The Son of Finance of the Great Age

  Chapter 507 has other plans

As soon as the news that the Everlasting Flower Fund suffered a huge loss came out, traders in the entire market turned into vultures, pecking at the dying giant elephant of the Everlasting Flower Fund, and waving it around don't go.

   This is a normal trading logic. After learning that a certain fund is in crisis, not only their positions in crisis, but even other investment portfolios may become the targets of attack. Just like some time ago, a well-known emperor-level figure in the bond market switched jobs, and the first reaction of the traders was: Who knows the position of the club he worked for before, we will attack them!

  But the reason why the market is said to be complicated is that when this view is almost one-sided, some people will find the possibility of profit from it, and it is reversed.

  Kenneth Griffin is such a role.

   While studying at Harvard University, Griffin suddenly became interested in investing, so he set up two funds in his dormitory and started his career.

  After successfully obtaining a degree, Griffin began to devote himself to the fund industry. With his extraordinary talent and keen grasp of the market, Griffin soon became famous and became one of the most popular analysts among investors. After only working for others in the fund industry for two years, Griffin started his own business and used the raised US$4.2 million to establish his own hedge fund, named Base Camp Investment Group. He was only 22 years old that year.

Since then, Griffin has entered the fast lane of smooth sailing. In fact, his fund has hardly suffered any losses in the past few years, and it has basically continued to make profits every year. A rising tide lifts all boats and successfully entered the ranks of billionaires.

  Different from most funds, the investment philosophy of Griffin’s Base Camp Fund is different from the orthodox investment philosophy. He doesn’t care about value investing, the macro economy, or the so-called fundamentals. What he cares about is price fluctuations, capturing the possibility of investment through subtle changes in prices, and looking for the possibility of making money through a large number of mathematical models. From this perspective, he has similarities with Renaissance Technology and Shaw's hedge fund.

  Base Camp Fund is a leader among quantitative investment strategy funds. Inside them, there are all kinds of professional talents such as mathematicians, physicists, astronomers and even PhDs in computer research. Someone once claimed that Base Camp Investment Group is a technology company first, and a hedge fund second. This shows how powerful this fund is in terms of technology and mathematics.

  On Monday morning, Griffin was still exercising on the treadmill in his office. At his level, it is enough to hand over the specific work to his subordinates. He only needs to control the direction and keep an eye on market trends.

This treadmill is very interesting. It looks like an ordinary treadmill on the outside, but in fact, the screen in the middle is connected to a computer, which is convenient for Griffin to receive emails at any time. Switching to another interface is the most important part of running. kinds of data.

  Although he does not need to do it himself, Griffin is still a workaholic and often writes some complex code, so even when he is running, he must always keep in touch with the market.

   "What? There is a crisis in the No Withered Flower Fund, and it is a huge loss?"

  While running profusely in sweat, the screen indicated that he had received an email. After clicking to read it, Griffin’s pupils shrank suddenly. He was stunned by this news that shocked the market.

  The email was sent by the public relations department of the Base Camp Fund. In the content, they described in detail what happened to the Everlasting Flower Fund, including the rumors that they made a fortune in the market in the past six months. In addition to these, they also wrote:

"At present, we don't know how much the Brutal Flower Fund has lost, but judging from market rumors and real price fluctuations, the Brutal Flower Fund's natural gas position has lost at least 4 billion US dollars. This figure is extremely shocking. They Half the size of the funds under management. While none of this can be verified at this time, it is certain that they are in big trouble."

   "Whoa, that's a real mess, no one can go on with a half loss!"

  Griffin raised his eyebrows involuntarily, and after a moment of surprise, he continued to run. This is a part of the market. Different hedge funds fail or liquidate every day, and the Brutal Fund is just one of the larger ones. Therefore, Griffin didn't think too much about it while being surprised.

While running, a thought flashed through Griffin's mind like lightning, making him stop involuntarily, turn off the treadmill, and after reading the email carefully, he didn't care to change it. His clothes were soaked in sweat, and after wiping off his sweat a little, he made an internal call.

   "It's me, Kenneth, tell me in detail what's going on with the Flower Free Fund!" After trying to calm his breath, Griffin asked lightly into the microphone.

The person who answered the phone was Scott Laffer, the head of the public relations department of the hedge fund at the base camp. Facing the boss's doubts, he pondered his words for a long time before calmly replying: "It should be a 50% loss, maybe it's still a loss." There will be more."

   "How long did it take?" Griffin frowned, but relaxed it the next moment, and asked another question.

   "One month, at most one month, from September to the present." Scott covered the microphone and communicated with the people around him in a low voice for a while before giving such an answer. In fact, how long is it, except for the two parties involved, I am afraid that no one knows exactly when it happened. However, judging from the changes in positions and the disclosed figures, experts can calculate a vague time.

   This time is exactly the time when Zhong Shi and Hu Ping began to attack the positions of the Evergreen Fund.

   "..."

  Griffin didn’t ask any more questions. He remembered a major event that happened in 1998: Long-Term Capital Management, which gathered the best teams on Wall Street at that time, announced a default on Russian bonds, which caused violent fluctuations in the entire European bond market. However, the position of Long-term Capital Management was exactly the opposite of the market position, which eventually led to a complete collapse, and had to ask the U.S. Treasury Department to come forward and force Wall Street giants to buy their positions, which avoided a bigger crisis. Financial chaos.

  Buy? Yes, just buy it!

When thinking of this financial case that was also very sensational in history, the word "buy" suddenly jumped into Griffin's mind, and soon the idea grew uncontrollably like weeds, Griffin was keen Discovered the business opportunities that may be hidden in it.

   "The heads of all departments, go to the meeting room on the top floor for a meeting, that's right now."

  After hanging up the phone, he quickly sent an urgent email to all senior executives, then took a quick shower, put on a clean and brand new sky blue shirt, and rushed to the meeting room.

In this black and white conference room, a group of high-level executives from the headquarters had already sat in their seats. They hadn't figured out what happened, but after seeing the email sent by the boss himself, everyone realized There must be something important happening, so as soon as they arrived in the conference room, they began to communicate frequently in low voices, hoping to be prepared.

Griffin, dressed in a clean suit, had just entered the meeting room, and before he even had time to sit on the chair in the middle, he ordered loudly: "Call out two of the smartest and most capable analysts from each department, and collect the most comprehensive, The most informative data, I want to know, if we can buy the natural gas position of the Evergreen Fund!"

"what?"

"how can that be?"

  …

As if a drop of water had entered a boiling oil pan, the meeting room suddenly exploded, and almost everyone stared at Griffin dumbfounded. Although their expressions were different, there were only the following types of eyes: shocked, Shocked and puzzled.

  They already knew all about the huge losses of the Everlasting Flower Fund. Although it was a sensation in the market, it had nothing to do with them specifically, so it was passed as a talking point at most. Of course, they are very envious of those guys who can stand against the Everlasting Flower Fund. They have made a lot of money this time.

   But now, his boss actually wants to take the risk of going against the entire market to buy the natural gas position of the Bufaihua Fund. Doesn't he not know that this part of the position is currently coveted by the entire market? What the **** is going on here?

  In addition to Griffin, everyone's mind is full of doubts.

"Relax, guys, now we're just talking about an intention." Griffin just glanced at everyone's reactions, and naturally he needed to give a convincing explanation, "The specific situation still requires us to It's going to be a huge job, folks, the risks involved, the logic of the investment, the counterparty to the deal, where the money is raised from, whether our computer systems can handle it all, and so on. Time. Therefore, at present, we only need to provide a possibility and a willingness to the Everlasting Flower Fund, and we will act after we make various predictions and analyzes here.”

   "Hey, Kenneth, you don't want to take on these positions because you want to compete with Goodman, do you?"

Although a detailed explanation has been made, some people are still puzzled by the decision made by Griffin. One of them stood up and said, "You must know that we are a hedge fund and they are an investment bank. If you want to compare with them, there is no need to compete with the positions that will not wither, is there?"

As a proud Harvard undergraduate, Griffin has always been worried about not getting an offer from Goodman after graduation. He once said in front of many people that he must create a company that can compete with Goodman. Man Corporation is comparable to or even surpasses Goodman Corporation. Therefore, after thinking about the contact between the Everlasting Flower Fund and the people of Goodman Company, some people immediately thought of Griffin's complex.

"Why, they also had contact with the Everlasting Flower Fund?" Griffin was stunned for a moment. After getting the exact answer, he was not surprised but delighted. He clapped his hands vigorously and said excitedly, "Guys , then we must hurry up.”

  The audience was stunned.

  …

   "Mr. Zhong, they seem to... seem to have stopped selling and let the losses continue to expand."

  As soon as the market opened in the afternoon, Jiang Shan stared at the market carefully, and at the same time opened new positions without any trace, and slowly suppressed the positions of the Evergreen Fund following the market flow.

  But soon, he found that the frantic selling and liquidation of positions in the morning disappeared. In the March contract, except for some shorts who closed as soon as they were good, it was difficult to open long opponents. And in the morning, because of the frenzied liquidation of the Buweihua Fund, there was almost no difficulty in changing hands for short positions. Now, no opponent can be found for half a day.

  The reason for this situation is that the most likely reason is that the views on the market are one-sided, and the bulls are holding on. Because the bulls open fewer new positions, even if the bears attack blindly, the price only fluctuates between a small amount of closing positions and opening new positions.

   Thanks to the scumbag book friends who voted monthly! Thanks to book friend 150207044843224 for rewarding this book!

  (end of this chapter)