The Son of Finance of the Great Age

  Chapter 54 Aftermath

  In Wall Street after the stock market crash in 1987, there was a rumor among hedge funds that a certain consortium from Hong Kong was looking for a hedge fund with good returns. It is said that this consortium has nearly one billion in cash.

   Now the entire hedge fund industry has become a sensation, and many big-name funds, including Quantum Fund, have inquired about the authenticity of this news to attract investment funds for themselves.

  For hedge funds, management fees and excess dividends are the basis for survival, and the larger the amount of the fund, the more the fund will earn.

  Generally speaking, when funds are invested in a hedge fund, they have to sign a contract that is much more stringent than that of public funds. One of them is 2-20, that is, a management fee of 2% per year and 20% of excess returns.

However, these are all based on the increase in the fund’s income compared with the previous year. If the fund has no income this year, then according to the agreement, you will not get a penny. If the loss is serious, some investors may even ask for redemption. back.

   Investors are the most realistic!

The news was released by the investment banking department of HSBC Bank under the instruction of Zhong Shi. When Zhong Shi deposited a total of 100 million Hong Kong dollars in cash into the account opened by HSBC Bank, the astute HSBC account manager immediately came to the door. Introduce your bank's wealth management business with a straight face.

The Hong Kong stock market is the one with the worst decline in the global market. On the morning of the 20th, the chairman of the Hong Kong Stock Exchange announced that the Hong Kong stock market would be suspended for four days after consulting officials such as the Financial Secretary and the Financial Secretary. It's number twenty-six.

  He did this, on the one hand, to give investors a period of time to digest the panic caused by the plunge in the US stock market, and on the other hand, for settlement considerations.

  As a result, as soon as the market opened on October 26, the Hong Kong stock market still did not escape the fate of the plunge. It even plummeted by more than 1,000 points in one day, and it fell by more than 30% of its market value, which was the largest decline in the history of Hong Kong stocks.

   Zhong Shi and Liao Chengde's futures sell orders naturally made a lot of money.

  December, when the delivery was approaching, Liao Chengde had earned hundreds of millions of Hong Kong dollars in his account. And Zhong Shi is even more terrifying, earning nearly one billion Hong Kong dollars from selling 10,000 lots.

   One billion Hong Kong dollars converted into U.S. dollars is less than 200 million U.S. dollars, which is not worth mentioning compared to what Zhongshi earned in the US market.

  Even so, it was enough for Liao and his son to worship him.

  Liao Chengde's intestines are about to regret. If he knew that the Hong Kong stock market had fallen so much, he should hold more sell orders. It's just that there is no regret medicine in the world, and he should be satisfied with the hundreds of millions of profits.

  After following Zhong Shi’s suggestion, Liao Chengde did not hesitate to convert the cash into stocks of large real estate companies and banking companies listed on the Hong Kong stock market, and nearly 20% of the funds were sold in real estate stores everywhere.

   Zhongshi’s profits were naturally processed in the same way. Most of the assets were converted into Japanese yen and invested in RB’s capital market, while a small part was invested in Hong Kong’s real estate market.

  In the case of the stock market plummeting, the property market in Hong Kong is like a frightened bird. Housing prices are falling rapidly, which is a good time to buy the bottom. Hong Kong's property market will experience ups and downs during certain periods of time, and housing prices are closely related to the stock market.

   And Liao Chengde, who sells properties everywhere, was also given the title of "real estate king" by the media. This title was originally placed on the bosses of those big real estate companies. It's just that Liao Chengde has a son who is very famous in the entertainment circle, and he is particularly conspicuous because of his wanton acquisition of buildings in the economic downturn, so he was given such a title.

In fact, most of the properties collected by Liao Chengde were collected by Zhongshi, but outsiders didn't know these ways, and they all counted these properties in the name of Liao Chengde. Finally, the Hong Kong media made a rough calculation and found that Liao Chengde was actually in several islands in Hong Kong. The real estate of more than 300 million yuan has been acquired, and some buildings have even acquired entire floors.

  As for Liao Xiaohua, he changed his routine, committed himself to an international accounting firm, and worked diligently as "jobs".

  However, his relationship with the entertainment industry has not been interrupted. From time to time, reporters will still take photos of him dating popular female stars.

  These are things for later.

  When he heard that the money was obtained in the Hang Seng Index market, the account manager of HSBC laughed and stopped promoting his wealth management. People like this who can achieve great success in the futures index will not be interested in the annual income of a few points in the wealth management department of the bank.

  After HSBC made news in the North American capital market, many North American hedge fund managers rushed to Hong Kong at all costs, hoping to get a share of this huge amount of capital.

  At this time, Zhong Shi has already returned to the mainland, and he has become a good boy at home, and all affairs in Hong Kong have been handed over to Zhong Yi. Naturally, for those famous funds in later generations, he kept a list, and even explained the corresponding investment shares clearly.

   On this day, two white men from the United States came. One of them was already very old, and even his beard was gray. The other one was also a middle-aged man in his forties, with anxiety on his travel-stained face.

  If people in the American mathematics field are here, they will realize that the old man is James Simmons, who once won the "Fields Medal", one of the former wizards in the mathematics field. In the past few years, James Simmons has stopped hanging out in the academic world, but has devoted himself to the business world and played hedge funds.

Renaissance Technology, which has recruited a large number of non-financial professionals such as mathematics, physics, and cryptography, opened a few years ago, and its annualized income is not bad. However, it is facing losses this year, and many of them have given up on The share of the company left Renaissance Technology with cash.

  James Simmons felt desperate for a time, and even thought of disbanding Renaissance Technology, but when he heard that there was a consortium in Hong Kong looking for investment targets, he seemed to see a glimmer of light in the dark, and rushed to Hong Kong impatiently.

When seeing this young potential investor with a handsome face, Simmons's heart tightened. He thought there was nothing to do, but Zhong Yi just exchanged a few words and happily invested 5,000 in their fund. Ten thousand U.S. dollars.

  Zhong Yi just voted for Renaissance Technology according to Zhong Shi's order before leaving, but what Zhong Yi didn't know was that he missed the best opportunity to enter the "Medal Medal" fund.

The "Grand Medallion" fund is a fund specially opened to insiders of the fund by Renaissance Technology. It only manages the assets of insiders. However, in this year, Simmons also has the idea of ​​​​receiving external funds. Who would have thought that the other party would not be in the contract. He caressed about every detail, but after a cursory look, he signed it happily.

   In this way, Zhongshi's funds unfortunately missed the "Medal".

  Hedge fund managers from all over the United States came to Hong Kong in an endless stream. Some left disappointed, while others left happily.

  Among these people, Zhong Yi unexpectedly met an old acquaintance, that is Raymond Del Rio of Bridgewater United.

   It's a bit funny to say that when the two met, Delio couldn't recognize the well-dressed young man in front of him, and he just kept praising his fund for its high returns.

It wasn't until Zhong Yi interrupted his narration with a smile, and took the initiative to talk about his fate in BJ three or four years ago, that Delio realized that the benefactor in front of him was actually the one who received him in Huaxia. student.

  In just three years, the former boy turned into a funder who attracted the attention of the hedge fund industry. Such a change surprised Delio who had seen countless big scenes.

  Delio, who was indirectly instructed by Zhongshi, through public relations to the World Bank and General Motors and publicity in RB, now the funds managed by Bridgewater have reached as much as one billion U.S. dollars.

  According to Zhong Shi's instructions, Zhong Yi invested 200 million US dollars in Bridgewater without hesitation. In this way, this fund became the share of the largest individual investor.

  Dairio was also overjoyed, and after some pleasantries, he left Hong Kong happily.

Zhongshi’s funds in the United States are about 900 million U.S. dollars, and after deducting the capital gains tax, there are still about 800 million U.S. dollars. After investing in the U.S. capital market and buying a lot of super cheap bull stocks, there is still at least 700 million U.S. dollars in cash left .

  Quantum Fund also sent people here, but it wasn’t Soros who came in person, and Zhong Yi happily invested 100 million U.S. dollars in it.

  Countless well-known hedge funds in later generations have either visited in person or sent people over, and they are willing to invest funds in these hedge funds in different proportions according to the instructions left by Zhong Shi.

Tiger Fund, Caxton Hedge Fund, Tudor Futures Fund, Moore Capital Management, Farallon Capital Management, and even David Shaw, the founder of Shaw's Hedge Fund, which is still under planning, also came to the door, and Zhong Yi agreed. Once invested.

   After more than two months, all 700 million capitals have found their next home, and Zhongshi has also completed Zhongshi's largest deployment in the hedge fund industry.

In fact, many hedge funds will close when they reach a certain amount, and it is difficult to enter in this situation. Only in times of crisis, those hedge funds will open, because at this time, what they are most afraid of is investors massive redemption.

Investors who are still willing to inject funds at this time have a lot of leverage to bargain, but Zhong Shi did not do so, because he knows that these hedge funds will have more money in the next few years or even decades. Pretty high yield. Based on this alone, he has earned it.

   Now for him, it's time to take a leisurely vacation. The next time this opportunity comes, it will be in RB, where the bubble is getting worse.

  By the end of 1987, everything was arranged properly, and Zhong Yi also finished her first semester at HKU, and returned to her hometown where the temperature was a few degrees below zero in the south. It was the Chinese New Year!

  (end of this chapter)