From the top 2% of the year to the bottom of the year: Founder Fubon Xin Hong's "Profit and Loss Share" dilemma and investment warnings

Invest in stocks by looking at the analysis reports from Jin Qilin analysts; authoritative, professional, timely, and comprehensive, helping you discover potential thematic opportunities!

Source: Mianbao Finance

Doubling in 2025, plummeting 22.11% since 2026, a long-term loss of over 8% since its inception, and a maximum drawdown of nearly 70%—Fangzheng Fubon Xinhong A has illustrated the market rule of “profit and loss come from the same source” with extreme performance. This flexible allocation fund, relying on a strategy of high turnover and high concentration in track competition, stood out in the 2025 tech bull market, but exposed its strategic shortcomings during the market switch in 2026.

This is not just the fluctuation of an ordinary fund—it’s a profound lesson about “track faith” and “lack of risk control.”

Established for 6 years: a “gamble-style” performance roller coaster

Fangzheng Fubon Xinhong A was established on July 26, 2019, with a performance benchmark of the Shanghai and Shenzhen 300 Index return rate × 70% + the CSI All Bond Index return rate × 30%—from the positioning perspective, it was supposed to be a relatively stable flexible allocation fund balancing equity and bonds, but its actual performance has followed an “extremely aggressive” curve.

As of March 25, 2026 (same below), this fund has been established for over 6 years, with a cumulative return still showing a loss of about 8.16%, and a maximum drawdown close to 70%, making it a typical representative of “roller coaster-style” performance.

Looking back at the performance trajectory over these 6 years, three distinctly different stages can be clearly seen:

- 2019-2024: Continuous stagnation and repeated pitfalls. The performance in 2020 was acceptable, but from 2021 to 2024, it underperformed the benchmark and peers for four consecutive years, especially in 2022, with a drop of 39.11%, nearly at the bottom among peers.

- 2025: A gamble pays off and doubles. This year, Fangzheng Fubon Xinhong experienced a “comeback,” with net value surging by 99.27%, ranking among the top 2 in its category. The logic behind this is a “gamble-style” bet—the fund heavily invested in the robotics industry chain, coinciding with the explosion of themes related to AI and humanoid robots, hitting the windfall bonus. However, this “single-point betting” model is bound to come with high risks: when the windfall recedes, the net value will inevitably undergo significant adjustments.

- From 2026 to now: The windfall recedes, and the drawdown intensifies. As the enthusiasm for the robotics theme waned, related stocks significantly adjusted, and the fund failed to reduce its positions in time, causing the net value to decline continuously. As of March 25, Fangzheng Fubon Xinhong Mixed A has recorded a return of -22.11% this year, completely shedding last year’s halo.

Betting on robotics: both the hero of the doubling and the culprit of the drawdown

And all of this is closely related to its three fund managers since its inception—all three fund managers ranked at the bottom of their peers during their terms.

The first fund manager, Fu Jian, had a short tenure, with average performance; the second fund manager, Wen Chenyu, incurred losses of over 20% during their term, directly setting the tone for the fund’s sluggishness; the current fund manager, Li Chaoyu, has been in charge since November 2020, with a loss of 27.27% during their tenure, underperforming the performance benchmark by over 30 percentage points.

Public information shows that Li Chaoyu graduated with a bachelor’s degree from the Mathematics Department of Nanjing University and obtained a master’s degree in statistics from George Washington University in the United States. He has worked at CCB Wealth Management, Ding Tian Investment, and Xinhua Fund, and joined Fangzheng Fubon Fund in September 2020. Currently, his only managed product is Fangzheng Fubon Xinhong.

Looking at the fourth quarter of 2025, Fangzheng Fubon Xinhong’s top ten holdings are highly concentrated and all focus on the technology growth sector. At the end of the fourth quarter, the total holdings of the fund’s top ten stocks accounted for over 50%, representing a typical “heavy betting” model.

Specifically, the fund’s top ten holdings include Siling Zhichui (7.84%), Zhejiang Rongtai (7.73%), Weichuang Electric (7.58%), and Changying Precision (7.53%), most of which are related to robotics and new energy vehicle components, which were popular tracks in 2025. However, since 2026, as industry policies adjusted and market sentiment cooled, these sectors experienced a collective pullback, directly dragging down the fund’s net value.

More critically, the fund’s position switching remains frequent, with seven new heavy positions added in the fourth quarter, but it failed to timely follow the market’s main line switch, leading to “missteps”: after the robotics sector receded, it failed to timely shift to other high-growth sectors, continuing to hold related stocks and exacerbating the drawdown.

Wind data shows that among the fund’s ten holdings, nine have recorded declines this year, with only Siling Zhichui slightly up by 5.52%. Hengbo Co., Zhejiang Rongtai, Lixing Co., Weichuang Electric, and Changying Precision have all seen declines exceeding 30%.

The massive increase in scale: investors who followed at high positions are suffering heavy losses

The scale change of Fangzheng Fubon Xinhong is another key dimension to understand the risks of this fund.

Wind data shows that by the end of 2024, the combined scale of Class A and Class C of the fund was only 2.28 million yuan, on the edge of being a mini fund. As the net value continued to rise in 2025, funds began to pour in on a large scale. By the end of 2025, the combined scale of the fund exceeded 900 million yuan.

What seems like a booming scale growth actually hides concerns. The rapid scale increase poses a significant challenge to the fund manager’s operational flexibility—originally adaptable to small capital’s high-frequency rotation and heavy betting strategy, it may become difficult to manage after the scale expands, greatly increasing the difficulty of adjusting positions.

More critically, if the market continues to decline, and investors panic and redeem en masse, the fund may be forced to passively reduce positions at low levels, further dragging down the net value, creating a vicious cycle of “redemption - reduction - net value decline.”

The six years of Fangzheng Fubon Xinhong are a microcosm of many “dark horse funds”: achieving short-term explosive growth by betting on a single track, ultimately falling into a deep drawdown due to the cooling of the popular track.

Heavily betting on the “gamble” track, the fund’s net value experiences extreme fluctuations, and the cumulative return since its inception remains negative. Does the aggressive style conceal compliance risks?