High valuations in sector and thematic stocks, public funds begin to focus on undervalued and stable assets

2026-03-12 06:44:45

People’s Financial News, March 12 — Against the backdrop of rising valuations in popular sectors and crowded stocks, public fund allocation strategies are shifting from sector beta trends to alpha. As market profitability is unleashed, fund crowded stocks are facing performance tests after high valuations. Fund preferences are shifting from industry stories to actual performance realization, with the beta trend driven by sector and theme rotations gradually receding. Many fund managers are beginning to avoid high-position crowded stocks and instead focus on uncovering alpha in undervalued, low-coverage stocks with solid independent fundamentals.

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