A small Chinese fund nearly facing liquidation saw its assets explode over 500% in the first quarter of 2026 after its aggressive, tech-focused strategy delivered a 46.52% return year-to-date as of April 10. The Jinxin Quantitative Selected Fund’s dramatic reversal was powered by concentrated bets on a handful of high-performing technology and industrial stocks.
The fund’s manager, Tan Jiajun, attributed the performance to a quantitative model designed to identify market turning points. The framework incorporates alternative data points, including "policy text sentiment, capital flow anomalies, and geopolitical risk signals," to find "景气拐点 (sentiment turning points)," according to the fund's quarterly report.
Jinxin’s assets under management swelled to nearly 172 million yuan by the end of the first quarter from just under 28 million yuan at the start of the year. The fund had previously disclosed it was in danger of forced liquidation after its net asset value remained below the 50 million yuan threshold for 60 consecutive days. The growth was driven by retail investors, with its C-class shares seeing total quarterly subscriptions of 168 million yuan and redemptions of 107 million yuan, indicating significant investor churn.
The fund’s success highlights a rising trend of "star fund" effects in China's market, where strong short-term performance advertised on digital wealth platforms can attract a flood of retail capital. While the inflows saved the fund, the high redemption rate suggests many investors are chasing short-term gains, creating potential volatility for the fund's strategy, which relies on holding concentrated positions.
Concentrated Bets on Tech and Industrials
Despite its name, the Jinxin Quantitative Selected Fund operates more like a high-conviction active fund than a diversified quantitative one. The first-quarter portfolio shows a high turnover, with seven of the top ten holdings being new additions. The top three positions—Dekeli, Tengjing Technology, and Hongjing Technology—accounted for over 25% of the portfolio, with individual weights exceeding 8%.
The strategy paid off handsomely. As of April 10, shares of Hongjing Technology had gained nearly 199% for the year, while Tengjing Technology rose over 92%. The manager's 2026 outlook continues to focus on "tech innovation" and "industrial upgrades," specifically in AI application, high-end manufacturing, and new energy sectors.
Manager Cites 'Turning Point' Model
In the fund's annual report, Tan outlined a market view for 2026 that anticipates deep structural divergence rather than a broad bull market. His strategy aims to capitalize on this by identifying industry rotations early. The model was updated in the first quarter to better adapt to macroeconomic shocks by incorporating geopolitical risk indexes and global commodity liquidity indicators.
Tan, who has managed the fund for less than two years, represents a new generation of managers whose success is built on aggressive, thematic bets amplified by online platforms. Whether this high-turnover, concentrated approach can deliver sustainable long-term performance remains a critical question for the investors drawn in by its market-leading returns.
This article is for informational purposes only and does not constitute investment advice.
