My Age of Investment

  Chapter 716 Twenty times record

  "This investment of Nvidia, you must remember a great contribution!"

  When Liu Hai introduced Nvidia, Xia Jingxing interrupted the other party's speech and gave a compliment with a smile.

   Liu Hai smiled, "I am a blind cat and a dead mouse. There is nothing wrong with it."

  Xia Jingxing glanced at her bangs, "Really? I planned to give you a bonus, then forget it!"

   Liu Hai smiled and stopped speaking.

  Nvidia’s beautiful investment is indeed all Liu Hai’s own credit, and it has nothing to do with Xia Jingxing’s guidance.

  In the beginning, Liu Hai researched data and found that this stock was seriously undervalued, which is very suitable for a wave of dips.

   Then he found Xia Jingxing and told about his research and judgment.

  Xia Jingxing didn't want to develop Liu Hai into a puppet, so with a big wave, 10 million US dollars were thrown out for him to practice.

  Such a large sum of money authorized to invest in him, Liu Hai was afraid to accept it at first, thinking that one or two million dollars is enough to practice.

  Under the repeated encouragement of Xia Jingxing, Liu Hai boldly accepted the ten million dollars.

  Nvidia opened a position in August last year, with a holding cost of 9.3 US dollars per share. In April this year, the stock price exceeded 61 US dollars per share.

   Taking advantage of the high point, Liu Hai sold half of the stocks he held and made a profit of more than 30 million U.S. dollars.

  The remaining half of the stocks will continue to be held.

  Now Nvidia’s stock price has fallen to around $25.

  In general, this investment did not maximize the benefits, but it also earned more than 30 million US dollars, which is a very successful investment.

  The other dozen stocks, Liu Hai also introduced the situation next to each other.

  Xia Jingxing listened, but didn't comment much.

  Today's Lixia Fund, he only pays attention to the top ten major stocks, and all the rest is handed over to Liu Hai and his team to practice hands, from researching stocks to buying how much to making a profit, he does not have to ask the whole process.

  This can actually be regarded as giving Liu Hai a great deal of trust, because in addition to the top ten stocks, the remaining 11 stocks have a combined market value of 400 million US dollars, which is not a small number.

  Of course, Liu Hai did a good job. The remaining eleven stocks did not rise much, but most of them rose slightly and outperformed the market steadily.

  After introducing all the stocks, Liu Hai summed up: “Of our $1.415 billion position, our own funds are only $708 million, and the leverage is very low, only doubled.”

  Xia Jingxing nodded. The initial asset management scale of Lixia Fund was only more than 30 million US dollars. At that time, the leverage was three times or four times.

  But more than two years have passed, and the scale of asset management has increased by nearly 20 times. I don’t dare to be as "reckless" as before.

  The big hedge fund tycoon who has been blasted by leverage does not know where he is. The more arrogant he is, the faster he will die.

  The investment bank that called you a brother and sister will sell you in the next second.

  In the financial market, you can always rely on yourself.

  Even the stock price of companies like Apple has almost been cut this year.

  If all the stocks held are cut at once, even their double leverage will be blown up.

  Compared with other financial derivatives, stocks are mild enough, but risks also exist.

  Don’t fear the risk, then only others will go to the grave and give you two notes of incense.

"Oh, by the way, Jingxing, there is something to report to you. A small number of LPs have some complaints, thinking that the performance of our fund has been declining recently, and clamoring that they will redeem their fund shares after the three-year closed period expires. ."

  Speaking of this, Liu Hai’s originally grinning expression turned gloomy.

"what happened?"

  Xia Jingxing was very surprised. Last year, this group of LPs still clamored for additional investment. Why did they change their nature this year?

   Liu Hai sighed, “It is still the performance of the previous year and last year that was too strong, which caused them to have a psychological gap.

  From 2004 to 2005, the annualized rate of return of our fund was 666.66%;

  From 2005 to 2006, the annualized rate of return of our fund was 278.32%;

  In the first half of this year, our fund’s annualized rate of return was only 7.6%. "

"what happened?"

  As soon as he asked these words, Xia Jingxing knew that he was asking too much.

  After the beginning of this year, several heavy stocks of Lixia Fund, such as Apple, Google, and Amazon, not only did not rise much, but fell a lot, resulting in the overall return of the fund being lowered.

   "The sideways or decline in stock prices are only temporary. Besides, it's only half a year. What can you tell?

  If the investment timeline is extended to one year, one and a half years, isn’t it a big profit? "

  Xia Jingxing shrugged, feeling that this group of LPs had made a fuss too much.

Liu Hai smiled bitterly, "Yes, the truth is so right. The main reason is that our return rate in the first two years was all in the top three digits of the percentile. This year, it suddenly became a single digit. Some LPs talked weirdly, saying that our fund might not work. NS."

   "Is there anything else?"

  Xia Jingxing smiled anxiously, “You write down your name, and wait another half a year before returning the money to them. Then, even if they ask for renewal, we don’t want their investment.”

  There is no need to roll the name, Xia Jingxing knows which group of people Liu Hai is talking about, it must be the wealthy Chinese businessman in San Francisco introduced by Liu Jinhang.

  As for First Securities and the Stanford University Foundation, this type of institutional investor will certainly not be so lacking in foresight.

   Liu Hai smiled and said: “In fact, it’s normal for LP to complain. It’s been halfway through this year, and we only hit a single-digit record, which is hundreds of times worse than previous years.

  Some people attributed the reason to your leaving the United States, which caused the fund to lack a pair of sharp eyes;

  Some people say that the first two years have caught up with the good opportunity for China's concept stocks to rise sharply. Lixia Fund has heavily stocked China's concept stocks. The luck component is stronger than the strength factor. Now that the China concept stocks have stalled, we will also stall. "

  Xia Jingxing lowered his head and smiled, and found that the reasons for these LPs were too strong, and he was speechless to refute.

  A moment later, he raised his head and looked at Liu Hai and said, “The reason why we set a three-year closed period in the past was because we had no reputation, no historical performance, and we had to do it.

  When I was raising the second phase of the fund, I don’t have to be so wronged. I just set a ten-year closed period for me, and the excess income share ratio will be increased. I don’t want to invest. "

  Liu Hai burst into laughter. In two and a half years, Lixia Fund has achieved a 20-fold return rate. Looking at the entire Wall Street, who else is there?

  Xia Jingxing said relievedly: “In fact, it is normal for the return rate of funds to fall. Don’t take it too seriously, because with the increase in the scale of asset management, it is very difficult to hit the return rate of several times in the past!"

   Liu Hai nodded. In the past, they could stud one stock or a few stocks and enjoy the joy of doubling the stock price.

  It’s not working anymore, 1.4 billion US dollars stud a stock, if the plate is not big enough, you will either buy all other companies or buy the stock price to the sky.

  Once the positions are dispersed, higher requirements will be imposed on the level of the team's research on stocks, and the size of the team will also expand.

  At this time, measuring the quality of hedge funds will not be the level of a certain individual, but the overall level of teamwork.

  Xia Jingxing also has some experience, feeling that the strength of the team is stronger than himself.

  Suppose two and a half years ago, he bought all of Google’s shares for $36.75 million, and then left it alone, holding it to the present day, with a market value of less than $200 million.

  If you add 5 times the leverage, you can't reach the scale of 1 billion US dollars, and there may be a liquidation.

  He made up his mind that a hedge fund that specializes in stocks has to go on. No matter what, it is better than he directly buys the stocks of top giants such as Google and Amazon and just let it go.

  Furthermore, when the reputation of hedge funds grows, they can also collect money from other wealthy individuals and institutions to manage them.

  In short, it means to help others to make some money by the way without affecting the speed of making money, and at the same time collect management fees and excess revenue sharing.

  Helping others to make money, and being able to make good fortune in the United States, which is very helpful to stabilize his industry in the United States.

  If the hedge fund is large enough, it can become an important shareholder and director of a company, and it can also form a synergy with the VC and PE businesses in the primary market.

  In short, there are many benefits, but the key is to build up the volume. At present, the actual volume is only more than 700 million US dollars, which is far from enough.

  (End of this chapter)