A 30-year-old Chinese fund manager is quietly outperforming nearly 2,300 peers—by doing the opposite of what most expected. Xie Tianyuan, who took over the Penghua Selected Return Flexible Allocation Mixed Fund in early 2024, didn't waste time ditching old-school holdings like baijiu giant Kweichow Moutai. In their place? Stocks favored by China's Gen Z, like Pop Mart (PMRTY, Financial), Mao Geping Cosmetics, and Chongqing Baiya. His $7 million fund is up 24% this year, placing it in the top 3% of its class, per East Money data. Xie's bet? That cultural shifts and emotional spending habits could unlock non-linear growth in an economy otherwise stuck in low gear.
He's not just following trends—he's living them. A lifelong anime fan with a desk full of Dragon Ball Z figurines, Xie seems uniquely wired to spot the next viral IP brand before it hits mainstream radar. Pop Mart alone makes up 10.5% of his portfolio, the max allowed, driven by the breakout success of its Labubu blind-box dolls. Other picks tied to pet culture, cosmetics, and even yellow sparkling wine are benefiting from the same Gen Z-fueled demand. The strategy? Target companies with visually compelling products, unconventional sales channels, and brands that tug on consumer emotion—not just logic.
Still, cracks may be forming. Pop Mart slipped after a state-run newspaper criticized blind-box products, and Laopu Gold—up over 2,000% since IPO—is facing pressure after its lock-up expired. Xie admits some names are pricing in 3–5 years of growth ahead of schedule. But he's not backing off. “The gains may look incomprehensible to some people,” he says, “but it's actually all rooted in earnings.” To him, the bigger story is just beginning—where even legacy companies may be forced to reinvent themselves or risk getting left behind.
