On October 28, Rayoon Fund disclosed its third-quarter reports, revealing the holdings of star fund managers Fu Pengbo, Zhu Lin, and Zhao Feng. The reports show increased stakes in tech giants like Alibaba (09988), reflecting their optimism about leading internet companies and the transformative potential of artificial intelligence (AI).

Fu Pengbo and Zhu Lin jointly manage the Rayoon Growth Value Mixed Fund, which surged over 50% in Q3, with its A-class shares rising 51.09%, outperforming the benchmark's 14.82% gain—marking its best quarterly performance since inception in 2019. Among its top 10 holdings, three stocks—New Easun (300502.SZ), Shenghong Tech (300476.SZ), and Cambricon (688256.SH)—doubled in value, though the managers trimmed these positions. Other reductions included CATL (300750.SZ), Tencent (00700), Luxshare (002475.SZ), China Mobile (00941), and Great Star Tech (002444.SZ). Meanwhile, Alibaba (09988) and Dongshan Precision (002384.SZ) saw increased allocations.

Fu and Zhu emphasized their continued confidence in AI, focusing on internet tech, optical modules, PCBs, semiconductors, and biotech. The fund maintained over 90% equity exposure, with top 10 holdings rising to 66% of net asset value (NAV) due to strong gains in key positions. They noted trimming long-held stocks whose rallies were driven by speculative factors rather than fundamentals. For biotech, they favor firms with first-in-class or best-in-class potential despite elevated valuations, citing China's global expansion in innovation.

Zhao Feng, another star manager at Rayoon, delivered solid results with his Rayoon Balanced Value Three-Year Holding Mixed Fund, which posted a 19.29% NAV gain, beating its 13.70% benchmark. His portfolio saw modest adjustments, adding AI-focused internet leaders and undervalued home-appliance firms with stable earnings growth. Top holdings included CATL, Tencent, Luxshare, Focus Media (002027.SZ), Xiaomi (01810), China Pacific Insurance (601601.SH), Weiming Environmental (603568.SH), Alibaba, China Taiping, and Ping An (601318.SH). CATL and Tencent faced passive cuts due to hitting allocation caps, while China Pacific and Weiming saw active trims.

Zhao highlighted AI as the most significant tech wave post-internet, rapidly transforming industries and daily life. Despite unclear returns on foundational model investments, cash-rich internet giants can sustain heavy capital expenditures. However, physical constraints like data center construction delays may limit hardware demand growth, creating uncertainty for recently surging stocks. He sees value in traditional sectors with low valuations, stable cash flows, and attractive dividends, viewing their downside risks as minimal amid potential demand recovery.