Chapter 223： take more responsibility
Meta Investment Company's private fund performance, because it needs to withdraw the investment profit share, it sends a notification email to each investor and informs them that the redemption and investment window has been opened, and the news is also announced.
Of course, it follows that many people are asking Chen William a question, whether it is necessary to redeem this fund now. Chen William's reply depends on personal choice. If the urgently needed funds can be redeemed, this time only The net value of the unit is recalculated by the way for the fund to withdraw the share of investment income.
However, for those who are close to him, William Chen's suggestion is to redeem at this time, because he knows that as the intense and destructive stage of the subprime mortgage crisis is about to pass, the era of quantitative easing will soon be faced, and the stock market will slow down. Therefore, the fund in charge of John Paulson will not have much growth in future earnings, and may even suffer losses.
This is why he is willing to increase John Paulson's share in this fund to 50%. The fund's share may not be very high in the future, and he can show goodwill to the other party, as he does in the short-selling stage. Contribution reward.
Therefore, including the Drey family, Ivanta, Paris, they all began to redeem the fund shares.
However, these actions have little impact on the No. 3 Fund, which is the future John Paulson Fund. Because of the redemption, more people hope to join the investment, especially in the previous fund's return rate. After the announcement, there were countless people waving banknotes, hoping to join this highly profitable fund.
Just like after the subprime mortgage crisis, many funds, including those well-known hedge funds, suffered heavy losses. In the same way, during this period, there were many small funds before, because they did the right direction and won excess profits.
These funds, before the subprime mortgage crisis, tended to be under $100 million, with more than two-thirds of them under $50 million. This is easy to understand. The managers of these funds, previously regarded by the big Wall Street investment banks as only marginal funds, who can bearish the market are originally contrary to the mainstream market, so there are not many people who dare to invest in them. Most of them are gambling elements.
Even John Paulson was initially seen by top investment banks like Goldman Sachs as a third-rate fund manager.
But it is precisely these small funds that are not in the market, because they dare to use high leverage, many of them have obtained a dozen or even dozens of times of returns in this subprime mortgage crisis, and the rate of return is higher than that of John Paulson. Lots of people are there.
It's just that the rare thing about John Paulson is that the size of the fund he manages was more than $500 million in the early stage, and then directly increased to more than $7 billion. With such a large scale, he can still obtain these profits. , which is valued by those investors.
If there are people who can really invest so much money, there must be no idiots, so everyone understands that the return is absolutely matched with the risk. Yes, no matter when, the return rate of several times or ten times can be achieved by funds, but most of them are short-lived. The higher the rate of return pursued, the less stable it is.
In this market, you want to look in the right direction every time, and you can win with high leverage every time. That is impossible. The higher the leverage, the lower the fault tolerance rate, and the more difficult it is to last. You can be right every time, but if you are wrong once, it will be a disaster.
This is why Buffett can be a god, and it is really too difficult to maintain a fund with an average annualized profit of more than 20% for more than ten or twenty consecutive years like him.
Even so, after the subprime mortgage crisis, those small funds that were once swelled to a scale of more than 5 billion US dollars and became large funds. This includes their profits, as well as subsequent additional investments.
However, there are not many funds that can reach the size of John Paulson's No. 3 Fund. Even on Wall Street, funds with more than $20 billion are rare. Therefore, among the winners of the subprime mortgage crisis, John Paulson, although not the most profitable one, has also become the most famous one.
This also resulted in the fact that even after some people close to Chen William continued to choose to redeem the fund, the investment assets of Fund No. 3 decreased by more than 3.5 billion US dollars, but the total size of the final fund still exceeded 25 billion. Dollar.
Because after Fund 3, now renamed the John Paulson Fund, opened its investment window, with the assistance of Goldman Sachs, the custodian, it took less than a week to snap up a new investment quota of $10 billion. empty.
This also makes the size of the John Paulson Fund exceed 25 billion US dollars, the largest of which is the 5 billion US dollars invested by the Saudi sovereign fund. It can only be said that the local tyrants in the Middle East are still rich.
These investments from the Saudi sovereign fund are also strongly recommended by Lloyd Blankfein, CEO of Goldman Sachs Group.
Chen William couldn't help thinking of what the other party told him before:
"William, you have made a name for yourself in the subprime mortgage crisis this time, but accordingly, you'd better be able to take your own responsibilities."
Indeed, after the initial investment by the John Paulson Fund was opened, investors responded positively. For the $10 billion quota, it was not too difficult to accept. Just the rich people in the United States were enough to complete it.
As for why not accept higher investment? The main reason is the expansion of the fund this time, mainly because of the subprime mortgage crisis, and John Paulson had no experience in managing such a large-scale fund before. Therefore, William Chen did not want to make the scale of this fund too large for the sake of safety. Otherwise, if John Paulson misses and causes too much loss, even if the fund does not need to pay any compensation, it will have a great negative impact.
The size of the previous fund has reached more than 25 billion US dollars, so it is relatively safe to ensure that it is within this size.
What William Chen wanted most before was investment from the United States or Europe, so that he could have more powerful resources for his own use. As for the rich countries in the Middle East, well, it seems that they can't help much other than oil.
But what Lloyd Blankfein said next made William Chen understand that he really seemed to need to accept some of their investment.
"This time in the subprime mortgage crisis, the capital loss of the rich countries in the Middle East is very large. In addition to the explosion of Bernard Madoff's Ponzi scheme before, the most of the losses are the rich countries in the Middle East. So now they have a lot of money for Wall Street. The trust of the investment banks and funds is declining, they think their assets have been deceived too much, and now it seems that their funds have a tendency to move to Asia and Europe.”
"But the American government is doing everything possible to save the financial market, so it doesn't want to see such a situation. Now you are the best performer in this crisis, and it is easier for the Middle East tyrants to trust you, so when When they withdraw their funds from other funds, you should also take more responsibility here to keep their funds in the financial markets of the United States, and also help the country to prevent the loss of funds."
Hey, the so-called great power comes with great responsibility. It seems that I still have to bear some responsibilities, so that I can also cooperate with the strategy of the whole country, and the meat will be rotten in the pot. The premise is that it cannot be taken away, whether it is their funds. Whether it was in other investment banks or Chen William, the final investment was in the financial market of the United States, and the entire country was moved from the plate.
But if these funds go to Europe or Asia, it will be different. In order to stabilize the market, wouldn’t the already busy American banknote printing factory have to work overtime or even increase the number of machines?
And in fact, this kind of sign has already appeared, just like SoftBank Group, Sun Zhengyi recently, his wallet is bulging again, SoftBank Group has just received more than 50 billion US dollars of investment from the local tyrants in the Middle East, and a lot of this money is transferred from the American market. In the past, other countries in Asia, such as China, have also recently been very popular among the local tyrants in the Middle East.
Naturally, the U.S. government cannot see this situation continue to occur, and must take action. As for William Chen, it is a banner that they put out. See, we are not all in debt, and there are people with great investment, and we still don't invest all of our money in him.
For example, those rich countries in the Middle East are rich in oil resources, and it is easy to get money. But people without far-sightedness will have immediate worries, and they are also worried about what if the domestic oil production runs out? Then invest quickly and let the money continue to generate money. This is the long-term solution.
Therefore, the sovereign funds of these countries, including Saudi Arabia, Kuwait, Qatar and other countries, have invested their funds all over the world, and the largest share of them has entered the American market.
Moreover, in order to win the favor of the American government, UUkanshu often have to make contributions. For example, Citigroup and Merrill Lynch were invested by these sovereign funds at the beginning of the subprime mortgage crisis. , to help them get out of the predicament, and these investments of them are still in huge losses.
When they found out that you had an economic crisis here, I became a leek and lost the most. Then we have to make more plans, so there are signs of shifting to Europe and Asia, just like the consortium of the rich and powerful countries in the Middle East investing in European football, which started at this time, the purpose is to enter the European market.
To prevent this from happening now, someone needs to take their money, so according to Lloyd Blankfein, this $5 billion is just the beginning, and there will be more to come if the need arises funds are recommended.
Seeing William Chen's decision to limit the latest fundraising of the John Paulson Fund to only $10 billion, Lloyd also began to persuade William Chen that he should take charge of a fund himself. Get him $20 billion in funding.
It is no wonder that Lloyd is so active. You must know that William Chen is now Goldman Sachs' largest individual shareholder, so his fund will also be placed under Goldman Sachs custody. To host them, only 0.5% of the hosting fee for one year, that is 100 million US dollars, this is a waste of money, and they don't need to pay too much complicated thinking at all.
American Road to Fame https://
Of course, it follows that many people are asking Chen William a question, whether it is necessary to redeem this fund now. Chen William's reply depends on personal choice. If the urgently needed funds can be redeemed, this time only The net value of the unit is recalculated by the way for the fund to withdraw the share of investment income.
However, for those who are close to him, William Chen's suggestion is to redeem at this time, because he knows that as the intense and destructive stage of the subprime mortgage crisis is about to pass, the era of quantitative easing will soon be faced, and the stock market will slow down. Therefore, the fund in charge of John Paulson will not have much growth in future earnings, and may even suffer losses.
This is why he is willing to increase John Paulson's share in this fund to 50%. The fund's share may not be very high in the future, and he can show goodwill to the other party, as he does in the short-selling stage. Contribution reward.
Therefore, including the Drey family, Ivanta, Paris, they all began to redeem the fund shares.
However, these actions have little impact on the No. 3 Fund, which is the future John Paulson Fund. Because of the redemption, more people hope to join the investment, especially in the previous fund's return rate. After the announcement, there were countless people waving banknotes, hoping to join this highly profitable fund.
Just like after the subprime mortgage crisis, many funds, including those well-known hedge funds, suffered heavy losses. In the same way, during this period, there were many small funds before, because they did the right direction and won excess profits.
These funds, before the subprime mortgage crisis, tended to be under $100 million, with more than two-thirds of them under $50 million. This is easy to understand. The managers of these funds, previously regarded by the big Wall Street investment banks as only marginal funds, who can bearish the market are originally contrary to the mainstream market, so there are not many people who dare to invest in them. Most of them are gambling elements.
Even John Paulson was initially seen by top investment banks like Goldman Sachs as a third-rate fund manager.
But it is precisely these small funds that are not in the market, because they dare to use high leverage, many of them have obtained a dozen or even dozens of times of returns in this subprime mortgage crisis, and the rate of return is higher than that of John Paulson. Lots of people are there.
It's just that the rare thing about John Paulson is that the size of the fund he manages was more than $500 million in the early stage, and then directly increased to more than $7 billion. With such a large scale, he can still obtain these profits. , which is valued by those investors.
If there are people who can really invest so much money, there must be no idiots, so everyone understands that the return is absolutely matched with the risk. Yes, no matter when, the return rate of several times or ten times can be achieved by funds, but most of them are short-lived. The higher the rate of return pursued, the less stable it is.
In this market, you want to look in the right direction every time, and you can win with high leverage every time. That is impossible. The higher the leverage, the lower the fault tolerance rate, and the more difficult it is to last. You can be right every time, but if you are wrong once, it will be a disaster.
This is why Buffett can be a god, and it is really too difficult to maintain a fund with an average annualized profit of more than 20% for more than ten or twenty consecutive years like him.
Even so, after the subprime mortgage crisis, those small funds that were once swelled to a scale of more than 5 billion US dollars and became large funds. This includes their profits, as well as subsequent additional investments.
However, there are not many funds that can reach the size of John Paulson's No. 3 Fund. Even on Wall Street, funds with more than $20 billion are rare. Therefore, among the winners of the subprime mortgage crisis, John Paulson, although not the most profitable one, has also become the most famous one.
This also resulted in the fact that even after some people close to Chen William continued to choose to redeem the fund, the investment assets of Fund No. 3 decreased by more than 3.5 billion US dollars, but the total size of the final fund still exceeded 25 billion. Dollar.
Because after Fund 3, now renamed the John Paulson Fund, opened its investment window, with the assistance of Goldman Sachs, the custodian, it took less than a week to snap up a new investment quota of $10 billion. empty.
This also makes the size of the John Paulson Fund exceed 25 billion US dollars, the largest of which is the 5 billion US dollars invested by the Saudi sovereign fund. It can only be said that the local tyrants in the Middle East are still rich.
These investments from the Saudi sovereign fund are also strongly recommended by Lloyd Blankfein, CEO of Goldman Sachs Group.
Chen William couldn't help thinking of what the other party told him before:
"William, you have made a name for yourself in the subprime mortgage crisis this time, but accordingly, you'd better be able to take your own responsibilities."
Indeed, after the initial investment by the John Paulson Fund was opened, investors responded positively. For the $10 billion quota, it was not too difficult to accept. Just the rich people in the United States were enough to complete it.
As for why not accept higher investment? The main reason is the expansion of the fund this time, mainly because of the subprime mortgage crisis, and John Paulson had no experience in managing such a large-scale fund before. Therefore, William Chen did not want to make the scale of this fund too large for the sake of safety. Otherwise, if John Paulson misses and causes too much loss, even if the fund does not need to pay any compensation, it will have a great negative impact.
The size of the previous fund has reached more than 25 billion US dollars, so it is relatively safe to ensure that it is within this size.
What William Chen wanted most before was investment from the United States or Europe, so that he could have more powerful resources for his own use. As for the rich countries in the Middle East, well, it seems that they can't help much other than oil.
But what Lloyd Blankfein said next made William Chen understand that he really seemed to need to accept some of their investment.
"This time in the subprime mortgage crisis, the capital loss of the rich countries in the Middle East is very large. In addition to the explosion of Bernard Madoff's Ponzi scheme before, the most of the losses are the rich countries in the Middle East. So now they have a lot of money for Wall Street. The trust of the investment banks and funds is declining, they think their assets have been deceived too much, and now it seems that their funds have a tendency to move to Asia and Europe.”
"But the American government is doing everything possible to save the financial market, so it doesn't want to see such a situation. Now you are the best performer in this crisis, and it is easier for the Middle East tyrants to trust you, so when When they withdraw their funds from other funds, you should also take more responsibility here to keep their funds in the financial markets of the United States, and also help the country to prevent the loss of funds."
Hey, the so-called great power comes with great responsibility. It seems that I still have to bear some responsibilities, so that I can also cooperate with the strategy of the whole country, and the meat will be rotten in the pot. The premise is that it cannot be taken away, whether it is their funds. Whether it was in other investment banks or Chen William, the final investment was in the financial market of the United States, and the entire country was moved from the plate.
But if these funds go to Europe or Asia, it will be different. In order to stabilize the market, wouldn’t the already busy American banknote printing factory have to work overtime or even increase the number of machines?
And in fact, this kind of sign has already appeared, just like SoftBank Group, Sun Zhengyi recently, his wallet is bulging again, SoftBank Group has just received more than 50 billion US dollars of investment from the local tyrants in the Middle East, and a lot of this money is transferred from the American market. In the past, other countries in Asia, such as China, have also recently been very popular among the local tyrants in the Middle East.
Naturally, the U.S. government cannot see this situation continue to occur, and must take action. As for William Chen, it is a banner that they put out. See, we are not all in debt, and there are people with great investment, and we still don't invest all of our money in him.
For example, those rich countries in the Middle East are rich in oil resources, and it is easy to get money. But people without far-sightedness will have immediate worries, and they are also worried about what if the domestic oil production runs out? Then invest quickly and let the money continue to generate money. This is the long-term solution.
Therefore, the sovereign funds of these countries, including Saudi Arabia, Kuwait, Qatar and other countries, have invested their funds all over the world, and the largest share of them has entered the American market.
Moreover, in order to win the favor of the American government, UUkanshu often have to make contributions. For example, Citigroup and Merrill Lynch were invested by these sovereign funds at the beginning of the subprime mortgage crisis. , to help them get out of the predicament, and these investments of them are still in huge losses.
When they found out that you had an economic crisis here, I became a leek and lost the most. Then we have to make more plans, so there are signs of shifting to Europe and Asia, just like the consortium of the rich and powerful countries in the Middle East investing in European football, which started at this time, the purpose is to enter the European market.
To prevent this from happening now, someone needs to take their money, so according to Lloyd Blankfein, this $5 billion is just the beginning, and there will be more to come if the need arises funds are recommended.
Seeing William Chen's decision to limit the latest fundraising of the John Paulson Fund to only $10 billion, Lloyd also began to persuade William Chen that he should take charge of a fund himself. Get him $20 billion in funding.
It is no wonder that Lloyd is so active. You must know that William Chen is now Goldman Sachs' largest individual shareholder, so his fund will also be placed under Goldman Sachs custody. To host them, only 0.5% of the hosting fee for one year, that is 100 million US dollars, this is a waste of money, and they don't need to pay too much complicated thinking at all.
American Road to Fame https://
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