My Age of Investment

   Chapter 1155 $100 Billion Target

   Despite receiving Xia Jingxing's comfort and understanding, Liu Hai was still not very happy.

  In his view, the failure of the short Wells Fargo battle was only a secondary factor because the boss did not listen to his advice.

   The main factor is that he has no connection with Wells Fargo.

   Facts have proved that Xia Jingxing's prediction of the financial crisis was 99.99% correct.

   The remaining 0.01% should have been checked and filled by their executives.

   Yet he did not play his part.

   If he could have come up with a more powerful and accurate stock analysis report at that time, the boss might have changed his mind. Thinking of this, he suddenly felt a little regretful.

   But bangs didn't struggle for too long. After all, as a financial trader, you have to learn to look forward. How can you be too obsessed with the past. This is a big taboo in trading, and he will not make such low-level mistakes.

   After sorting out his mood, Liu Hai continued to report: "In addition to these heavy positions and option investments, we also shorted financial stocks totaling US$800 million.

The    list includes HSBC, Washington Mutual Bank, East West Bank and other companies. "

   The screen suddenly flashed, and Liu Hai showed another investment income graph with a lower proportion of holdings.

  The gains are all good, with a total of $800 million invested in principal, and a total of $500 million in net income.

   Then, Liu Hai showed and introduced other individual stock option contracts.

   A total of $6 billion in options contracts, of which only $1 billion has been sold or exercised so far.

Excluding the $400 million in option premiums paid on companies such as Bear Stearns, Lehman Brothers, Liangfang, and AIG, the other $600 million in option premiums bought the put options of some companies in pieces, with a total harvest of $1.5 billion net profit in dollars.

  As the last PPT picture is displayed on the screen, the total income of the Liu Hai team's management fund is all classified and summarized in front of everyone.

  Single stock option contract: A total of 1 billion US dollars of option premiums have been invested, and after deducting the exercise and various costs, a total of 5.2115 billion US dollars of capital has been recovered, with a net profit of 4.2115 billion US dollars.

   Short selling of individual stocks: A total of US$14 billion was invested in the initial short-selling principal. After deducting various costs and offsetting losses, a total of US$23.57917 billion was recovered with principal and profit, with a net profit of US$9.57917 billion.

   In terms of rate of return, there is no doubt that the return of options, a more gambling-oriented investment, is as high as four or five times, far exceeding the 68.42% return of shorting the underlying stock.

   For Mao Xia Jingxing not to allocate more funds to the investment in individual stock options? Thinking of making too much money?

   In fact, it is not, but the capacity of the individual stock options market is so large that it can only accommodate so much capital.

   Shorting the underlying stock is the mainstream.

   Then, Xia Jingxing and Liu Hai began to review the gains and losses of the $15 billion investment.

  Xia Jingxing said: "To short the underlying shares of Goldman Sachs, we invested a total of more than 790 million and nearly 800 million US dollars in principal, which was nearly 40 million US dollars more than Morgan Stanley's principal, but the profit was more than 40 million US dollars less.

   This position configuration needs to be optimized? "

  Liu Hai smiled and replied: "Daren, this position allocation is actually reasonable.

   This is not to excuse myself, but Goldman Sachs has a bigger plate than Morgan Stanley, and there are so many outstanding shares per stock, so the principal allocated to Goldman Sachs is so much more.

   Goldman Sachs' performance is much better than Morgan Stanley, so the stock price decline is relatively small.

   But if compared with stocks in other industries, Goldman Sachs is a high-quality short stock. "

  Xia Jingxing nodded lightly, which is why Envision Capital's portfolio doesn't look so "excellent".

   Like AIG, the stock price fell from nearly $60 to $2, why did it allocate more than one billion dollars? Wouldn't it be better to allocate ten or two billion dollars? maximize profits.

   But the reality is that there are too many institutions shorting AIG. They all know that this is a piece of fat, everyone is staring at it, and they cannot borrow a particularly large amount of shares to sell.

  Xia Jingxing said: "Okay, let's not talk about the proportion of heavy-weight stocks, so what about the industry sector?

   In this round of declines, investment banking stocks performed the worst. In the commercial banking stocks, except for Citigroup, the share price of other banks fell less than the commercial banking stocks. "

Liu Hai smiled, "This phenomenon can actually be quoted from what you said before: the spread of the virus takes time, and the spread of the financial crisis is also one industry sector affecting another industry sector, along the path from upstream suppliers to downstream suppliers. quotient of such an infectious sequence.

   In the process of change from the subprime mortgage crisis to the full-scale financial crisis, the hedge funds that fell the least were those hedge funds because the value of the CDO assets they invested in plummeted, or even cleared, and the funds were forced to liquidate.

   The next ones to fall are investment banks, also because many of their self-operated departments are also involved in the CDO whirlpool.

  Why Goldman Sachs has the best stock price and financial report is because they have a team that shorted CDO and hedged the losses caused by other departments holding CDO assets.

   At the same time, because investment banks have thick blood bars, they can support and carry more poison than hedge funds!

  Lehman endured for more than a year, and it was only this month that he could no longer hold on and declared that it was over.

   Next, financial risks have spread in an all-round way, and the economy has suffered a heavy blow. It is the turn of the banks to collapse.

   If it weren’t for the prohibition of shorting financial stocks these days, and central banks around the world urgently replenishing liquidity for banks, we might not know how many banks went bankrupt or suffered a run.

   Now the financial industry is in chaos, and each other looks at each other as if they are about to go bankrupt. Interbank lenders are afraid that the other party will go bankrupt the next day and will not be able to pay. "

  Xia Jingxing asked with a smile: "Do you think there is still room for bank stocks to fall?"

  Liu Haidao: "Yes, no matter how effective the rescue of the market is, it will not be immediate. Looking at it, the economic recession is unavoidable, and the bank stocks will have a hard time in the future."

  Xia Jingxing looked at Liu Hai with admiration, and nodded secretly, Liu Hai has made great progress over the years, at least his judgment on the financial crisis is accurate.

   The other party followed him to the end of the subprime mortgage crisis for two or three years. Even if he was only a middle-aged person, he had some experiences that belonged to him.

   That's right, Xia Jingxing plans to continue to invest in bank stocks next.

   This month, investment bank stocks suffered heavy losses, but commercial bank stocks were not particularly affected. Wells Fargo’s stock price soared, making them a failure in short selling.

   Xia Jingxing had a lot of basis for his judgment.

   Take Citibank as an example, the stock price is still $20 now.

   But many investors rushed in to buy the dips...

   Soon these people will find that they are not copying at the bottom of the mountain, but halfway up the mountain.

   After that, they will be enlightened. It turned out that they had copied to the top of the mountain...

   "What if the short selling ban is not lifted next?" Xia Jingxing asked.

  Liu Haipin showed what Xia Jingxing meant and smiled: "This is impossible, the short-selling ban will never last for a long time, then the US stock market will only collapse faster.

   However, naked short selling is estimated to be suspended, and maybe it will withdraw from the stage of history.

   Also, the most critical point, if we can re-enter the market after the short selling ban is lifted, the short position may not be as large as it is now. "

  Xia Jingxing nodded slightly, "It's natural, I plan to divide the recently withdrawn funds into two, the main funds will go to gold, and the remaining funds will look for suitable opportunities and re-enter bank stocks."

   "Gold?"

   Not only bangs, but even Jiang Ping couldn't help being interested.

   To go long in gold, he had proposed a corresponding plan to Xia Jingxing before, but he never took action.

   Are you planning to do it now?

   Xia Jingxing recounted the verbal agreement he had made with Paulson and Soros a few days ago.

After listening to   , Abel clapped his hands and said, "This is a great plan. Now is definitely a good time to buy gold. If it's too late, asset prices will be fired up."

  Xia Jingxing smiled slightly, "Yes, so this is the reason why I propose to use the main funds to go long gold.

   If you don’t count the funds currently held by Jiang Ping and Abel, you don’t count the $5 billion option contracts that Liu Hai’s team still holds, and the funds in the $5 billion reserve account.

  The New York office has recovered a total of $28.8 billion in funds this time, of which $15 billion is principal and $13.8 billion is profit.

   I'm going to talk to Goldman Sachs and Morgan Stanley to keep our triple leverage.

   In short, we have to formulate specific plans and actions carefully.

   Today is just a precaution with you, so that everyone has a general understanding of the next financial actions.

  Although the harvest this month is not small, the New York office alone has made 13.8 billion US dollars, which is nearly 100 billion yuan in RMB.

   Sounds like a big number, but it’s actually just a phased achievement. "

  Xia Jingxing glanced over the faces of the executives who were present, and suddenly said loudly, "Do you still remember the goals I proposed before?

  We don’t care about the top ten hedge funds in the world. What we really want to do is to be the number one hedge fund and alternative asset management institution in the world.

  Qiaoshui and Heishi, we must surpass them one by one! "

   Hearing Xia Jingxing's high-spirited words and unabashed ambition, the executives also felt that their blood was boiling and burning, and there was an indescribable pride in their hearts.

  If Xia Jingxing said this two years ago, everyone might think it was a whimsical thing.

   If it was said a year ago, it might have been dubious. After all, the company was almost among the top ten hedge funds in the world at that time.

   And now, everyone is convinced.

   Excluding leverage and loans, Envision Capital has almost $20 billion in assets under management in just one New York office.

   What if you add the Hong Kong Island office that is in the limelight and the London office that has kept a low profile?

   What should be the asset management scale of the hedge fund?

   It may be close to surpassing Bridgewater, but the Paulson Fund, which is the third largest in the world, has reached 36 billion US dollars in asset management, so it must be no problem.

   As for Blackstone, which has reached the scale of US$100 billion in asset management, if it only relies on the scale of hedge funds to surpass the other side, there is still a little pressure for the time being.

   I wish everyone a Happy New Year and achieve a thousand small goals next year like Mr. Xia!

   Today will be an update. I have to accompany my family during the Chinese New Year. Please forgive me.

   (end of this chapter)