Who says veteran investors only stick to liquor stocks? E Fund’s star manager Chen Hao executed a bold portfolio reshuffle this year, aggressively increasing exposure to AI-related industries, non-ferrous metals, and energy storage. This strategic pivot reversed his funds’ underperformance, driving net asset values (NAVs) to historic highs in Q3.

Data shows that as of October 29, seven of Chen’s eight managed funds hit record NAVs, with the top performer delivering an 82% year-to-date return, while others mostly exceeded 60%.

Often grouped with Zhang Kun and Xiao Nan as the "E Fund Trio," Chen has now outperformed both peers. His pragmatic approach—shifting from traditional holdings to growth-oriented sectors like AI tech stocks (e.g., Zhongji Innolight, Wus Printed Circuit, and Foxconn Industrial Internet)—reignited his funds’ performance.

Key metrics: - E Fund Steady Growth, managed since 2012, boasts a 14.65% annualized return. - E Fund Kexiang, managed since 2014, delivered a 709.78% cumulative return (19.98% annualized). His sole laggard, the Hong Kong Connect-focused E Fund HK Growth, narrowed losses to near breakeven after a 46% drawdown.

**Portfolio Highlights**: 1. **Tech-Driven Turnaround**: - Q3 saw six new top-10 holdings in E Fund Kexiang, including AI/server plays (Foxconn Industrial Internet, Zhongji Innolight, Wus Printed Circuit, Shennan Circuits), non-ferrous metals (Tongling Nonferrous Metals), and energy storage (Sunwoda Electronic). These surged 60%+, with some doubling. - Exits included Juhua Group and Dajin Heavy Industry.

2. **Sector Shifts**: - Increased allocations to electronics and power equipment; trimmed healthcare. - Top merged holdings across eight funds: ST Huatong, Shannon Semiconductor, Ming Yang Smart Energy, Tencent, and Great Wall Motor (601633).

3. **Hong Kong Market Recovery**: - Tencent remained a core holding (held since 2021, up 3x), while new additions like Jiangxi Copper (+177% YTD) and Shanghai Fudan Microelectronics (+184%) boosted NAVs.

**Outlook**: Chen anticipates sustained momentum in AI, power/energy storage, and defense sectors, supported by global liquidity easing and China’s policy tailwinds. "Q4 reforms and the 15th Five-Year Plan will catalyze industrial upgrades," he noted.