Huasheng Fund Manager Hu Zhongyuan is a rare fund manager in the market known for achieving strong gains while effectively managing downside risk. His strategy has demonstrated resilience during bear markets and agility during bull markets.
According to Choice data, since Hu Zhongyuan assumed management of the Huasheng Runfeng Fund in March 2019, he has delivered positive returns for seven consecutive years, including during the bear markets of 2022 and 2023. As of February 10 this year, his tenure return reached 381.88%, with an annualized return as high as 25.57%.
Additional statistics from China Galaxy Securities show that the fund's performance ranked in the top 10 among its peers over both the past three-year and five-year periods.
Hu Zhongyuan's career at Huasheng began with money market funds, making him a rare "dual-asset" public fund manager capable of managing both equity and fixed-income assets. He has stated that "bond investing taught me to always calculate the downside first," a principle that evolved into an investment philosophy prioritizing the risk-reward ratio. This approach is likely key to his consistent risk control, positive annual returns, and ability to outperform market indices throughout his seven-year management career.
In the third quarter of 2025, Hu Zhongyuan significantly reduced equity positions, maintaining a low仓位 of around 50% in the fourth quarter. He also further decreased the concentration of the top ten holdings to just over 10%. Concurrently, he substantially reshuffled the portfolio's holdings, taking profits from overheated sectors and reallocating to sub-sectors with higher potential returns.
The latest quarterly report reveals that previously top-weighted AI computing chain stocks such as Xinyisheng, Zhongji Innolight, Tianfu Communication, and Shenghong Technology have exited the top ten holdings. Hu Zhongyuan acquired these stocks early, realizing substantial profits. For instance, the major performer Shenghong Technology was entered into the top ten holdings as early as the second half of 2024 and surged 586.02% throughout 2025, with the fund capturing most of those gains. His position in Zhongji Innolight, held since 2023, also multiplied in value.
Based on the latest holdings, the fund has begun actively positioning itself in AI application hardware, such as consumer electronics. New additions to the portfolio include core industry players like Crystal Optech, Goertek, Luxshare Precision, and Lens Technology. There was also a slight increase in holdings related to the humanoid robot industry chain, with Sanhua Intelligent Control becoming the largest holding.
Hu Zhongyuan previously managed a larger number of funds but stepped down from several during 2025. He currently manages five products, including three偏向债-oriented and two偏向股-oriented funds, with a total management scale of 33.2 billion yuan as of the end of 2025.
Despite operating with a lower仓位, the Huasheng Runfeng Fund still achieved a positive return in the fourth quarter, outperforming both the CSI 300 and CSI A500 indices, culminating in a high annual return of 85% for the year.
In terms of specific adjustments, Hu Zhongyuan made significant moves in the fourth quarter. In his flagship Huasheng Runfeng Fund, the top four holdings from the previous quarter—Zhongji Innolight, Xinyisheng, Shenghong Technology, and Tianfu Communication—were all removed from the top ten. Having initially invested in the AI sector early, for example acquiring Tianfu Communication and Zhongji Innolight in mid-2023 and adding Xinyisheng in the fourth quarter of that year, these stocks had appreciated more than fivefold by the fourth quarter of 2025. Whether through partial reduction or full exits, Hu Zhongyuan realized considerable profits from this AI market cycle.
While reducing exposure to high-flying AI computing stocks, Hu Zhongyuan shifted focus downstream to consumer electronics. From an industry allocation perspective, the largest sector holding for both the Huasheng Runfeng and Huasheng Yuanheng funds changed from communication equipment to consumer electronics in Q4 2025, with the sector's weight also significantly reduced to around 3%, indicating a more balanced industry distribution.
Additionally, the robotics industry chain became a key area for increased investment. Major holdings include Sanhua Intelligent Control, Top Group, Hanwei Technology, and a new addition in Q4, Jiangsu Leili. Reviewing his historical holdings, Hu Zhongyuan began showing interest in the robotics sector as early as Q4 2023, albeit with lighter positions. By Q4 2024, he formally started positioning in the robotics track, substantially acquiring Sanhua Intelligent Control. After holding and continuously increasing the position for five quarters, the stock price more than doubled, and by Q4 2025, Sanhua Intelligent Control had become the top holding in both the Huasheng Runfeng and Huasheng Yuanheng funds.
Overall, Hu Zhongyuan's portfolio exhibits a strong focus on hard technology. Allocated industries are primarily distributed across electronics, communications, media, machinery, home appliances, automobiles, power equipment, and medical devices. Furthermore, it is noteworthy that the偏债混合型 fund he manages, Huasheng Shuangyi Balance, which has a 34% equity仓位, also underwent significant repositioning in Q4, with a complete overhaul of its top ten holdings. Besides focusing on hard tech sectors like humanoid robots and aerospace/defense, it also emphasized allocations to cyclical recovery industries such as chemicals and coal.
Another偏债 fund, Huasheng Anheng, allocated significantly to Hong Kong-listed companies involved in AI edge-side applications, such as Alibaba, Tencent Holdings, Kuaishou, Horizon Robotics, Meituan, Kingsoft Cloud, and Black Sesame Technologies, which develops autonomous driving chips.
In the quarterly report for Huasheng Shuangyi Balance, Hu Zhongyuan elaborated on his macro view. He pointed out that against the backdrop of industrial anti-involution efforts, price indices like CPI and PPI are trending upwards. The traditional economy remains in a weak phase seeking a bottom, while some cyclical industries are experiencing reversals due to supply constraints and consolidation. On the other hand, industries related to new quality productive forces, led by technological progress, industrial transformation, and import substitution, continue to exhibit rapid earnings growth. The proportion of emerging industries within the economic structure is increasing, with more high-quality tech companies listing on the capital markets.
Hu Zhongyuan believes that, overall, the economy is currently in a critical stage of transitioning between old and new growth drivers, focusing on improving quality and efficiency within the economic structure. While the traditional economy faces pressure, high-tech industries are flourishing. Capital market performance largely mirrors these macro trends: the hard tech sector leads gains, while cyclical recovery industries like new energy, chemicals, and non-ferrous metals have also performed well. The fund's equity allocation in Q4 maintained a focus on industries with promising future prospects, while increasing exposure to companies related to the AI edge side and positioning towards AI application hardware.