The Son of Finance of the Great Age

  Chapter 201 Prep Financing

   As for Tianyu Fund, a total of nearly 20,000 long positions were closed on this day, and the profit on the account reached 250 million US dollars. There are still 5,000 positions left. Most of these positions are newly opened in recent trading days to raise copper prices. The dates are concentrated in December and January, and the average price is relatively high.

  Sumitomo Trading Co., Ltd. added 10,000 lots of positions this day, making their positions reach 45,000 lots, which is already the largest long position in the entire market. However, because they previously had a large position at a low position, even if the new position price in these two days is not low, the average price of the entire position did not exceed $2,800.

   In other words, they are currently earning close to $500 per contract, and the profit of the entire position so far is around $220 million. This is also their second highest profit this year, and what they have to do now is to gradually clear these positions.

  However, for Sumitomo Corporation, it is obviously impossible to clear this part of the position. Because firstly, they are players in the metal futures market, and need to hedge in the financial futures market for many years, but now they have deviated from their original intention of hedging, and instead manipulate the market price; Short positions that are against them will not agree, because once the position is closed, the market price will fall, which is not worth the loss for the short positions that mainly focus on hedging.

  So they can only gradually shift their positions to other months, and gradually control their positions in the process. The process of building a position may take several weeks or even months, so it is inevitable to keep the price of copper futures high during this period.

In fact, what happened later also proved this point. As almost the only bull in the market, Sumitomo Trading Co., Ltd. fought against the short side in the copper futures market, and the stalemate lasted for more than half a year. In the case of high copper prices, Sumitomo Corporation still relied on its own efforts to maintain the copper price above 2,750 US dollars, and even the short-selling party planned to give up. However, due to the dual pressure of the US Securities and Exchange Commission and LME, Sumitomo Corporation was forced to Abandoning Binzhong Tainan led to the largest loss in the capital market.

  In the following two or three trading days, copper futures prices began to enter a downward channel after undergoing a slight adjustment. However, due to the fundamentals not changing and the impact of the strike in Chile, copper futures prices did not fall below $2,950. After a few uneventful trading days, the bears also realized that it is impossible to suppress the price of copper futures to $2,800 or even lower in the short term, and they began to plan to flatten the trading peak in November. positions, and turned to fight with the bulls on contracts of other months.

But all of this has nothing to do with Zhong Shi. After the market closed on Friday, Zhong Shi took a plane back to Hong Kong. The finishing work was left to a few traders who stayed in London. Clear out all positions at a higher position, and then sell the 100,000 tons of spot copper at a higher price.

  Back to Hong Kong, Zhong Shi only had a week's rest before starting to work in the office of Tianyu Fund. This time he was not doing anything else, but borrowing money!

  In the office of Tianyu Fund, the large floor-to-ceiling windows can see the scenery of the entire Hong Kong Island, and even the busy scene of the pier in the distance when the weather is clear. Zhong Shi lay on the comfortable sofa chair half-closed, looking half-asleep and half-awake, but he was thinking about the next investment plan quickly in his mind.

"Bonds... This is fine, but the US interest rate hike cycle is not over yet. According to the historical process, this rate hike cycle will be at least until March next year. However, it is also possible to build positions now, because with the development of the US economy, the market is interested in The need for financing is also growing, which can offset the adverse impact of rising long-term bond yields due to interest rate hikes. Well, let’s do this and start buying US bonds.”

"By the way, there are still 10,000 short positions in the treasury bond market. Although there is still a possibility of profit, but at this time, there is no need to continue to hold it. It is better to close it." Thinking of this, Zhong Shi dialed the internal number of the fund.

  Although Zhong Shi did not pay attention to these positions during this period, Tianyu Fund has been paying attention to this investment and reporting to Zhong Shi from time to time. However, these positions have been in a profitable state so far, and Zhong Shi just glanced over the relevant reports every time he saw them.

   "Mr. Zhong, I don't know why we are called this time?" After the managers of Tianyu Fund gathered in the spacious conference room, Maxim couldn't wait to ask.

During this period, Maxim was very proud of the spring breeze. His fund achieved a return of 22% in the past six months, while the S&P 500 index rose by less than 1% during the same period. This was mainly due to Maxim's grasp of Only a few financial stocks related to interest rates have performed so well.

Maxim had invested in the Japanese market for a while, but when the Federal Reserve announced a rate hike, he immediately keenly realized that there should be greater opportunities in the U.S. market, so after applying to Zhongshi, he switched to the U.S. market Fortunately, he switched the market in time to achieve the current results.

The other two Satou Tao and Gu Shizhong, who are mainly engaged in the Japanese market, have similar investment performance, and only 5% of the performance so far. This performance is already quite good in the current increasingly depressed Japanese capital market, so Zhongshi also Did not say anything.

Except for Maxim's fund, the performance of other funds investing in the European and American markets was not very good, and there was even a 10% loss. Although the market faced a relatively large systemic risk this year, the business was For business, Zhong Shi has let the fund manager named Christian Ann leave.

"Everyone, there is a very good investment opportunity recently, and it is necessary for me to inform you." Zhong Shi didn't answer Maxim's question immediately, but brought up another topic unhurriedly, "Everyone, He is a senior manager of our fund. I believe he must have a good understanding of the internal global macro and commodity performance. If you are not clear, I can say here that after two operations in the copper futures market, we A total of $500 million in proceeds has been reaped."

"In addition, there is also a return of 200 million US dollars in the US bond market. Now there is also a 2% return in the Hong Kong bond market. This part is about 14 million US dollars. Now the net value of my fund is around 1.91, that is to say , I doubled the global macro and commodities fund in less than a year."

"In fact, the total net value of this fund has exceeded 2, because I didn't count the short positions of U.S. bonds that are still in position. The current profit of this 10,000 short positions should be around 110 million U.S. dollars. Now the U.S. 10-year long-term The price of treasury bonds is at 95-16. I don’t plan to continue to hold this part of the position, and I will close this part of the position when the U.S. opens.” Zhong Shi nodded at Maxim while talking. Maxim is in charge of the operation of the position, and he is also most familiar with the profit situation. When Zhong Shi said the specific value, he did not open his mouth to refute, because he knew that what Zhong Shi said was true. Although he disapproved of Zhong Shi's desire to close the position, he knew that it was not up to him to decide.

"The reason why I say so much is to convince everyone that my investment ability is not inferior to yours!" Although Zhong Shi said it politely, all fund managers know that Zhong Shi's investment ability is far superior to those present. above the crowd. Not to mention the size of the fund, the current 100% rate of return alone is enough to make everyone here feel ashamed, let alone a fund with a fund size of up to 1 billion US dollars.

Maxim was the first to stand up, and said very respectfully: "Mr. Zhong, your ability is superior to all of us. This is a recognized fact. I believe everyone here has no doubts. Just say it." , what good investment opportunities have emerged recently?"

   "Currency crisis, another currency crisis!" Zhong Shi slowly looked around at the managers present, nodded in satisfaction, and then said something that shocked everyone.

  Currency crisis, this word is too scary. Even though it has been more than a year since the European currency crisis, the first reaction of most financial practitioners after hearing this word is still shocking. What happened in 1992 and 1993 is still vivid. The order of the entire financial market was in chaos, and some people even felt that it was the end of the world.

Maxim was extremely calm. First, he was an American, so he had no worries about the currency crisis at all. Second, it was because of his adventurous spirit, which was both a crisis and a A huge opportunity, especially for an enterprising fund manager like him.

"Tomorrow, I will call the executives of HSBC, Chase Bank, Standard Chartered, Bank of America and other banks. I will use the current funds to borrow money. As for the amount, the more the better, and this part of the funds is mainly in US dollars. For these, it depends on which one has the lower interest rate. Also, the conditions can be appropriately relaxed for those banks with good business in South America." Zhong Shi did not answer Maxim's question, but went on one after another order.

   "Standard Chartered still needs to rely on their channels and focus on their research, because their business in South America is obviously ahead of HSBC. I have sent Andrew to Brazil first, where he will be in charge of front-line operations."

"Mr. Zhong, are you going to short the Brazilian real?" Gu Shizhong was the first to speak this time. He is most familiar with the South American market. He knew that in July, Brazil just issued a new currency called the real. , and the exchange rate with the U.S. dollar is set at 1 reais to 1 U.S. dollar.

  (end of this chapter)