My Age of Investment

  Chapter 1058 Fast and sharp knife

  The meeting place between Xia Jingxing and David Einhorn was in a secret private club.

   After a brief greeting, looking at the 40-year-old brown-haired man opposite, Xia Jingxing slowly said, “I heard that people outside call you Don Quixote of the hedge fund world?”

Einhorn took a sip of the coffee on the table, then slowly put down the cup, leaned over slightly, stared at Xia Jingxing, and said slowly and slowly: "As long as I succeed, they will call me. As "the next Buffett."

  Xia Jingxing laughed, "Man, you are quite humorous, Buffett never short the company!"

   "But he often sells put options."

  Einhorn and Xia Jingxing looked at each other, and then leaned back and spread their hands. The whole person looked very casual.

   "Lehman Brothers is not easy to deal with, Ferder must hate you so much now."

Einhorn still had an indifferent tone, "Isn’t it just to report to the SEC? I have experienced a lot these years. If Darren, you have doubts about the operation of Greenlight Capital, you can redeem it until the next redemption period. Your investment of 100 million U.S. dollars."

  Xia Jingxing smiled and said nothing, and did not feel angry because of the arrogant attitude displayed by the other party.

  This guy is young and ambitious, and his life is as smooth as he is on the hook. He has not experienced many social beatings. It is normal to be arrogant.

  In his previous life, he had read the other party’s autobiography "All the way to the end". Although the title is exaggerated, it talks about the other party’s personal experience. At the same time, he also introduced the story of Greenlight Capital.

After working in investment banks and hedge funds for a few years, Einhorn jumped out to go it alone in 1998 when he was 28 years old. He raised US$900,000 from relatives and friends and co-founded Greenlight Capital with his former colleagues. , Opened his own investment legend.

  The reason why the company is named Greenlight Capital is to thank his wife for giving him... the green light.

  In the beginning, in order to save money, Greenlight Capital had to work at a free workstation provided by the main brokerage firm and use printers and other equipment with five other small hedge funds.

  But in such a difficult environment, Greenlight Capital achieved amazing performance in its first year of establishment. There was no loss in one month throughout the year, and the scale of asset management quickly changed from US$900,000 to US$75 million.

  After that, it burst the Internet bubble and shorted the Nasdaq Index, which made Greenlight Capital's reputation.

  In 2002, Greenlight Capital shorted a financial company called United Capital. Einhorn stood in front of the stage and gave a public speech, expressing his doubts about the company’s alleged fraud. United Capital’s stock price plummeted in response.

  This is the first time he publicly expressed his bearish views, and then he got into a lawsuit. While United Capital filed a lawsuit, it also asked the SEC to investigate Greenlight Capital.

  The SEC investigation lasted for a full five years, and finally confirmed that United Capital had fraudulent activities last year. Greenlight Capital and Eindhorn won, and their reputations have also improved.

  However, in terms of asset management scale, Greenlight Capital, which manages billions of dollars, is still a junior on Wall Street, just a medium-sized hedge fund.

  For this reason, the fund of funds of Envision Capital has the opportunity to invest in each other. Funds as large as Qiaoshui and De Shao have no shortage of investors and will not take money from potential competitors.

  Through autobiography, Xia Jingxing still understands Einhorn and joked: “What if the lawsuit between Greenlight Capital and Lehman Brothers also lasts for five years?”

  Einhorn glanced at Xia Jingxing, and said confidently: “I can’t wait that long! I mean that Lehman Brothers will be unlucky if I can’t wait for the day of the court!

  Their accounting methods are very interesting, but no matter how much they cover, the risks of subprime mortgage assets will overflow sooner or later.

  Then Lehman Brothers will inflate infinitely like a balloon until it explodes with a "bang"! The whole world has become quiet! "

  Xia Jingxing smiled and said: "But I think Lehman Brothers has nearly 100 billion U.S. dollars in cash and fast-realized assets in Lehman's account."

   Einhorn sneered, “That’s because you didn’t notice their subprime-related assets of more than 600 billion U.S. dollars. Once Lehman’s capital was eroded, this would be a huge mess.

  Goldman Sachs has guaranteed its own profitability by shorting subprime mortgage assets. Merrill Lynch and Morgan Stanley's subprime mortgage assets have been impaired in quarters. Although their share prices have fallen sharply, their own credit is still there.

   Lehman’s cover-up behavior is equivalent to gathering all explosives together, and the explosive effect must be far beyond everyone’s imagination. "

  Xia Jingxing was silent, doing a thinking state.

   Einhorn asked: "Daren, I still said that, if you want to redeem the funds, Greenlight Capital will never set up any obstacles."

  Xia Jingxing shook his head, “I’m not going to redeem the funds. US$100 million is just a small investment for Envision Capital, and it’s not worth my personal investment.

  I am looking for you because I have a more important thing to discuss with you. "

"Oh?"

  Einhorn sat upright, and the whole person became interested all at once.

  Vision Capital can be regarded as a big fund on Wall Street. Last year, it made a lot of money by shorting subprime debt assets. It is a big winner second only to Paulson Fund and Claire Capital.

  Does it also want to short Lehman?

  Einhorn felt something in his heart, but he did not ask, waiting for Xia Jingxing to take the initiative to uncover the mystery.

   "I want to buy Lehman Brothers!"

  Einhorn can no longer calm down, he looks at Xia Jingxing with a ghostly look, "Dalun, you are not a joke!"

  "I’m serious. Envision Capital’s business spans the stages of startup incubator, seed stage, angel round, VC, growth stage equity investment, Buyout, secondary market, etc., except for one investment banking business."

  Xia Jingxing took a sip of the coffee on the table, “make up this last link, and our entire financial industry chain will be completely complete.”

This large amount of information made Einhorn's brain a little indigestion. After thinking for a while, he asked: "The scale of Envision Capital is not enough to take Lehman Brothers? Even if it is taken by force, you don't have enough funds. Go and help him get back to normal operations."

   "So we need your help!"

  Xia Jingxing looked at Einhorn with piercing eyes, “And we will require the divestiture of all subprime loan-related asset portfolios. We only need a clean Lehman.

  Especially for Lehman’s Asian business, Vision Capital is determined to win.

  The financial report for the first quarter shows that Lehman Brothers' brokerage business income in Asia has reached a new high and has a good reputation and competitiveness in the region.

  You should know that Envision Capital also has a huge investment layout in Asia. The IPO of a startup company invested by our fund alone will be enough to keep an investment bank running for several years. "

  Hearing this, Einhorn finally determined that the other party was not joking, but had carefully analyzed Lehman, and fully considered the complementary relationship between the investment bank and its own business.

   "Why are you looking for us?"

  Xia Jingxing smiled and said: “Because we invested in you, and you happened to short Lehman again, it’s that simple.”

  Einhorn smiled and said, "What benefits can we gain by helping you?"

  "Vision Capital can invest you another sum to help you short Lehman more calmly."

  Einhorn beat a finger, "I need a billion dollars."

  After thinking about it for a while, Xia Jingxing replied happily: "No problem, it's such a happy decision."

  Einhorn smiled and handed it out, "Happy cooperation!"

  Xia Jingxing stretched out her hand and shook it with him, and smiled and replied "Happy cooperation".

  Vision Capital is not suitable for standing in front of the stage, so they need a fast and sharp knife to replace them with what the big shorts should do.

  And Green Light Capital is the knife he chose.

  (End of this chapter)