected returns: on the one hand, private placement is good for the stock price of listed companies; On the other hand, private placement has a discount advantage because it gets the "group purchase price". Private placement funds usually need a large scale to effectively spread risks, and will face the situation that the fundraising cycle does not match the fixed project cycle. In addition, because the fixed-income investors will have a 12-month lock-up period, the funds with fixed-income strategy are less liquid than those with stocks.
merger and reorganization strategy
this strategy is to bet on the concept of stock reorganization, and make a profit after the company announces the merger and reorganization.
portfolio strategy
portfolio strategy refers to applying the concept of "asset allocation" in investment and financial management to a single fund, and the fund manager decides the proportion of asset allocation in different markets and different investment tools according to the changes in the global economic and financial situation. Portfolio strategy is usually used as a tool for asset allocation by investing in many different types of professional funds such as stock funds, bond funds, money funds and even absolute return funds. Investing in "portfolio funds" can give full play to diversified benefits and disperse investment risks, but having a perfect fund portfolio requires far less capital than establishing a portfolio by itself.
FOF
FOF(Fund of Fund) is a special fund that invests in other investment funds. FOF does not directly invest in stocks or bonds, and its investment scope is limited to other funds. By holding other securities investment funds, it indirectly holds securities assets such as stocks and bonds. It is a new fund variety that combines fund product innovation and sales channel innovation.
MOM
MOM(Manager of Managers) is the manager mode of managers. Refers to a fund product, which is divided into two levels: the parent fund and the sub-fund. The parent fund raises funds and then distributes the funds to the lower sub-fund managers for management. Of course, the parent fund manager is not only doing the work of allocating funds, but also making a judgment based on multi-macro trends, making a plan for asset allocation, and then selecting the best sub-fund managers under various investment styles, and can also adjust the fund allocation, increase or decrease sub-fund managers and so on after the fund allocation. FOF directly invests in existing fund products, while MOM gives funds to several excellent fund managers for warehouse management, which is more flexible.
TOT
TOT(Trust of Trusts) refers to the trust products invested in Sunshine Private Equity Investment Trust Plan, which can help investors to choose the appropriate Sunshine Private Equity Fund, build a portfolio and adjust it in time in order to obtain medium and long-term excess returns.
bond strategy
bond strategy refers to the strategy of investing in bonds specifically, and making portfolio investment in bonds to seek more stable returns. In China, the investment targets of bond strategy are mainly national debt, financial debt and corporate debt. Usually, bonds provide investors with fixed returns and repayment of principal at maturity, so bond funds have the characteristics of stable income and low risk. In addition, the bond strategy can also have a small amount of funds invested in the stock market (convertible bonds, new shares) to enhance income.
Macro-hedging strategy
Macro-strategic hedge fund refers to fully utilizing the basic principles of macroeconomics to identify the imbalance and mismatch of financial asset prices, investing in foreign exchange, stocks, bonds, treasury bonds futures, commodity futures, interest rate derivatives and options, etc. in the world, the operation is a combination of multiple short positions, and certain leverage is used to enhance the income at a certain time. The main advantages of macro-strategy are low correlation with stock market and bond market, and flexible investment, which can also create income when the stock market is depressed. Such strategies are generally characterized by higher risks and higher returns.
compound strategy
this strategy operates hedge funds by combining various strategies of hedge funds. Every hedge fund strategy has its advantages and disadvantages. Through the combination of multiple strategies, the risk of a single strategy can often be smoothed, making the performance tend to be stable. Such strategies are generally characterized by low risk and low return.