2. In the category of capital profit-loss ratio, it is not enough to look at the rate of return on capital, but also the rate of return on capital. If the rate of return on capital is 85% and the rate of return on capital is 10%, then the ratio of return on capital/rate of return on capital is 8.5, which is ideal. The greater the proportion, the stronger the profitability of this person.
Influencing factors of retracement:
1. There are three main ways for private fund managers to control retracement: stock selection, hedging and position control. Choosing stocks with safe margins is the first priority to control retracement. A-share retail investors account for a large proportion, and the overall market sentiment fluctuates violently. Any concept and theme, whether true or false, can be hyped up in a short time as long as it is novel and dazzling, but it often plummets after the hype. The game of delivering packages is undoubtedly a disaster for clumsy investors. Therefore, Danshuiquan, Gaoyi and other institutions advocate reverse investment, pay attention to the margin of safety, conduct in-depth research, and buy ginseng at a radish price, thus avoiding the almost inevitable panic after the war drums stop.
2. When fund managers firmly believe in the value of the stocks they hold, once faced with systemic risks, hedging with stock index futures is almost the best risk control method. In the stock market crash, all kinds of stocks have accumulated sediment, and the use of stock index futures has been restricted. Position control has become the last valve to control the withdrawal of orders.
3. The sharp withdrawal of the net value of private equity funds cannot be entirely attributed to the problem of the risk control system. In an extremely harsh market, private equity funds that select stocks will suffer more, and will not increase or decrease their positions according to the ups and downs of the market, as trend fund managers do, so that their net worth will temporarily drop sharply. However, after the decline, the fund's rebound ability, that is, whether the stock selected by the fund manager is wrongly killed or the fundamentals are poor, determines the future fate of the fund. Although for private equity funds with selected stocks, the massive withdrawal of net worth is a serious injury, but it is not fatal. The real achilles heel is that it suffered a big retracement of selected stocks, but it did not enjoy a big increase in selected stocks.