My Age of Investment

Chapter 838: Target

The early warning information released by HSBC and New Century Finance was like two bombs dropped on a calm lake. The housing market, which had been sideways for several months, finally splashed and began to fall slightly.

Fearing that the world will not be chaotic, the media began to launch various reports and express pessimism about the housing market.

Against this backdrop, the ABX composite index of subprime mortgage bond prices began to plummet. From a straight dive of 100 points a few months ago to more than 60 points, the bulls suffered a lot and the shorts made a lot of money.

At this time of panic, the conference room at 40 Wall Street was full of laughter.

"Daren, I am completely convinced. Your investment vision is better than mine."

Peter Thiel gave a thumbs up to Xia Jingxing who was sitting opposite him, convinced.

Originally, Peter Thiel was a little worried that shorting subprime mortgages for Vision Capital would give his Clarion Capital a bad reputation for heavy losses.

But now this worry has completely disappeared. The $1.5 billion fund managed by Cleary Capital has now bottomed out, reaching a scale of $1.8 billion, with a profit of more than 20%.

Xia Jingxing looked at Peter Thiel with a smile on his face. The cooperation between him and Peter Thiel was quite pleasant.

Some time ago, the situation was unclear, and the fund managed by Clary once lost 300 to 400 million U.S. dollars. Peter Thiel would nag him from time to time, advising him to be more cautious, so as not to end badly in the end.

Half of these words are reminders from the standpoint of friends, and half are notices from the standpoint of partners.

However, Peter Thiel still abided by the agreement between them and did not intervene in the operation of the fund at all.

Today, the fund has finally turned around, and Peter Thiel, as the nominal manager of the sub-fund, also came to their small celebration party.

"CDO and CDS markets are not volatile at present. Our main profit comes from shorting the ABX index. Next, we need to observe more and pay attention to market trends."

Liu Hai also expressed his opinion, but he was cautious about the presence of Peter Thiel, so he deliberately said it conservatively.

Peter Thiel didn't hear the implication at all, and asked with a frown, "What do you mean, the subprime derivatives market may still have waves?"

Liu Hai said with a serious expression: "No one can guarantee this. After all, housing prices have been strong for so many years, and some fluctuations are very possible. We have to be patient and cautious."

Peter Thiel murmured in his heart. Could it be because he was afraid that he would follow suit and said so on purpose?

Thiel is not only an entrepreneur, a venture capitalist, but also a hedge fund manager. His first job in his career was a financial derivatives trader.

Possess basic financial literacy,

At the same time, after closely observing Xia Jingxing's operations, Thiel gradually changed his views on the subprime mortgage market.

He didn't think shorting subprime mortgages was a good choice at first, but now he thinks it's really good.

He had a hunch that the crisis was still brewing, and bigger things would happen next.

Xia Jingxing spent billions of dollars shorting subprime mortgages, which indirectly confirmed his guess.

After a few people exchanged ideas about the next plan, Liu Hai and Jiang Ping left the meeting room.

Peter Thiel didn't leave. He sat in his seat. After thinking for a long time, he looked at Xia Jingxing and said, "Daren, I also want to short the subprime mortgage."

Xia Jingxing guessed that Tier had something to say to himself when he stayed, but he didn't expect it to be this matter, so he replied without hesitation: "Do it for you!"

"I need to ask your permission first."

Peter Thiel looked at Xia Jingxing with a sincere expression, and said, "You entrusted me to help you manage the fund, although I didn't do the specific operation, but I also witnessed the whole process from the sidelines.

In a way, you are my teachers.

Now I want to use the skills you taught me to short subprime mortgages. If I don’t ask for your approval in advance, it would be too immoral. I can’t do this kind of thing. "

Xia Jing was having fun, and met a modest gentleman?

"It's okay, the market is huge, you can go short if you want, but you have to think carefully, I don't take any responsibility."

Peter Thiel said with a smile: "I have thought about it clearly, and if there is any problem, I will take all responsibilities independently.

Thank you Darren for being such an open minded person. "

Xia Jingxing said in his heart, I have a hammer.

The reason why he agreed so happily was because he couldn't stop Peter Thiel's behavior. Instead, he might as well go along with the flow and change favors.

In addition, Peter Thiel's imminent move is actually within his expectations, and he even hopes that Peter Thiel will invest in subprime mortgages on a large scale, the bigger the better, just to cover the actions of Vision Capital.

Whoever wants the title of "Subprime Short Selling King" can take it, anyway, he doesn't want it.

"Oh, by the way, Darren, I decided to cancel the fund management fee we set before, as a reward for you."

Xia Jingxing was a little surprised. He had previously drawn up a cooperation agreement with Peter Thiel, handing over 1.5 billion US dollars to Clary Capital Management, borrowing their name, and not paying a share of the revenue, but he would pay Clary every year. Rui Capital 2% management fee.

It’s not a lot to calculate, at least 30 million US dollars a year. If the fund makes a lot of profits and expands rapidly, the management fee will be even more.

With such a large amount of money, Peter Thiel said no, he didn't want it, it seemed that he was too arrogant.

However, Peter Thiel's next words cleared Xia Jingxing's doubts.

"I hope that Cleary Capital and Vision Capital can reach a cooperation. In terms of subprime mortgage investment, we can exchange information and advance together."

Xia Jingxing gradually remembered that Peter Thiel had taken a fancy to my investment vision and wanted to sell better than me.

It has to be said that this kid made a very smart choice.

Compared with that little management fee, it is more profitable to invest in people.

"No problem, I agree."

Peter Thiel was very happy and said, "Daren, if Clary Capital makes money, I will definitely give you a lot of consulting fees. This amount..."

Tell gestured with five fingers.

Xia Jingxing shook his head and chuckled, "You have already waived the management fee, so let's forget about the consulting fee. We are the closest partners, and there will be many opportunities to cooperate in the future."

Peter Thiel smiled, "Okay then, if you need any help in the future, please don't hesitate to contact me."

"Don't worry, I won't be polite!" Xia Jingxing laughed.

Having achieved his goal, Peter Thiel didn't stay any longer, got up to leave, and left with a smile. He was anxious to go back to deal with the establishment of a new fund.

After seeing Peter Thiel leave, Liu Hai returned to the meeting room.

He looked at Xia Jingxing who was recuperating, and directly expressed his guess: "I just observed Peter Thiel's expression and eyes, that kid might sneak up behind us to short subprime mortgages."

Xia Jingxing glanced at Liu Hai, he never expected that the latter would observe so carefully, it was beyond his expectation.

This also shows that Liu Hai cares about the company and him very much.

"Your guess is right. He told me just now that he wanted to set up a fund to short subprime mortgages, and I agreed."

Liu Hai looked puzzled: "Why do you agree? That kid didn't do anything, and just followed us to pick up a big deal."

Xia Jingxing recounted the content of the chat with Peter Thiel just now.

"He is sensible, and he knows that our management fee is waived, but why don't you want a consultant fee?"

Liu Hai shook his head, "Americans value business as business, and won't remember your favor."

"There is no need for him to remember favors."

Liu Hai felt that based on his understanding of the boss, it must not be that simple, and he was probably digging some kind of hole.

After thinking about it, Liu Hai tentatively asked: "Do you want Peter Thiel to bear the karma for us?"

"The word cause and effect is not very accurate. It should be said that it is taking the blame for us."

Xia Jingxing said with a smile: "I want to make Peter Thiel the God of Wall Street!

If there is a chance to make another movie for him, it will be a well-known big production. From Silicon Valley to Wall Street, entrepreneurs, venture capitalists, sky gods, treasure slash boys.

Oh, and he's gay, so it's more topical, and the movie sure does well. "

Liu Hai didn't understand the treasure slash boy, but he understood the others. The boss wanted to push everything on Peter Thiel's head. force.

"This is a good way!" Liu Hai nodded, everything was arranged clearly and meaningfully.

"Oh, what about Paulson? Shall we also treat him as an empty god?" Liu Hai asked.

Xia Jingxing smiled faintly, "He, I'm afraid we don't need to praise him, he has already started raising a second fund, and his actions are much faster than Peter Thiel, who is looking forward and backward."

Liu Hai nodded, "That's right. Paulson is a ruthless man. His confidence and enthusiasm in investing in subprime mortgages is no less than ours."

"By the way, Jing Xing, everyone has started raising funds, should we continue raising new funds?"

Xia Jingxing shook his head: "Not for now, they are all the first subprime mortgage funds, or they were too small before, we are different, do the math, how much have we raised recently?

Take it easy, we are not the father of LP, so we don't expect to raise many.

When the fund results come out, without us looking for them, LP will wave a check and call us dad. "

Liu Hai smiled, thinking that this metaphor is very vivid.

"Okay, let's focus on performance first. We still manage a direct investment fund of US$1.5 billion."

Xia Jingxing laughed and said, "What 1.5 billion, you have to remember clearly, we only have two direct investment funds with 400 million US dollars."

Liu Hai immediately realized that he had said the wrong thing, and they invested another 700 million US dollars in 8 vest funds.

Among other things, in terms of their wretched style of play, they are the only ones.

However, there was a reason for this, when Xia Jingxing thought about the scene where millions of people were homeless, he felt a little shuddering, no one could bear the anger of so many people, it's better to keep a low profile.

Plant a few more targets and go out to attract firepower, while they hide in the dark and count the money, enjoying themselves.