My Age of Investment

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Countless individual and institutional investors flocked to Building 40 on Wall Street like pilgrims.

While they were enthusiastically subscribing to the new fund, they all unanimously proposed that they want to meet Xia Jingxing, get close to each other, build friendship, and strive to get more fund subscription shares.

However, they were unlucky. Xia Jingxing was no longer in the company at this time, so naturally he could not receive them.

In the large one-story mansion in New York's Central Park, sunlight fills the study.

Xia Jingxing hung up Lou Wei's call, then picked up the pen on the table and marked heavily on the paper document.

China Investment Group invested US$1.5 billion and withdrew a total of US$4.88 billion with principal and interest, resulting in a net investment return of US$3.38 billion.

This rate of return is not too high, and compared with the return on investment obtained from waterfall investment, it seems a bit too low.

There was nothing we could do about it. Who let Gates get on the bus first?

Envision Capital officially launched its first round of fundraising for investment in subprime mortgage derivatives in 2006, raising a total of US$1.5 billion in external funds at that time. .

Among them, one institution, Light Falls Investment, invested US$500 million, accounting for one-third of the fund share.

After ending the short-selling of subprime mortgage derivatives in 2007, the first phase of the short-selling operation, the size of this US$1.5 billion external fund has expanded to nearly US$11.1 billion, with profits of nearly US$9.6 billion.

Since then, the US$11.1 billion has participated in the second wave of financial short selling, and the scale has further expanded to US$46.1 billion.

After deducting more than US$1 billion in management fees and US$1.5 billion in principal, the fund's net return reached US$43.6 billion.

According to the signed fund income sharing agreement, 35% of the income goes to GP Vision Capital, and the other 65% goes to LP.

Therefore, LP received a total of US$28.34 billion, one-third of which was attributed to waterfall investment. The approximate figure is approximately US$9.45 billion, plus US$500 million in principal, so Gates received a total of approximately US$100 with interest. 100 million US dollars, I am so happy!

Compared with waterfall investment, CIC missed the first stage of shorting subprime mortgage derivatives due to its late investment time, and its income was greatly reduced.

However, after completing the fund raising work, Vision Capital did not let these funds idle. After half a year of operation, when entering the second round of financial short-selling operations, the scale of CIC's US$1.5 billion special investment fund had expanded to US$1.65 billion. Dollar.

After ending all investment activities last month, the size of CIC's special investment fund has grown to US$6.85 billion.

After deducting management fees of approximately US$150 million and principal of US$1.5 billion, the net return figure was US$5.2 billion.

Then according to a 65% share ratio, CIC will receive US$3.38 billion.

In addition, it is worth mentioning that the special investment fund established by Vision Capital for puppies has achieved a very good rate of return.

Xia Jingxing lowered his head and glanced at the document in his hand. There was a column clearly written on it:

The Xiaogu Family Office invested US$100 million and received a total of US$1.173 billion including principal and interest, with a net investment income of US$1.073 billion.

Xiao Quan was very lucky. After being reminded by Xia Jingxing, before the primary loan bubble was completely exposed in 2007, he sold off all the CDO assets and a small part of the real estate, and collected about 100 million US dollars and handed it over to Envision Capital Management. , barely caught up with a good opportunity to short subprime mortgage derivatives at halftime.

After the subprime short-selling operation ended, the US$100 million had turned into US$430 million. When the second phase of the global short-selling operation ended, the size of the Puppy Special Investment Fund further expanded to US$1.787 billion.

After deducting management fees and principal, the net return of the fund is approximately US$1.65 billion, of which Xiaopou can obtain 65%, or US$1.073 billion.

Xia Jingxing took another look at the returns on several funds raised before the second wave of financial short selling.

It's a bit low, and it's at the bottom of all the funds on the report.

At that time, Vision Capital raised a total of US$5 billion from various blue-blood aristocrats, plus US$430 million from the Puppy Special Investment Fund, US$1.65 billion from the China Investment Group Special Investment Fund, and US$11.1 billion from Waterfall Investment. dollar fund...

and Xia Jingxing’s personal own funds of US$13.6 billion, totaling approximately US$32 billion.

This US$32 billion is all the funds involved in the second wave of financial short selling.

Among them, Xia Jingxing’s own funds are 13.6 billion US dollars, and 10.6 billion US dollars are investment profits from Clary Capital, which is the fund managed by Peter Thiel. After shorting subprime mortgage derivatives, the scale of funds has The principal amount expanded from US$1.5 billion to US$10.6 billion.

Afterwards, Xia Jingxing felt unsafe and pledged various equity assets to borrow US$5 billion from Goldman Sachs and Morgan Stanley.

Of the US$5 billion, after US$1 billion was allocated to Greenlight Capital and US$1 billion to Renaissance Industries, only US$3 billion was left.

Including the US$10.6 billion in funds, the total is US$13.6 billion in self-owned funds, accounting for 42.5% of the total short-selling funds of US$32 billion.

The main capital of the second wave of financial short-selling operations has always been only 20 billion US dollars. After the TRS leverage tools of the two major investment banks amplified the funds, it became 60 billion US dollars.

Of the US$60 billion, Xia Jingxing allocated US$20 billion each to Liu Hai, Jiang Ping and Li Yaozu, respectively shorting US stocks and options, US stock indices and derivatives, European stocks and related derivatives, and shorting the public.

In addition, there are 12 billion US dollars of funds that have been used as reserve accounts to support the three major trading teams from time to time.

Just before the financial tsunami broke out, Vision Capital transferred US$10 billion from its reserve account to short the Lihuangtai family, earning a small profit of US$5 billion.

Therefore, the profit figure of 108.2 billion calculated by Abel in the Caribbean that day was not accurate. It only reflected the entire investment profit of Vision Capital last year, but it was not the corresponding profit of the 32 billion US dollars.

The funds liquidated this time only include the US$32 billion and its income.

The income part needs to deduct the US$3 billion in profits from short-selling SOHO and the three major real estate families in the Hong Kong Island market, the US$3.7 billion in profits from Jiang Ping's team's investment in the foreign exchange market, and the US$500 million in profits from the fund of funds managed by Abel. The remaining figure is $101 billion.

The principal amount was US$32 billion, and the net profit was US$101 billion. This is the main result of the second phase of the short-selling operation.

The blue-blood aristocrat invested US$5 billion in principal, and the corresponding profit was US$15.781 billion (50÷320×1010), leaving US$15.5 billion after deducting management fees.

In addition, when the blue-blood aristocrats invested, Vision Capital happened to increase its income sharing rate once, from the previous 35% to 40%, so LPs could only receive 60% of the income, or a net return of US$9.3 billion.

With an investment of US$5 billion, the net profit was US$9.3 billion in just over a year.

The major blue-blood families are already very satisfied with this return on investment.

In fact, they did not know that the funds they invested in were the ones with the lowest returns among the many funds managed by Vision Capital.

The net investment return rate of less than 200% is lower than the 225% of the CIC Special Investment Fund, the 1073% of the Puppy Special Investment Fund, and far lower than the 1890% of the waterfall investment.

This net return on investment is actually directly proportional to the morning and evening you get on the bus.

The earlier you get on board, the higher the net return on investment.

Moreover, the blue-blood aristocrats have caught up with the rising capital rates of Vision, which is also a major reason for the decline in net return on investment.

Xia Jingxing gently put the documents aside and began to calculate the results of his investment.

His income is mainly divided into two parts, profit sharing from his own funds and external LP management fees and profit sharing collected by Vision Capital.

In terms of income sharing from his own funds, the combined income of the US$1.5 billion in principal he invested more than two years ago first expanded to US$10.6 billion, and then he borrowed another US$3 billion in principal.

By the end of all investment activities, the US$13.6 billion had become US$56.525 billion.

Excluding the principal of US$4.5 billion, the total profit was US$52 billion.

This figure does not deduct fund management fees and GP income sharing, because Vision Capital is his wholly-owned company, so it does not matter whether it is divided or not.

As for external LPs, Envision Capital created a total of US$58.075 billion in profits for LPs in the second phase of short selling, and nearly US$10 billion in profits in the first phase of short selling.

Adding up the two revenue shares and related management fees, Envision Capital can collect US$26 billion.

In other words, 58 billion plus 10 billion minus 26 billion equals 42 billion US dollars. This is the net income that Gates, CIC, Puppy, Blue Blood Aristocrats and many other external LPs can get.

The US$52 billion plus US$26 billion is the majority of the results of Xia Jingxing’s efforts in the past three years.

The reason why it is said to be the majority of results is because it does not include the gains from private investment in Paulson Fund and Greenlight Capital, nor does it include the HK$13.7 billion gained from selling Penguin shares to short SOHO and the three major companies. Real estate family’s net income of $3 billion.

In addition, the parent fund managed by Abel and the two foreign exchange funds managed by Jiang Ping also each made profits. However, because the funds were not liquidated at this time and only collected management fees as usual every year, statistics are not made for the time being.

In short, no matter how he calculated it, Xia Jingxing gained enough benefits from this financial operation that lasted for three years.

Excluding principal, the net investment income of its own funds, the profit sharing of Vision Capital and management fees have steadily exceeded US$80 billion.

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