Li Bei Responds to Critics: Reduced Positions, Manageable Drawdowns, Reflect on Yourself First

On June 23, Li Bei, founder of Banxia Investment and known as the "private equity witch," faced ridicule due to significant drawdowns in the net value of her products. In her latest response, she directly countered these criticisms. Regarding the reasons for the decline, Li Bei admitted in a letter to Banxia investors that it primarily stemmed from substantial drops in her major investment sectors: energy, real estate, consumer goods, and building materials. 1. Critique of Investors' "Want It All" Mentality: She pointed out that some investors, during market upswings, complain about their slow gains and envy others' low volatility, but when the market retracts, they lament their larger losses and seek high-volatility products. She suggested that investors lack composure, always looking for greener pastures. 2. Display of Risk Control and Position Status: Li Bei emphasized that the company's risk control framework has always been stringent, and during the market decline over the past week, they proactively reduced positions according to their risk budget. In a self-deprecating tone, she remarked that there is now "not much position left to be unlucky with," implying that even if the market continues to fall, the potential for further losses is limited. 3. Refuting the Logic of Being Ridiculed: She presented data to illustrate her drawdown control situation—high-volatility products have retracted about 10% from their peak, while low-volatility products have only seen single-digit declines, and she retorted, "I don't know what there is to laugh about; perhaps those mocking us should first reflect on themselves."