For most Chinese, the Lunar New Year is still a long time away, but Chen Yuanming's spring break came to an early end. On the afternoon of the first day of the new year, he embarked on a flight to New York.
This time, he was accompanied by Song Kaiwen and Guoxing Fund director Sun Guoqiang, a group of 8 people, with the goal of setting up the New York headquarters of Yuanyang Fund. Unlike most other commercial institutions, Chen Yuanming did not place his company in crowded Midtown Manhattan or Wall Street, but rented an office building on Park Avenue and lived next to those low-key hedge funds.
For private equity funds, secrecy is almost a prerequisite. Although it is located in this financial capital, the headquarters of Yuanyang Fund is simpler than many people think. It is the key to all private equity funds.
At the beginning of February, the wave of annual dinners for major companies in New York has subsided, but business is still booming in Manhattan's upper-class hotels. Like the early recovery of hibernating creatures, the hedge fund partners started their own private cocktail parties, and the money flow was staggered. This is a feast for the financial giants, with suits and leather shoes, warm smiles, and full of gentlemanly demeanor, sharing the flesh and blood of those victims with knives and forks.
If you want to stand firm in the private equity fund circle, such communication is essential, and it is the best way for the circle to communicate with each other and go hand in hand. The establishment of Yuanyang Fund and Chen Yuanming himself are of course no exception.
Therefore, after arranging the inspection tour of Sun Guoqiang and others, Chen Yuanming began to get ready for a banquet. This time the host is a real "old friend", Mr. Robertson, the founder of Tiger Fund.
In the past two years, Chen Yuanming has not wasted too much time in the field of Wall Street because he has spent more energy in Silicon Valley and in China. But his communication with Mr. Robertson has never been interrupted. As a window to the world of hedge funds, he has learned a lot from the real tycoon. Since the beginning of the European bond crisis in 1994, Mr. Robertson's attitude towards him has also changed. .
You must know that in 1994, the US macro hedge fund started from prosperity to decline. Not to mention small companies, even the real short-term giants such as Steinhardt suffered huge losses. Quantum Fund reluctantly relied on other income. Losing money or not, but Tiger Fund was uncharacteristically profitable in 1994.
And this profit is thanks to Chen Yuanming's reminder. Although he has a very arrogant temperament and has never taken this Chinese kid seriously, he is like the elephant in the room, as long as there is a prompt, it will inevitably attract attention. It is this concern that allowed Robertson to successfully avoid the slump in European bonds, and withdrew safely before the crash, preserving the annual income share of the Tiger Fund.
This is a very happy and good thing for Robertson. You must know that he has withdrawn from Tiger Fund in the past two years and has opened his own hedge fund. There are no less than ten partners, and in the 1994 Eurobond turmoil, half of these people Compared with the status quo of Tiger Fund, how can it not make people happy.
As for the little guy Chen Yuanming, if the bond crisis is just a blind cat hitting a dead mouse, then at the end of 1994, his international metal futures gains showed surprising talent. The appreciation of aluminum futures is not surprising. It is strange that it can bet to a high of 2 US dollars and withdraw at the right time. As for copper futures, in the Robertson survey, copper prices have shown signs of man-made manipulation, and the practice of Mr. 5% is now known to almost everyone on Wall Street. At first, large and small institutions began to short copper prices, but Chen Yuanming was not affected by it at all, and he went long with Binzhongtainan, and made a big profit on copper.
It's not uncommon for a partner to make hundreds of millions of dollars a year for a hedge fund. But a single speculator who wins 100 million by borrowing a bet is a very scary thing. Therefore, after the establishment of Yuanyang Fund, Mr. Robertson took the lead in extending an olive branch to Chen Yuanming.
In the face of such kindness, Chen Yuanming could not refuse. Due to the accumulation of touchstones and excessive attention to Nasdaq technology stocks, in the circle of hedge funds with financial derivatives as the mainstream, there are not many people who pay attention and are optimistic about others. In the next few years, he really needs a strong ally. Now that it is enough to squeeze the weight in his hand, it is time to make some big moves.
Taking elegant steps, Chen Yuanming walked into the lobby of the hotel that was too luxurious. Without much effort, he saw a familiar figure in the center of the venue. With a slight smile, he took a glass of champagne from the waiter's hand. Instead of crowding into the circle surrounded by the crowd, he casually stood in the corner and looked at everyone in the room.
This is a real "elite party", and the entrance is full of familiar faces in the circle. There are no ordinary dinner stars or show politicians. Everyone has an arrogant smile that truly belongs to Wall Street, which is personable and full of meaning. After standing for about a quarter of an hour, just as he put down the wine glass in his hand, a voice greeted him.
"Chen!" With a smile on his face, Mr. Robertson strode over, and when he held Chen Yuanming's right hand, a strange smile appeared on the corner of his mouth, "Have you heard? Mexico is over."
Chen Yuanming smiled and shook it back, "As expected."
A singing and a harmony will make many outsiders puzzled, but the two know it well. They talk about the recent Mexican financial crisis. On December 19, 1994, the Mexican government suddenly announced a 15% devaluation of the peso, and the market fell into chaos in an instant. A large number of foreign investors began to sell the peso and buy dollars, causing the exchange rate to plummet further. In just one month, the peso fell by more than 5% against the US dollar, and the Mexican stock market also plunged by more than 3%, further causing financial turmoil in Argentina, Brazil, Chile and other countries, and even a large number of American investors suffered serious losses.
However, this financial crisis in Mexico really has nothing to do with those macro hedge giants. After all, Mexico is the scope of the US financial industry, and no one wants to ruin their investment industry. This financial crisis is purely the financial policy of the Mexican government. Misfit. Affected by this major mistake, many American financiers suffered losses. Even if some hedge funds did not suffer too much loss due to their short insurance positions, this unexpected event was still not a good thing for them.
However, thousands of people suffered losses, but these two were not among them. As early as the beginning of December, just after the establishment of Yuanyang Fund, it established a short position of 200 million US dollars on the peso. While Mr. Robertson has been focusing on the metal palladium trade recently, Mexico has not done much. Instead, it was a blessing in disguise and avoided this disaster.
But Chen Yuanming's clever move to the extreme really impressed Mr. Robertson. The only pity was that the principal was too small and he was not able to grab more benefits. However, this battle completely opened his door to the financial hunting ground, and only then did he get this invitation.
"How is it? The U.S. government is about to start assisting Mexico. Do you have any plans at hand?" Mr. Robertson took two slender wine glasses and handed one to Chen Yuanming.
"No surprise, I'm still ready to operate metal futures again." Chen Yuanming replied very honestly, his eyes twinkling with the light of the other side.
"Have you found a problem in London, too?" Mr. Robertson was very satisfied with this reasonable answer. "Are you ready to go? It's already crowded near Park Avenue."
After taking a sip of the pleasant wine, the expression on Chen Yuanming's face did not change. This is the real invitation letter, the opening ceremony of a hunting feast. This group of hedge fund holders is like a group of ferocious tiger sharks, usually alone, but when they smell blood, they will swarm. And when this huge sum of money comes together, it is enough to subvert a country's economy. Now is the moment when the smell of blood begins to appear.
"If you have such a plan, I'll be happy to follow up." Chen Yuanming smiled without any grudges, "It just needs a specific time."
"The end of February or the beginning of March." Robertson also smiled. "That group of people has to get out of the Mexican quagmire."
That's right, that's why it's so easy to form a front. The Mexican financial crisis also had a huge impact on the United States. The US$100 million was annihilated in the turbulence, and the US$500 million was used to stabilize the market. In this sudden incident, the financial giants also scraped a piece of meat from their bodies. Since the flesh and blood has been squandered, it must be filled. London copper futures has now soared outside the reasonable range, and it happens to be an excellent prey. You must know that since the beginning of the Plaza Accord, the Japanese consortium has always been a fat sheep in the eyes of the Americans, and the existence of Binzhong Tainan has made many people dislike it.
Now that the sheep have been fattened, they should naturally be out of the circle.
"What about the scale?" This is also the key point. You must know that in Chen Yuanming's memory, this tug of war lasted for a whole year. The resistance was unimaginably fierce. Confidence did not fail until the double-violation review in London and the United States began, which was in mid-1996.
"There are already 6 or 7." Mr. Robertson showed a bloodthirsty smile, "More than 100 million can't escape."
Under the leverage principle of the futures market, this amount of money is almost equal to hundreds of billions of dollars, which is already a very reassuring figure in theory.
Chen Yuanming smiled and raised his wine glass, "Together."
Two delicate and fragile wine glasses touched each other.
…
"I've read the documents from Mexico in the past two days. Is the situation really that serious?" Putting down the stack of documents in his hand, Sun Guoqiang's face looked a little ugly.
At the beginning of this year, I will come directly to the United States. On the one hand, I will inspect the operation of the international futures market on the spot, and on the other hand, I will directly assess the recent financial crisis in Mexico. There is no better place than the United States. When Yuanyang headquarters got the information, Sun Guoqiang was terrified beyond words.
This Mexican crisis is entirely due to the government's improper regulation and over-opening of the financial market, resulting in a large influx of foreign hot money into the country and absorbing existing foreign exchange reserves, resulting in the national currency no longer being able to lock in the US dollar exchange rate. The withdrawal of hot money caused an avalanche, which led to a disaster.
Seeing such a case, who can not be frightened. You must know that there are more than one or two domestic advocates of further opening up the financial market. How could those complacent guys in the financial circle have foreseen such a tragedy.
Sitting on the sofa, Chen Yuanming drank the coffee in his hand lightly, and said unhurriedly, "It can be learned that there are many things, not only foreign exchange."
Yeah, in a few days, Barings is going to shock the world again. This purely man-made disaster is like a mirror, revealing systemic loopholes and causing dire consequences. With such two cases, I wonder if it can cool down the domestic financial market a little bit
However, this is not the key point at present. The real key is still copper in hand. Chen Yuanming brought the topic back, "However, in Mexico, we are only making money and not losing money. Let's start with regular copper operations."
Hearing this, Sun Guoqiang raised his head, with a hint of hesitation in his eyes, "Are you really going to do this? We have achieved quite good results in the future aluminum industry, but is it too early to break into the future aluminum melee?"
"It's not too early." Chen Yuanming smiled, "And only when the cranes and clams compete, the fisherman can benefit."
The author has something to say: I'm so sleepy that I can't open my eyes. Let's do this today, and continue to work hard on QAQ tomorrow.
Thank you friends for feeding, let’s go over one by one > 3
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