Private equity witch Li Bei sends investor letter: Fund net value significantly drops, strongly warns AI chasing to be cautious BlockBeats News: On June 22, Li Bei, founder of Shanghai Banxia Investment Management Center, released an open letter to investors on June 21, disclosing that the fund's net asset value has significantly decreased due to a sharp drop in equity holdings in the four major directions of energy, real estate, consumption, and building materials. The current net equity position of the fund is 50%, and the position has been moderately reduced to clear positions with insufficient certainty. Li Bei admitted in the letter that the relevant positions have been under significant pressure recently, and the pullback in domestic demand and real estate direction has exceeded expectations. One of the most watched words in the letter pointed directly to the current market sentiment: she said that she fully understood the impatient investors and respected the option of holding money to redeem the fund, but for the investors who want to convert the redemption funds to chasing up AI, she said, "Even if you scold me, I would also like to advise you to be cautious." As for the logic of not chasing AI, Li Bei clearly pointed out that the trigger conditions for the collapse of AI foam had already appeared - represented by the annual income growth of Anthropic, the income growth of the most downstream model companies slowed significantly, and by the end of the year, the likely rate would be lower than the previous optimistic expectation of the market, and the subsequent downward trend of capital expenditure was a big probability event. She also pointed out that the current AI industry chain is in a stage of "high profitability and valuation, declining leading indicators, and still rising lagging indicators", which theoretically is a gradual withdrawal rather than a window to chase after more. For her own holdings, Li Bei insists that the current valuations of domestic demand related leading companies are extremely low, and the price to earnings ratio of consumer leading companies has dropped from over 50 times to less than 10 times. Even if domestic demand continues to fluctuate at the bottom for a long time, it can still create good absolute returns in two years; Once domestic demand rebounds or unexpected policies appear in the real estate market, it is expected to quickly achieve significant excess returns.