Ding Feng original | Zhang Gao: "three axes" support Ding Feng growth for nine years
On December 11, 2016, Zhang Gao (pictured), chairman of Dingfeng Assets, was invited to attend the 4th high-end wealth forum held by China Merchants Securities Hushan Shanguan Sales Department, and shared the development history of Ding Feng in the forum for nine years. The core of the "three axes": that is, continue to maintain outstanding performance in the investment side, the marketing side to form a stable marketing system, management can handle well the equity, team, mechanism, continuous change and other issues.
Today, we share this speech with Jun. The full text is as follows:
Ding Feng assets for nine years, from the management scale of less than 100 million, the team does not exceed 3 individuals, to the current management scale of more than 10 billion, after nine years, which also experienced a lot of ups and downs. Today I would like to share some dry goods. We were established in November 2007. At that time, the A-share market was around 6,000 points, and the current point is around 3,000 points. My own experience is that we can come to this day. First, we have indeed met a relatively good external environment. In the past few years, China’s capital market and the development of private equity in the sun have grown. The second is that our characteristics are different from other private equity. Other private equity Many starters have a relatively good foundation, such as public offerings or foreign experiences. In comparison, our starting base is relatively low, and more is the brokerage investment bank and self-operated transfer.
We pay more attention to the organizational operation of the company. This may be different from other private equity, and may also be related to my own professional background. I have worked in investment banking for 6 years, and I have also set up a business myself. I have also worked in large-scale central enterprises. Since our establishment, we have paid more attention to the organization and operation of enterprises. Sunshine Private Equity is also an enterprise. When many sunny private funds are created, the founders face several choices. They are like Buffett’s Berkshire Hathaway, or Tiger Tiger Fundamentals. It is a platform-based operation. It can be a semi-open or open platform. We think more clearly when we start a business. We want to take a platform approach.
In the development of private equity companies, there are nothing more than solving three problems. First, the investment side, the second side, the marketing side, the third side, and the management side. These three issues will continue to be encountered during the development process.
The investment side is the foundation for the private placement of the sun. I have done it for nine years and I have a personal experience. I think that good private equity has a unique feature. It is all very clear about what kind of money you want to make. This is what our Ding Feng asset has repeatedly hoped to strengthen.
In the past nine years, we have done many business line extensions on the investment side, from stocks to multi-strategy and arbitrage strategies. Since this year's development, our main focus has been consolidation rather than expansion. We must think clearly about what the core competitiveness is, what kind of money we earn, and what kind of system we must use to make money.
The second is the marketing side. Sunshine Private Equity has done so for many years. In this regard, my biggest experience is that most of the domestic funds are short money. They are very hopeful that they will make better returns in the short term. We have observed that the large amount of private placements in the sun is often a particularly brilliant performance in a certain year. We will find several major channels to make efforts to rush to the scale in one fell swoop. . Both channel and individual investors are more concerned about the performance of Sunshine Private Equity in the previous year. This is a very interesting situation in China. No matter how poor you have done in the past, as long as one year is doing extremely well, grab a few The core channel will have a dramatic increase in scale. This has a lot to do with the immaturity of domestic investors.
However, we look at the better sunshine private equity in foreign countries and it is better to solve the long-term funds. Especially Berkshire Hathaway. The longest period of funding comes from two aspects, one is the shareholder and the other is insurance. In the future, we must extend the funding period as long as possible. This, of course, must be matched with the investment strategy. If it is a mid-to-long-term investment strategy, we must match medium and long-term funds, otherwise the execution strategy will mutate. So when marketing, some money we have to give up, if it conflicts with our investment strategy, it will lead to variability in investment results.
The second is we see in the current marketing, the core is the individual investors, channels, institutions. We believe that direct sales agencies in the future are the most valuable private equity clients. They are often large industrial capitals. Especially in China, the economy has entered the era of traditional industrial integration. The oligarchs of many industries have surfaced and companies no longer need large amounts of capital to expand. There will be a lot of idle capital, such as the current home appliance industry. At this time, we talked about such customers. The first is a large body, and the second is a good communication. We can understand the profit model of Sunshine Private Equity. I think this is a better model in the future. Long-term FOF is also a better choice, the worst mode is short-term funds, compared to performance every six months, resulting in fund managers always consider short-term operation, is not conducive to the implementation of long-term strategy.
Third, management. We have gone from a few people to a team of hundreds of people. I think that the core of management is:
The first is to have a clear strategic goal and think about what this year's goal is. We have always wanted to know more clearly. We wanted to be sunny in the beginning, made our first Sunshine Private Equity Fund relatively early, and secondly we wanted to build our own brand. We tried to do well and we got market recognition. There are many awards at home and abroad, such as Taurus and Morningstar. The third is to regulate the taxation. Taxation is not just a matter of simple accounting. A good tax system is designed from the entire structure, which will make the entire taxation office more reasonable and healthy. Fourth, we have entered the mainstream banking channel. This requires long-term certification. Fifth, in 2012, we realized the importance of equity investment and began to build equity investment teams, including multi-strategy teams. I was investing in stocks at that time and felt that it was completely positively related to the market. I wanted to smooth risks, equity and multiple strategies. Can play a better role.
The best state of the future is that when we already have a large number of institutional customers and multi-strategy product lines, we can do customized services and customize strategies for large organizations. We are also trying to not only be able to do more strategic teams on our own, but we can also work with external teams and even do in-depth cooperation on equity. We have seen many small and medium-sized companies, from the scale of billions to billions, take this “endogenous plus extension” model. As a company, we can also make such a choice.
The second is the team. Someone has everything. All of this is to think about how to get a good team in and out of the game. This is a very important point.
The third is the mechanism. There are three cores: decision-making mechanism, distribution mechanism, and risk control mechanism. The decision-making mechanism is how the company makes decisions, at which level the final decision-making body is, whether it is the investment committee, the fund manager, or the marketing director, and how much authority there is; how the distribution mechanism does incentives and assessments, and in this respect we strongly emphasize the normative Transparency; the risk control mechanism is rejected by one vote. How can the wind control be prevented from running into a situation of "spilling"?
The fourth is that we see very bullish companies in growth stocks. Development is a process of continuous change. In this, the first problem we face is equity. This is a very real problem. Failure to handle it will cause the team to fall apart. Equity is also constantly adjusted and optimized during development. Second, when there are continuous business lines, how can these lines operate better? A business line may be a job from the beginning, and then become a business unit, in the development of a subsidiary.
Sunshine private equity companies have also encountered the same problem, so I think that the investment side to solve how to continue to maintain excellent performance, marketing must have a stable marketing system, in management to solve the above four problems I said.
I think the greatest fortune is that, in this huge market, in the market of tens of trillions of dollars, each business line will do very well, be very good, and be profitable, but it will also be handled badly. Loss. I am very grateful for being in such an era.