Investment Life

Chapter 46

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Today, on the European continent, a revolution is underway. After the Second World War, the European Community is seeking to strengthen its cohesion step by step. In 1991, the Maastricht Treaty replaced the Brussels Treaty, and the framework of the European Union has been established. After the disintegration of the Soviet Union at the end of 1991, affected by the drastic changes in the world structure, the development of the EU has also entered a period of high-speed operation. It seems that a generation of European continents will regain their glory, keep pace with the powerful United States, and even surpass each other by a distance. It seems to be a beautiful dream for European leaders.

However, the key European economic and monetary system in the EU treaty is not as perfect as their ambitious plan. The extremely complex European exchange rate mechanism has become a typical case of financial engineering seriously out of control in human history. From 1979 until the birth of the euro in 1999, the European Exchange Rate Mechanism suffered a total of 18 adjustments, affecting 56 central exchange rates. It also led to two staggering currency crises.

In this rare exchange rate adjustment in the world, the international money market funds led by hedge funds have become the terrible enemies of European governments. Taking advantage of the loopholes in the foreign exchange mechanism, financial giants have launched a fierce attack around the changing Europe, and pieces have been torn down. Profits went into the pockets of these financiers. In 1992 alone, Soros gained a huge fortune of more than 200 million US dollars, while the British government lost more than billions of pounds in the offensive and defensive battle of the British pound exchange rate.

But the crisis was not the only one in 1992. Unlike most people know, these bloodthirsty financiers did not stay away from the European market. Only 11 months later, in August 1993, the second exchange rate mechanism crisis occurred. The main targets of this crisis are the French franc and the Italian lira. Different from the previous sterling crisis, in 1993 hedge funds hid their sharp minions and annihilated the situation. Under the hidden current, money moved as quietly as running water.

If you really want to choose an investment direction, then this exchange rate crisis can be described as a big opportunity in 1993. In Chen Yuanming's memory, the European market made a lot of profits this year, and there is the founder of Tiger Fund in front of him. It is only the beginning of June, and there are still two months before the real start of August. During this period, it is Mr. Robertson's top priority to build a private equity team and gather large-scale funds.

And Chen Yuanming's bond operations in the European market are not only to make profits, but also to attract winners in this battle. His current assets are only more than 30 million US dollars, which is almost insignificant in the hundreds of millions of foreign exchange wars, and the foreign exchange market is complex and changeable, and he cannot immediately grasp things, so instead of being reckless, it is better to take advantage of these The winners are in the east, waiting for the huge profits to be recorded.

Now that the other party has lifted the veil of hypocrisy and revealed sharp fangs, he is naturally happy to follow the good manners and enter this financial feast.

Nodding with a smile, Chen Yuanming's not-so-standard American pronunciation brought a hint of interest, "Everyone is envious of Soros' achievements, isn't it?"

Sitting across from him, Mr. Robertson frowned slightly. In his mind, his Tiger Fund was not inferior to the Soros Quantum Fund, but the pound sniper won too much reputation for this guy, making him the second-ranked one.

Just as he was about to say something, the young man on the other side changed his words.

"However, compared to Quantum Fund, I am still optimistic about Tiger Fund's stable style in recent years. I need not to show off its power, not to make a certain country bow its head to its glory, but to make real profits and victory. There is a Chinese saying that there is no tiger in the mountains, and the monkey is the king. The tiger itself no longer needs to show off, its strength represents everything."

When these words came out, even Mr. Robertson, who had always kept a polite smile, laughed out loud. For him, he had heard a lot of exaggerated compliments, but the Chinese teenager's words were right in his heart and he was proud and proud. Confidence stuff. In the financial market, only victory is everything. It's tempting to be a financial predator who can change the political situation of a country, and it's tempting to talk under the neon lights, but that's not his business. Hidden attack, ferocious predators should be the style of big cats like tigers.

With this laughter, the atmosphere in the conference room immediately became intimate. In Robertson's philosophy, the money of the partner is not important, but the compatibility of temperament is the key. After all, a hedge fund is not an investment banking business. Its concealment and small scale mean that cooperative groups need to be closely connected, and a good partner is often more important than a huge capital injection. Although the young man in front of him looks young and amazing, he already has the basic conditions for a qualified financier. If you look at the long-term concept of holding potential stocks, investing in such a person is a profitable business.

With this idea in mind, after some detailed discussions, a secret agreement was reached. As a partner of Tiger Fund, Chen Yuanming invested 30 million US dollars to participate in the next sniping action against the European foreign exchange market. After the action is over, you can collect the funds and withdraw the funds. This kind of short-term entry into hedge fund partners is not without, but after all, there are not many. When Mr. Robertson asked about this and his views on future Eurobonds, Chen Yuanming just smiled and shook his head.

"I still have some important things at hand that need to use this money, and now European bonds are also overheating. Although I have not experienced the disaster in 1987, the hidden dangers caused by too much international hot money still make people vigilant. Now the European market It may not be a repeat of what happened last year. So I am not optimistic about the European bond market next year.”

This said, Robertson frowned slightly. He had personally experienced the terrible scene of "Black Monday" in 1987, and he knew all too well about the catastrophic consequences of the stock market crash. But now it is only the middle of the year, and the influx of funds in the European bond market is far from reaching saturation point. This young man dares to comment on the trend of next year. Should he say that he is too bold or too cautious

However, since the other party has no intention of taking a long-term job, reluctance is meaningless. Without multiple clauses and agreements, after the two shook hands again, the deal was negotiated. The next day, 30 million funds will be transferred to Mr. Robertson's account, and the huge profits will fall into Chen Yuan's pocket in the near future.

After negotiating the business, the other party graciously invited them to enjoy a steak dinner of hundreds of dollars at the well-known restaurant "Smith & Warrenski" steakhouse at the entrance of Third Avenue in New York. This time, there is no business to look back on, and the topic seems relaxed and casual. Chen Yuanming is also very interested to hear a lot of news about Wall Street and those that are not known to ordinary people. For this great financial empire, his knowledge is indeed too superficial.

However, Mr. Robertson did not discriminate against Chen Yuanming because of his ignorance. On the contrary, it was more and more different from the first impression. The Chinese teenager showed quite interesting financial ideas. Some of his ideas were not as old-fashioned as the old-school Wall Street elites. And with something very fancy. Perhaps these ideas are still a little too fashionable for Wall Street today, but they may not be impossible to achieve in the future.

This "simple meal" really achieved the expected goal, and the original estranged relationship has also made great progress. After a polite farewell, the three left the noisy restaurant and drove the Land Rover Defender back home. After entrusting the funds to Tiger Fund, Chen Yuanming's short-term layout on Wall Street has been completed, and the rest is just handed over to Song Kevin and let him be responsible for continuous follow-up.

The profit ratio of this investment may not be as exaggerated as in China. After paying up to 2% of the management fee, you can get 6 or 7% profit return, but it is still not to be underestimated for the capital base. At present, in the Chinese stock market, investing 30,000 to 50,000 yuan and earning hundreds of thousands may be a very easy thing, but if you invest 100 million yuan, you can no longer accommodate such a huge amount of money before it is split and expanded. No matter which stock is concerned, this is all A number that can be the bookmaker. It is quite difficult to earn 100 million with 100 million.

But in the United States, it is not uncommon for such high investment to achieve high returns. Those business giants have unimaginable capacity and growth potential on the disk, and dividend profits sometimes far exceed the profits of short-term investment. Therefore, as Warren Buffett said, buying good stocks and holding long-term is the best profit model. However, this kind of large-scale investment is not something Chen Yuanming can do now. He is too short of money. How to make use of short-term revitalization and expand the scale of funds is the important thing today.

It can only be done step by step... After explaining the remaining details to Song Kaiwen, Chen Yuanming walked back to his bedroom. Through the still smooth glass wall, he looked at the splendid concrete jungle in the distance, with an indescribable emotion in his heart. Now it's just a little bit of water, and you can vaguely see the power of money under Wall Street, so in the near future, can he stand on a similar starting line with these giants

There are so many thrilling events and so many coveted opportunities in the next few years. This is an era when financiers are leveraging the world, defeating governments and manipulating the lifeblood of the economy. He only hopes that before that day comes, he has strong capital and does something worthwhile to do...

The author has something to say: I have not found enough information about the foreign exchange war in 1993, but I just know that Tiger Fund made a lot of money this year, so I assume it is here to make it >_

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