Today, fund manager Zhang Kun of E Fund disclosed the second quarter report of fund products for 2024. Following the first-time holdings of Anta Sports (01910) and Prada (01913) in the fourth quarter of 2023, Zhang Kun made significant purchases in the second quarter. Furthermore, although Tencent Holdings (00700) and CNOOC (00883) remain top holdings, Zhang Kun reduced their holdings significantly. In the report, Zhang Kun noted that he does not agree with the pessimistic expectations reflected by investors' pursuit of government bonds and dividend assets, and still believes in the investment value of competitive companies. Currently, Zhang Kun manages four public mutual funds, namely E Fund Blue Chip Selection, E Fund Quality Selection, E Fund Quality Enterprises Three-Year Holding, and E Fund Asia Selection. The largest fund is E Fund Blue Chip Selection, with net assets of 39.036 billion yuan as of the end of the second quarter of 2024, a decrease of 2.108 billion yuan from the end of the first quarter. Specifically, Zhang Kun's representative fund, E Fund Blue Chip Selection, held the following top ten positions: Tencent Holdings (00700), CNOOC (00883), Wuliangye (000858.SZ), Kweichow Moutai (600519.SH), Luzhou Laojiao (000568.SZ), Yanghe Shares (002304.SZ), Hong Kong Exchanges (00388), Meituan-W (03690), Anta Sports (01910), and Shanxi Fenjiu (600809.SH). Among them, Anta Sports was the largest holding in E Fund Blue Chip Selection with a holding of approximately 84.3 million shares, ranking it as the ninth largest holding in the fund, surpassing Shanxi Fenjiu in holding value. Meanwhile, long-term holdings in liquor stocks like Kweichow Moutai, Luzhou Laojiao, Wuliangye remained unchanged from the previous quarter and showed minimal changes in other funds' holdings. On the selling side, reductions in Tencent Holdings and CNOOC were more significant. Moving on to the second largest fund, E Fund Quality Selection, the top ten holdings included Tencent Holdings (00700), Alibaba-SW (09988), Wuliangye (000858.SZ), Kweichow Moutai (600519.SH), Luzhou Laojiao (000568.SZ), Yanghe Shares (002304.SZ), CNOOC (00883), Prada (01913), Shanxi Fenjiu (600809.SH), and Huazhu Group-S (01179). Among them, Prada, a well-known consumer brand, was heavily bought into by Zhang Kun and entered the top ten holdings for the first time. Similarly, Shanxi Fenjiu also made its first appearance in the top ten holdings list since its inception. China Merchants Bank and Hong Kong Exchanges exited the top holdings list. Like in E Fund Blue Chip Selection, this fund also significantly reduced its holdings in Tencent Holdings. Additionally, Zhang Kun further reduced holdings in Alibaba. In the second quarter of 2024, Zhang Kun's management of E Fund Quality Enterprises Three-Year Holding also reduced its holdings in Tencent Holdings. Similar to E Fund Blue Chip Selection and E Fund Quality Selection, this fund also increased its holdings in well-known consumer brand stocks, with Anta Sports entering the top ten holdings for the first time. Additionally, the fund reduced holdings in CNOOC, Meituan, and Luzhou Laojiao. It is worth mentioning that E Fund Asia Selection slightly outperformed its benchmark in the second quarter of 2024. As of the end of the second quarter of 2024, the net asset value of the fund units was 1.058 yuan, with a growth rate of 7.19% compared to the benchmark's return of 7.07% during the same period. In his report, Zhang Kun pointed out that market investors are still embracing long-term government bonds and bond-like stocks despite the continuous warning of risks by the central bank. At the same time, they are continuously avoiding industries related to domestic demand. From these two perspectives, the market's unanimous expectations are already very pessimistic. From the valuations of government bonds and stocks related to domestic demand, it is possible that the market's pessimistic expectations are based on concerns about stagnation, which Zhang Kun does not agree with. In Zhang Kun's investment framework, meeting criteria such as having a good business model, certain competitive barriers, ample free cash flow, and good corporate governance are prerequisites, meaning the company's operations must be of high quality. However, under these conditions, they also give considerable weight to long-term growth prospects, as this is a unique advantage for investors willing to endure fluctuations and a source of higher returns. The continuous development of the economy is the soil for the long-term growth of companies, and in this respect, the domestic economy is still fertile ground. Zhang Kun believes that considering the proportion of household consumption in the economy, investment opportunities brought about by the improvement in people's living standards due to economic development remain one of the most promising long-term sources in the stock market. Due to the current market's pessimistic expectations, some high-quality companies are being traded at valuations that are easily justifiable (P/E ratio, market value/free cash flow). Zhang Kun believes that patience is crucial at this moment, as the long-term return expectations for quality companies are significant.