The first-quarter reports for 2026 mutual funds have been fully disclosed, revealing the portfolio adjustments of prominent fund manager Jin Zhicai, Deputy General Manager of Caitong Fund. Jin Zhicai has demonstrated outstanding performance across both short and long terms, with his investment approach characterized by adept sector rotation and a focus on high-growth phases within specialized industries.
Recent data from Choice shows that since the outbreak of the U.S.-Iran conflict on February 28 this year, the seven funds managed by Jin Zhicai have not only avoided declines but have also reached new historical highs. As of April 21, multiple funds under his management have achieved gains exceeding 40% year-to-date, with net value growth surpassing 220% over the past year.
Over a longer horizon, Choice data indicates that Caitong Value Momentum, the fund he has managed since November 2014, has delivered a cumulative return of 1015.33%, translating to an annualized return of 23.45% over 11.5 years. This performance ranks first among fund managers who have continuously managed the same fund for over 11 years. Additionally, according to Galaxy Securities, Caitong Value Momentum ranked among the top three in its category for both 2024 and 2025.
Jin Zhicai’s portfolio remains centered on the AI theme but has diversified into two sub-sectors. On one hand, he has moderately increased allocations to upstream companies in optical communications, as well as firms benefiting from new technological pathways such as OCS and NPO. New additions to the top ten holdings include Yongding Co., Ltd. and烽火通信. On the other hand, he has capitalized on investment opportunities in the PCB upstream supply chain, where both volume and prices are rising, by adding HANS CNC and increasing stakes in生益电子.
Jin Zhicai’s stock selection success rate is notably high, with his portfolio consisting largely of high-performing stocks, many of which were heavily weighted early on. For instance,工业富联,仕佳光子, and太辰光 were included in the top ten holdings as early as the second quarter of last year, while鼎泰高科,源杰科技, and腾景科技 were added in subsequent quarters. In the first quarter of this year, he took timely profits on certain stocks following significant price increases, contributing to stable fund performance and strong growth momentum despite market volatility from the U.S.-Iran conflict.
Jin Zhicai’s total assets under management reached approximately 9 billion yuan in the first quarter of 2026, with the combined size of his seven funds rising to 8.909 billion yuan, a 93% year-over-year increase. Portfolio concentration remained relatively stable, with Caitong Value Momentum maintaining a stock allocation of around 79%, while the other six funds operated with allocations above 90%.
Sector allocation became more balanced, with heavy emphasis on communications and electronics. In Caitong Value Momentum, the weighting of the communications sector increased from 19.53% at the end of the fourth quarter of 2025 to 32.4%, while electronics decreased from 49.82% to 27.97%. The machinery and equipment sector rose from 9.76% to 19.03%. Combined, these three sectors accounted for 79.4% of the fund’s net value, indicating continued concentration but with improved internal structure. Similar trends were observed in other funds such as Caitong Growth Preference and Caitong Fuxing Fixed Open.
This sector realignment appears closely tied to structural shifts in the global AI computing产业链. According to the latest research from TrendForce, the global market for AI-specific optical transceiver modules is entering a phase of rapid growth, with projected expansion from 165 billion U.S. dollars in 2025 to 260 billion U.S. dollars in 2026, representing a year-over-year increase of over 57%. Corporate performance within the产业链 is also strengthening—Wind data shows that among five listed optical module companies that have released first-quarter 2026 reports,中际旭创 led with a 192.12% year-over-year increase in operating revenue and a 262.28% rise in net profit attributable to shareholders.
Jin Zhicai notably increased exposure to the optical communications产业链 in the first quarter. In Caitong Value Momentum, he raised stakes in新易盛 and中际旭创 by 8.06% and 15.97%, respectively, while adding Yongding Co., Ltd. and烽火通信, which accounted for 8.03% and 4.99% of net value. Both of these new holdings have surged nearly 65% year-to-date as of April 21. In contrast,源杰科技 and腾景科技 were reduced by 30.5% and 66.49%, respectively. Despite the cuts,源杰科技 retained significant weight in several funds, while腾景科技 saw a near-complete sell-off, with only 800,000 shares remaining across all seven funds, representing 2.2% of total net value. It is worth noting that as of April 21,源杰科技 and腾景科技 have climbed 117.9% and 123% year-to-date, respectively. Taking profits amid rapid short-term gains appears to be a rational strategy.
Beyond optical communications, Jin Zhicai also adjusted positions within the PCB产业链, focusing on upstream equipment and materials. HANS CNC was newly added to the top ten holdings across all seven funds, accounting for approximately 9.2% to 9.8% of net value.生益电子 received substantial increases, with Caitong Value Momentum raising its stake by 60.07%, Caitong Growth Preference by 37.45%, Caitong Fuxing Fixed Open by 27.05%, and Caitong匠心优选 by 28.70%.生益科技 saw a slight reduction but remained a major holding in several funds. Among these, HANS CNC stood out with a 68.9% year-to-date gain as of April 21, while生益电子 advanced 18%.生益科技, after a V-shaped recovery from U.S.-Iran conflict-related declines, has accumulated gains of over 200% since 2025.
In his quarterly report, Jin Zhicai explained that while PCB industry growth may lag behind optical communications, upstream segments offer faster expansion, with opportunities arising from product upgrades, material advancements, and supply-driven price increases. He also emphasized a significant overweight in overseas computing power, stating that high demand for AI investments is now backed by tangible needs rather than speculation. He believes the market still undervalues overseas computing power supply chain companies, presenting a durable theme for skilled fund managers. Jin Zhicai remains committed to sector rotation,前瞻性, and replicable strategies, aiming to capture excess returns by investing in quality companies on promising growth trajectories.