On October 24th, the third quarter report of Guangfa Small Cap Growth Hybrid Fund managed by Liu Gesong was disclosed. As of the end of the third quarter, the net asset value of Guangfa Small Cap Growth Hybrid Fund was 6.66 billion yuan, an increase of 764 million yuan compared to 5.902 billion yuan at the end of the second quarter. In the third quarter, the net asset value growth rate of Class A and Class C funds of Guangfa Small Cap Growth Hybrid Fund was 19.17% and 19.05% respectively, with a corresponding benchmark return rate of 16.22% during the same period. Although Guangfa Small Cap Growth Hybrid Fund significantly outperformed its benchmark in the third quarter, it still experienced a net redemption of 268 million shares. At the same time, this was the largest net redemption of shares for the fund since the fourth quarter of 2021. Specifically, the stock allocation of Guangfa Small Cap Growth Hybrid Fund at the end of the third quarter of 2024 was 93.98%, the highest allocation since the second quarter of 2022. The third quarter report shows that the top ten heavy positions of Guangfa Small Cap Growth Hybrid Fund are Shengbang Stock (300661.SZ), Deyye Stock (605117.SH), Sailis (601127.SH), Jinlang Technology (300763.SZ), Yawei Lithium Energy (300014.SZ), Western Superconductor (688122.SH), Fortlet (601865.SH), Huaqin Technology (688281.SH), Hongyuan Electronics (603267.SH), and Zhenhua Technology (000733.SZ). In terms of stock changes, new energy technology company Jinlang Technology and electronic technology company Zhenhua Technology were new additions to the top ten heavy positions list, with a corresponding net asset value of 7.27% and 4.14% respectively. Zhenhua Technology entered the top ten heavy positions for the first time, previously ranking as the eleventh and twelfth heavy positions at the end of the second quarter for Guangfa Small Cap Growth Hybrid Fund. On the other hand, Jianghuai Automobile (600418.SH) and Purit (002324.SZ) exited the top ten holdings. Additionally, Sailis was the only stock in the top ten heavy positions that Liu Gesong reduced in the third quarter, with a reduction rate of 4.44%. Performance-wise, in the third quarter, the net asset value growth rate was 19.17% for Class A funds and 19.05% for Class C funds of Guangfa Small Cap Growth Hybrid Fund, while the benchmark return rate was 16.22% during the same period. In the third quarter report, Liu Gesong noted that in the third quarter of 2024, after a rapid rebound following a market shakeout, growth sectors such as the ChiNext Board and the Science and Technology Innovation Board significantly outperformed. The market structure showed significant differentiation, with non-banking, media, real estate, and computer sectors performing well, while traditional sectors like petroleum, utilities, and coal had weaker gains. By the end of the quarter, changes in policies had significantly increased market expectations and risk appetite, leading to confidence in future policy measures and economic growth targets, and an optimistic outlook on future capital market performance. Liu Gesong mentioned that in the third quarter, there were no significant changes in the industry allocation of Guangfa Small Cap Growth Hybrid Fund, maintaining the original level of allocation to globally comparative advantageous assets such as semiconductors, photovoltaics and their industrial chains, lithium batteries, and new energy vehicles, with some individual stock optimizations. With the quick recovery of market sentiment driven by policy shifts, industries and stocks in the portfolio with heavy positions also saw significant rebounds. The fund will continue to adhere to an industry-first approach, seek long-term investments in industries with investment logic that aligns with its framework, and share in the dividends of corporate growth.