He Miao Director of Financial Engineering Department

He Miao studied at Tsinghua University from 1997 to 2004, where he received his bachelor’s degree in electrical engineering and master’s degree in mathematics. At the beginning of his career in the fund industry, he joined Manulife Teda Fund Management in 2007, where he worked as an industry researcher, an assistant to the manager of Research Department, and an investment manager of the Financial Engineering Department. He joined U Capital as a founding partner in 2015, taking the role of quantitative fund manager and director of the Financial Engineering Department.

He Miao has nearly a decade of experience in absolute return product management. He has profound knowledge in fundamental research and specializes in developing quantitative models that aim at achieving medium to high returns while maintaining low to medium risks through a multi-strategy systems.

Investment Philosophy

Stable returns on an investment depend on a company’s medium and long-term fundamentals

In quantitative strategies that focus on short-term or even intraday trading, the players are all financial market participants and are all playing zero-sum games. Investors compete on factors including the behaviors of other investors, their sentiments, and the short-term information gaps that exist amongst all investors. These strategies do not always work in the long term and have limited capacity, leading to particularly fierce competition in the short-run.

On the other hand, in quantitative strategies based on medium and long-term fundamental analysis, real economy operators, government regulators, and end customers are all involved in addition to financial market participants. All these participants can benefit from a company’s growth. It is a win-win model in line with the nature of financial markets, through which investors also play a role of allocating societal resources while gaining themselves. These strategies have higher long-term value.

Investment Methodology

Use quantitative models to execute a fundamentals-based stock selection strategy to maximize the strategy’s advantages

The application of modern computer and artificial intelligence algorithms can expand the scope of traditional fundamental analysis to help find investment opportunities more effectively.