I came to notice the selected industry of Manulife TEDA was in 2008. At that time, the relative ranking of the fund was near the top. After in-depth study, I found its performance in 2006 and 2007 was at the top for several consecutive years. The funds with good relative performance in bull and bear markets will be good in the long run. If you pay attention to the fund, it’s also reasonable to focus on its leader, LIU Qingshan. Later, from Xiangcai Hefeng Fund Management Co., Ltd, to TEDA Heyin Fund Management Co., Ltd, and Manulife TEDA, the companies’ shareholders changed frequently, but general manager LIU was very stable in his position. He was promoted from the investment director to the company’s manager. I gradually know that he is from Hunan who has the characteristic of perseverance and persistence of Hunan people, but not in his investment. He especially likes history and has seen historical changes. He believes in “Responding is more important than predicting”. From the mutual fund manager to the hedge fund pioneer, what feelings does LIU Qingshan have?

The stock market reaches 5,000 points during my shift to hedge fund

“A person’s life is very limited. If you have an idea, you should put it into practice in order to not regret when you are old.” The words of his mentor firmed LIU’s determination to leave mutual fund and start his own business, and on May 20, 2015, Wellspring Capital, located in Xizhimen, was established.”

However, it’s unexpected that the first hedge fund product issued by Wellspring Capital in the mid-to-late June happened to be in a market slump after the 5,000 points, which can be described as a " a hot potato. Looking back on the year since starting the hedge fund, LIU Qingshan said frankly that it was not an easy job, "we regard this as a test and it can keep a good mindset." In the process of communicating with employees, he stressed that "the difference between the excellent and the ordinary depends on whether you can turn crisis into opportunity." With the wild plunge of A-shares from 5,000 to 2,800, and a tidal wave of liquidation of hedge fund products, Wellspring Capital did not fall under great pressure, and none of its products were liquidated, even the warning line has never been touched. As of late June, all of Wellspring Capital’s products had shown positive growth since this year against the background of the Shanghai Composite Index fell nearly 20% this year.

“The stock market crash didn’t occurred frequently in the past, we strictly control the position between 20-30%, which is our iron laws.” LIU Qingshan talked about the adjustment of the strategy, “About the present market, the stock position is not the most important. What we should do is to consider the varieties of investment and individual share in hand, and analyse where the market opportunities are,” he confidently said, “As long as it is not a stock market crash, it is the spring of professional investors.”

Wearing straw sandals, nails will prick your feet

In the changes of the industry, long-term success depends on adaptability in tactics. Successful investors, who always have Plan B, or even make completely opposite preparations, can deal with the uncertainty of the future in a very short time.

"Either success or failure boils down to the same thing. Any magic weapon that can win may also become a catalyst that can lead to failure." LIU Qingshan never put all his eggs in one basket. He holds both ends of the strategy in awe of the market.

"Wearing straw sandals, nails will prick your feet." LIU mentioned the proverb of his hometown. Don't think that wearing shoes means you are not afraid. In fact, shoes like straw sandals have many holes at the bottom, so it is easier to step on nails, but barefoot will make you be more careful everywhere. Therefore, he did not overestimate himself, nor was he proud of his outstanding performance that year, so that he kept a "barefoot" state to face the market. This kind of modesty also made him able to deal with stock changes calmly.

LIU Qingshan values long-term earnings and development, so does stock selection and company management.

The origin of the name "Wellspring" is a kind of sentiment. Its Chinese pinyin is “Qinghequan”, in which "Qing" stands for wetness, and "he" stands for harmony - the so-called "Qinghe (Wellspring) nourishes everything". The New Book · Shuning by Jia Yi of Han Dynasty: "If a major programme of lasting importance is obtained, the world will be governed smoothly; if the social ethos is clear and harmony, the world will prosper." Reflected in the company’s philosophy, it is to pursue the balance of investment, which is not a simple average, but the pursuit of a balance point in the risk-return scale that varies from time to time in different market environments.

LIU Qingshan regards investment as “the perfect combination of science and art”, and is confident about the whole team. “The company belongs to the employees. In the next few decades, I may just be a picture on the wall, with at most the title ‘founder’ beside it, but the spirit of Wellspring can continue."