Over 70% of Billion-Dollar Private Funds are Fully Invested, Grasping Both Technology and Cyclical Sectors

Author: Ma Jiayue

Recently, market volatility has intensified, but private equity funds are becoming more active in their holdings. According to the latest data from Private Placement Network, as of March 6, the stock private equity position index rose to 82.64%, hitting a new high in nearly 10 weeks. In terms of scale, large private equity funds with over 10 billion yuan are showing a clear offensive. As of March 6, over 70% of large private equity funds (with positions above 80%) are fully invested, an increase of more than 15 percentage points compared to the previous week (February 27).

Data shows that as of March 6, the stock private equity position index rose to 82.64%, up 4.02 percentage points from the previous week. The index has returned above 80% for the first time in three weeks and reached a new high in nearly 10 weeks, indicating a recent positive change in institutional expectations for the market.

From a scale perspective, leading private equity funds are showing a significant offensive. As of March 6, the large private equity stock position index was 87.01%. Among them, over 70.71% of large private equity stock funds with positions above 80% are fully invested, a substantial increase of more than 15 percentage points from the previous week; the proportion of medium-position (50% to 80%) large private equity stock funds slightly increased to 24.01%. In other words, among large private equity stock funds, managers with positions over 50% account for nearly 95%.

Stone Investment, in an interview with reporters, analyzed that although overseas geopolitical conflicts have temporarily affected domestic market sentiment, historical experience since 2000 shows that after risk appetite adjusts downward due to geopolitical conflicts, market performance tends to differentiate across sectors, potentially creating oversold opportunities. Additionally, in the longer term, as incremental funds continue to enter, domestic policies are steadily implemented, and policy effects gradually become evident, the probability of price recovery and corporate earnings realization in China will increase, and a profit-driven market trend is expected to further develop.

Under high-position operations, private equity funds’ profitability effects are further highlighted, which also constitutes an important driving force for the influx of new funds.

Data shows that as of the end of February 2026, the 12,270 private equity securities investment funds with performance records in the market had an average return of 6.89%, with the top 5% percentile achieving 23.16%.

Statistics indicate that as of the end of February, there were 7,881 stock strategy funds with performance records, of which 6,657 funds achieved positive returns this year, accounting for 84.47%. The average return for the year was 7.78%, with the 5% percentile return at 24.33%, both significantly higher than the market average.

Additionally, in February this year, a total of 193 private fund managers with products (at least 3 products) achieved record-high net values. Among them, 118 fund managers managing at least three products and with nearly one year of performance display on Private Placement Network have achieved this. Of these 118 managers, 26 are from billion-level private equity funds. From a strategy perspective, there are 21 private equity fund managers managing billion-level stock strategies.

Sources close to the matter reveal that with continuous inflow of incremental funds, private equity is targeting cyclical and technology sectors for deployment.

Panjing Investment Fund Manager Zhan Hongfeng told reporters that the rapid development of the AI industry will remain a key focus this year, especially in upstream core links such as computing power and semiconductors, as well as the implementation of various AI application scenarios. Meanwhile, although precious metals require attention to valuation and performance matching in the short term, under the resonance of macro logic, industrial logic, and monetary logic, precious metals have long-term allocation value, and strategic deployment can be considered at appropriate opportunities.

(Edited by: Xu Nannan)

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