My Age of Investment

  Chapter 1057 Windmill Rider

  April 1, U.S. stocks rioted across the board!

  The S&P 500 Index rose 3.59% to close at 1370.18 points on the day.

   Goldman Sachs shares rose 6.94% to close at $176.86.

  Wells Fargo’s stock price rose 8.21% to a closing price of US$31.49.

  ……

  The three major indexes, large financial stocks, and large technology stocks all ushered in a rebound, regaining lost ground and sweeping away the haze caused by Bear Stearns’ nearly bankruptcy last month.

  Many people and many institutions are optimistic that the subprime mortgage crisis has passed safely, and US stocks will rise again.

  The media and rating agencies are also full of joy. News and reports are all optimistic about the market outlook. The typical funeral is very politically correct.

  In this case, the bears are in trouble.

  Vision Capital shorted the S&P 500 Index at 1,400 points, and shorted Goldman Sachs and Wells Fargo at 198 US dollars and 28 US dollars.

   This round of U.S. stocks rebounded, making Envision Capital’s subprime mortgage portfolio take back the short-selling profits of the previous three months, and individual stocks, such as Wells Fargo Bank, even experienced small losses.

  However, Xia Jingxing did not panic, but started to respond calmly.

  He directed Liu Hai and Jiang Ping to start to liquidate part of the investment portfolio, and either guaranteed capital or small losses and small profits can be accepted. The key is to withdraw funds from the stock market and not allow US stocks to be ravaged;

  On the other side, he directed the two of them to take the funds to close their positions, and began to observe the price trends of each investment target, looking for suitable opportunities, and after this round of rebound was over, he immediately shorted at a higher price.

  Xia Jingxing is a firm bearish fan, but he does not plan to suffer from this rebirth of the US stock market. On the one hand, it is to ensure the safety of the position, on the other hand, it can also reap more profits.

   Seeing Xia Jingxing's calmness, Liu Hai and Jiang Ping also relaxed their mentality, led the team to play various technical operations, and continuously optimized the investment portfolio.

  Because of the thick blood bar and the well-prepared, Vision Capital is the most confident and patient bear.

  Other short positions are different. There are liquidators, those who lose their confidence to stop loss and exit the short sellers, and even more anxious ones, in front of the media, exposed that they are shorting a certain company.

  …………

  …………

   "That guy is an industry cancer. For his own benefit, he slandered an old investment bank with a 158-year glorious history and good reputation."

  “These short positions are the culprits that caused Bear Stearns to be on the verge of bankruptcy and the impact of the subprime mortgage crisis. They spread rumors to influence a company’s stock price to achieve their ultimate goal of short-selling profits.”

"But we are not Bear Stearns. Those dirty tricks do nothing for us! We now have 30 billion US dollars in cash and 64 billion US dollars in assets that can be easily realized. We are the investment bank with the highest current asset ratio on Wall Street. one!"

  "I have advised the US Securities and Exchange Commission to immediately intervene in the investigation. The SEC accepted our request and stated that it will thoroughly investigate these hedge funds that violate the regulations and short the market!"

  ……

  The computer placed on the coffee table was playing news. A 60-year-old man in a suit and leather shoes had just walked out of the SEC office building and was immediately surrounded by a group of reporters outside.

   Then in front of the reporter, the old man made a stern accusation against the short head.

  After watching the video, Xia Jingxing picked up the coffee on the table and leaned on the sofa, enjoying a leisurely taste.

   Abel sitting aside was a little uneasy, "Dalun, I didn't expect things to develop like this. Otherwise, we will redeem the funds until the next redemption period.

  Now, we can’t withdraw the money yet, so..."

  Xia Jingxing put down his coffee and waved his hand to Abel, "You are too worried, don't you think David Einhorn has a personality?"

"what?"

   Abel was stunned for a few seconds, and then said: “How can a fund manager like him openly be shorting Lehman Brothers.

  Although this may make the market follow suit and cause the stock price to fall, it is more likely to arouse the vigilance of the short-selling company and do everything possible to maintain the stock price and increase the difficulty of short-selling.

  Our company has been with Lehman for so long and so deeply. If Einhorn disrupts our plan, I don’t know how many more variables will be added. "

   While speaking, Abel hammered his forehead violently, looking very annoyed.

  David Einhorn is the founder of Greenlight Capital and the sub-fund manager selected by Abel for the Daxue No. 2 hedge fund of funds.

  Greenlight Capital carries Abel’s earnest hope. He hopes that this fund will make good performance and help him win more trust from the boss.

  But the other party is better, and taking the money from Envision Capital to short Lehman Brothers, this is not a big deal, or even a good thing, because the other party and the company are in the same camp, not the opposite.

What the other party shouldn't be absolutely sure is to announce the short-selling operation. This is all right. Lehman has already begun the action to maintain the stock price. Reporting to the SEC is the first move. What big trick is offered.

  Abel does not have the ability to be a prophet. He is very worried that Einhorn's recklessness will ruin the company's plans.

   After all, that’s Lehman. The tiger will not fall down, and the lingering power on Wall Street is still there.

  What's more, until today, Lehman’s financial report has not suffered a loss! The ghost knew what big trick Lehman was holding back.

  Yes, Lehman did not lose money last year, and the first quarter financial report released this year is still profitable. Although revenue and profit have dropped significantly compared with the same period last year, there is no loss.

  This performance is among the major investment banks on Wall Street, and only Goldman Sachs can dominate. Merrill Lynch and Morgan Stanley’s first-quarter financial reports issued serious losses.

   Not only Xia Jingxing doubted the authenticity of Lehman Brothers’ financial report, but also Einhorn of Greenlight Capital, who also publicly questioned Lehman Brothers’ use of “special” accounting methods at the investor meeting.

  Although Einhorn said more implicitly, he still made Lehman Brothers CEO Fuld furious. He reported to the SEC and was interviewed by reporters, wishing to stabb Einhorn with a knife immediately.

  Fuld's performance fell in the eyes of Xia Jingxing, and it was an expression of extremely guilty conscience.

  As far as he knows, last month Fuld also approached Buffett once, hoping that Berkshire Hathaway would invest in Lehman.

  However, because the share price and dividend conditions could not be negotiated, Fuld was very tough to terminate the negotiation.

   "What is the current share price of Lehman Brothers?"

   Abel’s very precise report: “Today’s closing price is $37.02.”

   "Remember that there was still more than 60 dollars at the beginning of the year, right?"

  Xia Jingxing asked with a smile, their short position is 60 US dollars, in fact, they have made a small gain now.

  "Yes, the stock price at the beginning of the year was indeed in the early 60s. Last month, due to the Bear Stearns incident, Lehman’s stock price fell by 30% in two trading days.

  But on the third day, because of the first quarter earnings report, the stock price soared 46% to 46.49 US dollars. The corpses that were killed in the sky were everywhere, and blood was flowing.

  Fortunately, our safety pad is thick enough, otherwise, Fuld will play it to death.

  The short positions in financial stocks followed the trend last month. One of them counts as one, but they are all bad luck. Many institutions are too bad to go short. "

  Xia Jingxing smiled and nodded. Because there is no limit on the rise and fall of US stocks, short selling is still very dangerous. This is also an important reason why he chose low leverage and still has so much cash in his hands. It would be bad if he was hunted down.

  He estimated that the shorts were blown out so much, and in the next one or two months, few institutions would dare to go short on US stocks. This provided a favorable cover for Envision Capital’s next actions.

  Abel continued: “After Einhorn publicly questioned Lehman’s financial report and disclosed the short-selling operation of Greenlight Capital, Lehman’s share price has fallen in the past two days and fell below $40.

  However, as long as Lehman releases some more positive news, or the second quarter comes up with a more beautiful or similar financial report than the first quarter, the short positions may be liquidated again. "

   "There is no chance. From the moment Fould rejected Buffett, Lehman Brothers has entered the countdown to the thunder."

  Abel didn’t know why the boss’s tone was so determined. He didn’t wait for him to ask a question, and then he heard the boss say: "Help me make an appointment with Einhorn. I want to meet this windmill rider!"

  (End of this chapter)