The first eight months of this year saw public funds take a sharp turn from euphoria to caution. In the first half, tech stocks soared, and funds that doubled their returns were common. But a market correction in July cooled the AI sector's momentum significantly. These two months quietly reshaped the entire performance leaderboard.

As of August 31st, only seven actively managed equity funds across the market had managed to double their returns. The average net return for actively managed equity funds stood at a modest 6.01%. While this outpaced the Shanghai Composite Index and the CSI 300, it's a stark contrast to the glorious performance seen in the first half of the year.

However, some leaders still stand out. 易方达供给改革 (E Fund Supply-Side Reform Fund), managed by 杨宗昌 (Yang Zongchang), captured the top spot with a year-to-date return of 130.85%, while his other fund, 易方达产业机遇 (E Fund Industrial Opportunity Fund), secured second place. Fund managers like 严凯 (Yan Kai) from Orient Fund, 左少逸 (Zuo Shaoyi) from Noah Fund, 方建 (Fang Jian) from Silver Dragon Fund, and 金梓才 (Jin Zicai) from Caitong Fund also saw their funds rank among the top performers. They navigated the July pullback, protecting their gains and their positions.

But this raises a pressing question: Can the tech sector still deliver strong returns after such a volatile period? What exactly did these market-doubling funds do right? Was it the sector's beta, or did the fund managers' stock-picking skills (alpha) play a larger role?

The answers to these questions require a detailed breakdown and analysis.

Fund Performance Charts See a Major Overhaul

This year's market has unfolded in two distinct and equally dramatic phases. In the first six months, the tech and AI sectors' dominance caught many fund managers with other styles or sector focuses off guard. When the rally came to a halt in July, many found themselves stumbling.

Looking at the cumulative performance over the first eight months, the leaders across the market have been "completely reshuffled." The performance list has seen a whole new set of names at the top.

According to Wind statistics, excluding new funds launched this year, the average net return for all equity funds (including index, hybrid, and stock funds, excluding FOFs, based on primary share classes) over the first eight months was 6.01%. Actively managed equity funds averaged a 7.67% return, clearly outperforming the Shanghai Composite Index and CSI 300.

Specifically, as of August 31st, the adjusted net unit value growth for 易方达供给改革 and 易方达产业机遇A, both managed by 杨宗昌, were 130.85% and 126.95%, respectively. The other five funds that doubled their returns include 东方人工智能主题 (Orient AI Theme) managed by 严凯, 汇安趋势动力 (Hui'an Trend Momentum) managed by 陈思余 (Chen Siyu), 诺安创新驱动 (Noah Innovation Driven) managed by 左少逸, 国泰半导体制造精选 (Guotai Semiconductor Manufacturing Select) managed by 彭凌志 (Peng Lingzhi), and 银华集成电路 (Yinhua Integrated Circuit) managed by 方建, with year-to-date returns ranging between 105% and 112%.

Following closely behind, funds like 财通多策略 and 财通匠心 managed by 金梓才, 申万菱信智能驱动 managed by 卜忠林 (Bu Zhonglin), 南方信息创新 managed by 郑晓曦 (Zheng Xiaoxi), 创金合信专精特新 managed by 王先伟 (Wang Xianwei), 民生加银聚优 managed by 王悦 (Wang Yue), and 宏利领先中小盘 managed by 张岩 (Zhang Yan) achieved returns around 90%, placing them in the top twenty of the market's active funds.

Weighing the Impact: Product Strategy or Fund Manager Skill?

A glance at the funds mentioned reveals that most lean towards a tech-growth style or focus specifically on AI and semiconductors, once again confirming the adage "He who holds AI wins" this year.

But the role of the fund managers is also critical. On one hand, the leaderboard has changed significantly since mid-year. Products that led earlier might be losing steam in the third quarter, while others have climbed the ranks through consistent, steady performance.

On the other hand, the leaders aren't all industry-themed products. Funds like 左少逸's Noah Innovation, 杨宗昌's E Fund Industrial Opportunity, 金梓才's Caitong Ingenuity, and 张岩's Macro Leading Small and Mid-Cap are all broad-based funds. The wider investment mandate of these funds puts a greater test on the fund managers' judgment and research capabilities.

From a performance consistency perspective, managers like 金梓才 and 方建 haven't just seen a single product shine for a short period. Instead, they've had multiple products performing well over the past two to three years. The existence of such fund managers validates that active equity investing still holds significant promise in the domestic market.

General Stock Funds Show Diversified Leadership

In contrast to the market-wide dominance of growth-style products, general actively managed stock funds display a more diversified set of styles among their leaders.

汇安趋势动力, managed by 陈思余, leads this category with a year-to-date return of 111.77%, followed by 申万菱信智能驱动A, managed by 卜忠林, with a 98.45% return.

Additionally, funds such as 华商改革创新 managed by 刘力 (Liu Li), 嘉实绿色主题 managed by 蔡丞丰 (Cai Chengfeng), 国寿安保数字经济 managed by 吴坚 (Wu Jian), 建信科技智选 managed by 黄子凌 (Huang Ziling), and 红土创新新科技 managed by 盖俊龙 (Gai Junlong) have also emerged as standouts in this category.

Furthermore, the performance gap among top general stock funds is significant, with a spread of 52.54 percentage points between the top and bottom of the leading cohort. This clearly illustrates the differentiated outcomes that higher-equity-holding funds can experience.

Hybrid Funds: Smaller Firms Take Center Stage

The competition in the hybrid fund category is fierce, and over half of the leaders in the overall equity-biased rankings come from this category.

Besides the previously mentioned managers, the leading group in hybrid funds also includes 东方阿尔法科技优选 managed by 周谧 (Zhou Mi) and 梁少文 (Liang Shaowen), as well as more products managed by 严凯, 方建, and 金梓才.

Additionally, the top 20 hybrid funds largely overlap with the top 20 across the entire market. The top of the hybrid fund list is still held by 杨宗昌's E Fund Supply-Side Reform Fund, followed by his E Fund Industrial Opportunity A.

An interesting observation is the strong representation of smaller fund companies on the hybrid fund leaderboard. Just counting them, there are ten products managed by firms like Orient Fund, Hui'an Fund, SYWG Manulife, Caitong Fund, China Merchants Fund, Orient Alpha, and Huashang Fund. In contrast, among the industry's top ten largest companies, only E Fund and Southern Fund hold significant positions. The performance of fund managers from smaller firms is noticeably more outstanding.

Some believe this is because smaller companies are more willing to place bold bets on specific niche investment areas. Others think that smaller companies focus their resources on a single point, creating a differentiated competitive advantage. Both viewpoints have their merits and provoke discussion.

Index Funds: Semiconductor Themes Dominate Half the Field

Among index funds, the top performers are fairly homogenous, almost all being semiconductor-related products. More than half are tied to indices tracking semiconductor materials and equipment themes. Their returns are also relatively close, ranging from roughly 101% down to 72%. This overly uniform performance serves as a cautionary signal for the trajectory of these related indices in the third and fourth quarters.

QDII Products: Divergent Paths Lead to Individual Successes

Looking at overseas allocation, QDII funds show significant divergence in their returns.

China-Korea semiconductor-related products have been slightly more prominent. 华泰柏瑞中证韩交所中韩半导体ETF联接 (Huatai-PineBridge CSI KRX China-Korea Semiconductor ETF Feeder Fund), managed by 李沐阳 (Li Muyang), posted a year-to-date return of 77.57%. The same series of on-exchange ETF, co-managed by 柳军 (Liu Jun) and 李沐阳, is also leading its peers.

Beyond Korean semiconductor products, high-return offerings have also emerged in areas like crude oil commodities, overseas internet, emerging markets, and global tech chips. The main market narratives have revolved around the tech industry and the energy cycle. Oil products form one major category, with funds like 易方达原油 (E Fund Crude Oil), 南方原油 (Southern Crude Oil), 嘉实原油 (Harvest Crude Oil), and 博时标普石油天然气 (Bosera S&P Oil & Gas) all performing well.

Additionally, broad-based stock-picking QDII products have also shown strong results, including 国富亚洲机会 and 国富全球科技互联 managed by 徐成 (Xu Cheng), 嘉实全球产业升级 managed by 陈俊杰 (Chen Junjie), 天弘全球高端制造 managed by 刘冬 (Liu Dong), 景顺长城全球半导体 managed by 汪洋 (Wang Yang) and others, and 易方达全球成长精选 managed by 郑希 (Zheng Xi).

Bond Funds: Equity Prowess Remains a Key Differentiator

For bond funds specifically, the performance has remained steady. 华商可转债A (Huashang Convertible Bond A), managed by 张永志 (Zhang Yongzhi), leads the pack with a 28.76% year-to-date return. His other fund, 华商瑞鑫 (Huashang Ruixin), ranks second, while 国泰可转债 (Guotai Convertible Bond Fund), managed by 茅利伟 (Mao Liwei) and 秦培栋 (Qin Peidong), comes in third.

Others in the top ten include 财通收益增强 managed by 罗晓倩 (Luo Xiaoqian) and 匡恒 (Kuang Heng), 南方广利回报 managed by 刘文良 (Liu Wenliang) and 王润栋 (Wang Rundong), 工银瑞信添慧 managed by 陈涵 (Chen Han), and 易方达丰和 managed by 张清华 (Zhang Qinghua) and others.

These products are typically managed by teams specializing in convertible bonds, multi-asset or absolute return strategies, or by bond team members in charge of secondary bond funds that also invest in equities. This highlights these managers' comprehensive and diversified investment skills. These fund managers and their products are certainly ones to watch this quarter.