“Old-timer” fund manager sells the “old-timer,” and the “newbie” fund manager buys the “newbie.”

ME AI News, centered on Q2 fund quarterly reports, Guotai Junan Securities has an interesting discovery:

1. Portfolio preferences: the shorter the time in the industry, the higher the “little guy” stockholding ratio
We calculated, for 26Q2, the industry market-cap share of heavily held stocks in the assets under management (AUM) of fund managers with different years of experience. Current younger fund managers’ allocation to the AI sector is stronger than that of seasoned fund managers:
① Actively managed equity fund managers with more than 10 years of experience hold the lowest combined share of electronics + communications, at about 59%;
② For managers with 5–10 years of experience and those with under 5 years, the stockholding ratios are 67% and 68%, respectively.

2. Rebalancing behavior: the longer the time in the industry, the more “old-timers” they sell; the shorter the time in the industry, the more “little guys” they buy
We calculated, for 26Q2, how changes in the over-allocation ratio to industries relative to free-float market cap differ among fund managers with different years of experience. Rebalancing behavior varies across managers:
① Managers with more than 10 years of experience proactively reduce allocation to power equipment (-5.1 percentage points), food and beverage (-3.5 percentage points), and other “old-timer” assets;
② Managers with 5–10 years of experience clearly increase allocation to a single electronics segment (+16.1 percentage points);
③ Managers with less than 5 years of experience increase allocation to communications (+3.0 percentage points), building materials (+2.8 percentage points), and other AI-related areas in which they increased allocation more.
(Source: Wall Street News)