My Age of Investment

"Bad sound?"

Xia Jingxing looked at Abel, frowned and said, "What bad sound?"

"Paulson Fund made $15 billion this year, Clary Capital made $14 billion this year, Goldman Sachs' proprietary trading unit made more than $6 billion, and Vision Capital's Xiaoxue No. 1 and Xiaohan No. 1 funds made a total of Around US$5 billion..."

Abel counted the major subprime debt short positions this year on his fingers, and then changed the topic: "However, Merrill Lynch lost US$7.9 billion in the third quarter, and Morgan Stanley lost US$9.4 billion in the fourth quarter..."

Liu Hai smiled and said: "I'm willing to admit defeat. Since I have chosen to bet against others in the subprime debt market, I must be prepared to lose money.

If we lose, then the financial reports of several of their institutions will be very good, and the stock prices will rise sharply. "

Abel nodded slightly, "That's right. When organizations fight against each other, there is no question of who is innocent.

However, the property market has deteriorated across the board and loan default rates have skyrocketed, resulting in a large number of homeless people.

Banks and various credit institutions have taken away their houses, and many people can only take their families to pitch tents in the park or sleep in their cars.

I don’t know which peer who lost his mind and posted the estimated short profit list online.

Now all these homeless people have gathered online to denounce Wall Street short sellers. They believe that these financial capitalists who have made huge profits have caused their family to live on the streets. "

"joke!"

Liu Hai sneered: "The only thing to blame is that the government's credit environment has been too loose in recent years, and all cats and dogs can get loans.

The banks and other credit institutions that securitized subprime mortgage assets were also culpable, and the investment banks that underwrote these bonds caused heavy losses to investors around the world.

Of course, low-income homebuyers are indeed victims of the subprime mortgage crisis.

However, don’t forget that they didn’t have a house a few years ago? A proletarian!

Since you never had it in the past, how can you talk about losing it? Just think of it as a dream! At least I don’t have to pay rent to live in a big house for a few years. "

Abel shook his head and laughed, "If the people at the bottom had this wisdom, they would not stay at the bottom. They are the least thinking people and the easiest to be incited.

At present, the voice of online condemnation is not too loud, the impact is limited, and no offline rallies have been launched.

But if the property and financial markets continue to deteriorate like this, I believe something will happen sooner or later.

I don’t mean anything else by saying this. I just want to give the company a reminder to find ways to get out of this growing whirlpool of public opinion as soon as possible. "

Speaking of this, Abel took a deep look at Xia Jingxing and said in a deep voice: "Especially our Vision Capital, we are an anomaly in the eyes of many old white men on Wall Street. Those gamblers who lose money are very hostile to us. If we lose, Give it to a white-controlled financial institution and they might not do that.”

Liu Hai was angry, but what the other party said was true and could not be refuted.

Jiang Ping frowned and remained silent.

Xia Jingxing was calmer than the two of them. He nodded slightly towards Abel and said with a smile: "Your discovery and reminder are very good. We really need to find a way to escape from this whirlpool of public opinion."

Liu Hai asked: "How to escape?"

Xia Jingxing already knew this: "Whoever makes more money can attract the public's attention to them."

Liu Hai's eyes lit up and he clapped his hands and said, "This is great! Paulson has achieved both fame and fortune now.

You know, last year his fund only had an asset management scale of US$1 billion, which was not as good as ours. Now it has expanded into a behemoth with an asset management scale of US$28 billion. "

Speaking of this, Liu Hai's eyes were full of envy, "Paulson's first short-selling fund was only a few hundred million dollars in size, not even a fraction of ours.

But they continue to announce their performance, and countless funds are pouring into the Paulson Fund, which can collect US$5.6 billion every year just by collecting management fees.

If our results were announced, Vision Capital's hedge fund asset management scale would probably have exceeded US$50-60 billion. "

"You want me to die!"

Xia Jingxing said angrily, "If all profits were superimposed on Vision Capital, our company's revenue this year would be US$25 billion. Paulson would have to thank you!"

Liu Hai smiled and said, "That guy Paulson is probably in pain and happiness now."

Jiang Ping nodded lightly and then said: "The outside world speculates that we have earned US$5 billion. Although it is not the company with the best performance this year, it is still eye-catching enough.

As a result, the fundraising work for several of our new funds has gone much smoothly. "

Abel smiled and answered: "And the fee rate has been increased. The excess income share has increased from 35% in the past to 40%. Even so, it cannot resist the enthusiasm of LPs to subscribe.

As of now, the New York office manages a total of 9 funds, including two hedge funds of funds, and the actual asset management scale has exceeded US$32 billion. "

Speaking of this, Abel spread his hands, "But unfortunately, the US$10.6 billion returned by Clary Capital has to be transferred out, and the funds remaining in the Vision Capital system are only about US$21 billion. This number has just reached the threshold of the top ten hedge funds in the world.”

Xia Jingxing smiled. The money from Clary Capital was all his own. The first phase of shorting subprime mortgages was over, and of course it would be transferred away.

In addition, Paulson Fund has more than 2 billion US dollars undelivered including principal and interest, all of which belong to his personal income and have not been transferred in or out through Vision Capital.

After deducting the money from Clary Capital, the US$21 billion managed by Vision Capital is all LP's money. About half is the initial principal invested by LP, and the other half is the profit earned for LP.

From a certain level, Vision Capital's current development is truly on the right track. Xia Jingxing no longer needs to be entrusted by himself. He uses other people's money to engage in high-risk investments. Regardless of profit or loss, he can make profits every year. Hundreds of millions of dollars in management fees.

This management fee alone can cover the daily operations and R\u0026D expenses of the New York office.

"How is the operation of the Daxue No. 2 hedge fund of funds?"

Xia Jingxing looked at Abel with a smile on his face. Not long ago, the other party proposed to raise a US$10 billion hedge fund of funds, but he rejected the plan and changed it to raise US$500 million.

Moreover, these US$500 million cannot be invested in any internal funds, and there cannot be any fraud. You must find excellent external fund managers, such as Paulson. If you find one, you can make money directly.

Looking at the boss's joking gaze, Abel said with a smile: "The market is now very volatile, hedge funds with poor performance have gone bankrupt, and funds are pouring into leading hedge funds, such as Bridgewater and Paulson Funds.

Vision Capital is about the same size as them, so we can’t invest in them, right? People don’t dare to take our money. "

Xia Jingxing nodded lightly, "That's true, but my request is that you discover excellent fund managers just like VCs discover entrepreneurs. The worse the market environment, the easier it is to find gold."

Abel scratched his forehead. He had indeed underestimated the difficulty of this matter, because excellent fund managers have no shortage of LPs, and everyone is rushing to invest money; while funds lacking LPs often have poor performance, and they dare not invest blindly. .

If you invest blindly, it will damage the brand credibility of Envision Capital.

He originally wanted to collect management fees through the fund of funds, but it turned out to be a hot potato.

Xia Jingxing saw Abel's predicament and stopped embarrassing him. He sighed: "I've said it before, this hedge fund of funds is not easy to do. Doing it at this stage will simply lower our qualifications. There are people who are better than us." A better fund?

But after raising funds, I have to finish my investment even if I cry. Let’s treat it as an exploration and attempt.

If you can't find a suitable sub-fund here in New York, go to Hong Kong and look.

There are many excellent hedge fund entrepreneurs there, and the financing environment is far less friendly than in New York. It should be very much in need of the help of fund of funds. "

After joining Vision Capital, Abel also signed up to learn Chinese for a few years. He knew what it meant to provide help in times of need, and he quickly nodded in agreement.

"By the way, how is the fundraising for that US$5 billion PE fund going?"

This was the task Xia Jingxing gave Abel in Hong Kong.

In order to regain his performance, Abel nodded fiercely and said with high spirits: "It went very well. Now Ali's market value has risen so high. After seeing our return on investment, many institutional LPs have expressed their appreciation for our investment level and vision. highly rated.

Half of the funds have been raised so far, and it should be completed in another month or two. "

Xia Jingxing smiled lightly: "Then you have to hurry up, Ahli's stock price won't last long."

Abel's smile suddenly faltered. He didn't ask for the specific reason, but seeing that the boss's tone was so firm, it was definitely not unfounded, so he nodded to express that he remembered it and would speed up the work progress.

Xia Jingxing turned his attention to Liu Hai and Jiang Ping and asked about several funds investing in stocks and foreign exchange.

These two investment varieties used to be the largest asset allocation of Envision Capital's New York office. However, with the large profits generated from investing in subprime mortgage derivatives, these two investment varieties account for an increasingly smaller proportion of the total asset management scale.

But this is abnormal. Shorting subprime mortgages is just a temporary move, and he will return to these two investment types in the future, so Xia Jingxing still attaches great importance to old products.

"The financial market is too volatile. You can only go short first, then wait until it hits the bottom, and then go long."

Speaking of this, Liu Hai took a long breath: "Leave aside the two parent funds of Daxue No. 1 and Daxue No. 2, as well as the special fund specially established for puppies.

The US$3 billion stock strategy fund I manage, Lixia No. 2, and the newly raised US$1 billion event-driven strategy fund Xiaoxue No. 2 are now all short positions. "

Jiang Ping answered: "My side is better. The asset management scale of Xiaoman No. 1 is US$1.8 billion and the asset management scale of Xiaoman No. 2 is US$1 billion. These two funds mainly invest in the foreign exchange market, and the funds are still somewhere to go.

But another fund, Xiaohan No. 2, like Xiaoxue No. 2, has nothing to do with US$1 billion, so it can only short the stock market first. "

Xia Jingxing nodded slightly to express his understanding.

He will not redeem the money from the Paulson Fund for the time being.

Even so, the amount of cash he and Vision Capital hold is a very large amount.

Clary Capital’s US$10.6 billion, plus the more than US$21 billion from all LPs of Vision Capital, totals about US$32 billion.

Excluding the more than 2 billion US dollars invested in the foreign exchange market, there are nearly 30 billion US dollars available for free choice of investment varieties and investment opportunities.

Such a large amount of money cannot be kept in the bank for a long time. You need to find a good investment channel, or start the second stage of short selling.

The first stage is subprime mortgage derivatives, so the second stage should be...

Xia Jingxing recalled what Paulson had told Soros and asked, "What do you think of Soros's proposal?"

Liu Hai and Jiang Ping looked at each other and nodded, "It works!"

Xia Jingxing took a deep breath and punched the table, "Then do it!"