The Son of Finance of the Great Age

  Chapter 123 Liquidated Fund Managers

Zhong Shi was also very surprised. This is the central business district of Chicago. You can see rows of neatly parked yachts and sailboats downstairs. Moreover, this building is the tallest apartment building in the world. Most of the people living in it are in the city center. Crowd at work.

  750,000 US dollars, 2,500 US dollars per square meter, was a large amount in the early 1990s, but for Zhongshi, it was not a problem at all.

He looked at the reaction of the white man in front of him, and after careful thought, he realized that $750,000 is not a small amount, and if he used a hundred-dollar bill, he would have to pack a large travel bag, and now he couldn’t find a place to go. Bring so much cash.

   This is because Zhong Shi has lived in the mainland for a long time, and he always has some cash in his pocket for emergency, so he blurted out without thinking. In the United States, the most common method of payment is a check.

  Although the houses in the United States are permanent property rights, they have to pay a fee every year. This fee is the property tax. In places like downtown Chicago, the property tax is even as high as two percentage points per year.

   "A check? Now?" Zhong Shi said impatiently in front of the real estate agent and Linda. He can also go further north to buy a house in the wealthy area, but firstly, the space is too large, and it is a waste for him to live alone; secondly, he only lives here for four years, and he will return in 1997 In Hong Kong, in addition to paying property taxes during this period, workers have to be hired to clean the lawn, swimming pool, etc., which will be a considerable expense. After all the consideration, he still decided that it would be more convenient to find an apartment.

  The real estate agent next to him was ecstatic, and quickly took out the contract, writing and drawing on it, and he could get quite a lot of commissions for this transaction. The representative of HSBC, Linda, didn't say anything, and she knew that the price was cheap enough.

   After writing a HSBC check for US$750,000, the house officially belonged to Zhong Shi.

   "Since the transaction has been made, may I ask your identity?" The middle-aged white man put away the check and put on a smiling face. He really wanted to know what the young man in front of him was doing, and how he could be so bold and generous.

  His words immediately aroused the interest of the other two, and they also wanted to know how this young man had so much money. Could it be that he was the son of a wealthy businessman in Asia and came to the United States to be gilded. Linda was careful, and she quickly realized that the private bank was aimed at those wealthy businessmen themselves. Although they would take care of their offspring to a certain extent, they would definitely not order them according to the highest standards as if they were sent from the Hong Kong headquarters. treat.

   "Hehe, I'm just an ordinary college freshman who made some small money in the capital market." Zhong Shi laughed and replied casually.

The white man's face turned red, and he could hear the perfunctory meaning in Zhong Shi's words, but he still didn't give up, and continued to ask tentatively: "The capital market? If this is the case, then we are still walking together, you can talk to me ?"

For this kind of talk about inquiring into other people's privacy one after another, it is already a kind of rudeness to a certain extent, but Zhong Shi understands that everyone has curiosity, and he doesn't mind revealing a little information: "Actually, it's nothing, just occasionally. I bought some strange options in the market, and then made some profits after execution.”

   "Options?" The white man showed a complicated look on his face, and after a long silence, he said leisurely: "Options are a good thing, especially stock options!"

   "Oh? Is there any story here?" Zhong Shi became interested all of a sudden, and asked along with his words.

"In 1987, I bought a lot of put options on high-quality stocks in CBOE. I made my first pot of gold on that black Monday, and I have been fascinated by this trading product ever since." In the past, the middle-aged white man showed a proud look on his face, "After that time, my friends and I launched a fund that specializes in investing in stock options, and made profits through event-driven. Later, the Japanese stock market plummeted, and my Because the fund bought a large number of short-selling futures and index options, the profit of that year even reached 80 percent. At that time, how many investors begged us to help them manage their funds with checks..."

   Speaking of this, the middle-aged white man showed a fascinated expression on his face, but what he said next was even more surprising.

"It's a pity that the good times didn't last long. During the European currency crisis last year, we lost a lot of money in the foreign exchange options market because we bet on the pound by mistake. But we then adjusted our strategy and shorted the French franc a lot, but even more unexpectedly Yes, the French franc was not defeated under the attack of so many foreign exchange funds, which made us lose a large amount of option premiums on foreign exchange options. The net value and management scale of the fund shrank sharply, and investors rushed to redeem their funds. Shares, now the fund has reached the point where it has to close. If I don’t want to continue in the options market, I’m afraid I won’t sell this apartment.”

  After hearing the words of the middle-aged white man, Zhong Shi sighed in his heart. He is very clear that foreign exchange investment is definitely not something that ordinary funds and institutions can participate in, otherwise it will not even be enough to pay interest on leverage.

Take the foreign exchange option mentioned by this middle-aged man as an example. Because the option fee of an American foreign exchange option with an underlying value of one million US dollars cannot be priced, a number is generally listed in proportion to the underlying amount. This number may become Tens of thousands, and once the expected exchange rate is not achieved, the money will disappear out of thin air.

  More importantly, even if the exchange rate fluctuates in the expected direction, but it does not reach the point of recovering the option premium, it is still a loss situation, but it will not be reduced to the point of total loss.

For example, a middle-aged Caucasian man bought sterling call options with a total target amount of 50 million U.S. dollars in the market. The exchange rate was set at 1 pound to 1.75 U.S. dollars, and the time period was three months. It may be relatively high, and the transaction price is set at 100,000 US dollars (American options cannot be priced, and the option price fluctuates at any time according to market expectations), then if the exchange rate of the British pound to the US dollar does not rise above 1.75, then these options will It will be void, and the $100,000 option fee will be in vain.

More importantly, in the options exchange, as the party who sells long options and the party who buys short options, they must pay corresponding margins to maintain the transaction without default. The fee is another considerable sum. Of course, if the option is not exercised, the deposit will still be refunded.

  Zhong Shi knew very well in his heart that if he didn't know the general trend of future generations, he might have lost money long ago.

   "I'm planning to go to New York to find opportunities there. I heard that the oil futures on the New York Mercantile Exchange are very active. Maybe I may make a comeback from here." The middle-aged white man touched the place where the check was hidden on his chest, and said a little out of his wits.

"Crude oil?" Zhong Shi was startled, remembering that the price of crude oil in later generations is often hundreds of dollars a barrel. It's too expensive now. If you can hoard a sum of crude oil now, your converted wealth will skyrocket at least five times by then.

The things that can preserve value in this world, besides gold and silver, are these non-renewable natural resources, just like copper, iron ore, crude oil, etc. in later generations, because of the increasing consumption and the reduction of storage, the price is soaring rose up.

  Inadvertently, Zhong Shi thought of the next investment hotspot.

"The leverage ratio of futures is relatively small, and the price of the crude oil market has fluctuated violently recently. As long as I can grasp it, I believe that investors will reinvest in me soon." The middle-aged white man did not notice Zhong Shi's behavior at all. Absent-minded, still chattering.

"Set up a fund that operates exclusively in the crude oil market?" Zhong Shi was really shocked at this time. The man in front of him seemed to be in a state of eagerness for success. He invested in options or futures, all of which were risks. High investment varieties, if one operation is not good, the whole game will be lost.

  However, he is smart and knows how to operate in the form of a fund, because no matter whether he wins or loses, he has a management fee to take.

"Sir, are you interested in investing in my fund? Maybe we can cooperate in some aspects. According to my plan, the initial fundraising of this fund is about 10 million US dollars. If you can invest, I can exempt three years How about the management fee?" Seeing that Zhong Shi was a little moved, the middle-aged Caucasian man lost no time in promoting his unestablished fund.

  He knew very well that he couldn't get along in Chicago at all, and the news of the fund's liquidation would soon spread to the rich in Chicago. When he arrives in New York, he revises his resume a little bit, maybe he can get a lot of money again.

  Looking at the young man in front of him, he couldn't help opening his mouth to sell, which is an occupational disease. Generally, when a hedge fund raises funds, it is usually the investment bank who leads the way. Only those hedge funds that have already made a name for themselves can easily bring in a large amount of funds.

  After experiencing the European exchange rate crisis, hedge funds suddenly became famous in the market, and all kinds of talents poured into this industry. Moreover, senior analysts from the investment banking department of Wall Street have established their own hedge funds.

But not all hedge funds can be successful. In fact, there are quite a few hedge funds that close every year. Even if some hedge funds make a lot of money in a certain year, they may not be able to control them well due to the expansion of their capital scale. Still can't escape the fate of being redeemed by a huge amount.

What this middle-aged Caucasian man did not expect was that the young man in front of him was not only a person with extremely rich investment experience, but also an investor in some of the most popular hedge funds. The annual meeting invitation letter sent from the United States every year, It made him a little busy.

   Thanks for the support of the monthly pass of the book friends, Napoleon! Thanks for the reward of Source of Life, One Night Dust! This Sunday, the author is going to add another chapter, otherwise I really feel sorry for the book friend a13702297 who voted to update again, thank you for your support!

  (end of this chapter)