Chapter 706: Becoming a Fearsome Character is Xiong!
A multi-trillion dollar behemoth market, but the average person knows very little about it.
Because hedge funds have always been shrouded in mystery for the general public.
They often appear on the front pages of financial and economic newspapers and magazines, and they seem to be an evil force that helps the wealthy or financial institutions manage their finances through private placement.
But is it really completely evil?
That's not necessarily, it's just that the people who operate it are too evil, except for greed and profiteering, they don't care about the lives of other people, and it may have huge destructive energy and lethality.
Not to mention the imminent Soros devouring the wealth of Asia, it was too many years for him in that life.
In the Hereafter.
Li Jun deeply remembers the 2008 financial crisis, the world economy was greatly affected, a large number of enterprises failed, and banks collapsed, including of course, hedge fund companies, there is no shortage of large funds with a scale of more than $5 billion, but people see that unlike the collapse of investment banks, the collapse of those hedge funds did not have a huge impact on the financial system, nor did they apply to the government for even a single bailout fund, even if the Madoff scandal was the case.
Although it brought huge losses to institutional investors, it did not bring systemic risks to society, so people abandoned their stereotypes in later generations.
Hedge funds have a value for their existence.
It's not just about destruction and destruction.
Hedge funds have grown in size since then, from being demonized to being acknowledged, after a period of two decades of wild and savage growth.
Because it has not been recognized for a long time, its practitioners need a strong psychological quality, and it can even be said that there should be a little evil in the body, because this is advantageous in the pioneering period and the wild period of the industry.
And Chen Yanyin is such a guy who meets all the conditions.
However, to give him his own money and make him the general manager of his own hedge fund, it is necessary to know his roots, his family, his family...... In all aspects, Li Jun first conducted a thorough investigation.
The heart of defense is indispensable, this Chen Biting Yin, after all, in such a short period of time, he can't fully trust him.
So, he also made a second preparation.
In addition to investigating his family, he also asked Guan Peng to start a hedge fund with him.
Today's hedge funds are in their infancy, and they are not complicated, and expertise is easy.
Its connotation is also the same as gambling, but it is not called gambling, it is called speculation.
In the eighties and nineties, the U.S. stock market was super booming, there was a big bull market, and the entire world economy accelerated, creating a group of new rich people, who paid more attention to hedge funds and joined the hedge fund game.
Hedge funds are originally hedging risks, known as hedging funds or arbitrage funds, and funds that use hedging trading methods to obtain benefits, in general, avoid or reduce risks by hedging.
But in fact, in the developed capital markets of the West, hedge funds are far from the meaning of his term, and hedge funds usually contain staggering high leverage.
That's why it's profitable.
Hedge funds invest in financial derivatives with increasingly complex results, which are far riskier than those of funds that use traditional trading models.
Moreover, hedge funds are not only in a certain country, they are funds that operate around the world, making leveraged bets on price fluctuations in stocks, currencies, interest rates, and commodity markets.
The reason why hedge funds are so demonized. In fact, the biggest reason is that it is not open to public investors, it is a speculative game in which many rich people participate, and the biggest point of hedge funds is that many hedge fund companies are offshore companies and have evaded the supervision of securities and exchange commissions of various countries.
For hedge funds, they also hate the securities and fund committees of various countries the most. Because they hate openness and transparency, which is directly related to the relevant laws or accounting structures, offshore hedge funds registered in the Virgin Islands and the Cayman Islands can use any legal financial portfolio to arbitrage anywhere in the world, without any national or partial declaration of investment techniques and financing structures.
As a result, it is not very popular with managers in some countries.
"Do a bigger business, across the world, not just in the narrow place of Bay Island!"
Chen Biting Yin's heart moved.
Now the large-scale gambling market no longer needs people like him, because now those electronic devices are getting more and more bullish, there used to be casinos often ask them to catch the old masters, but the society is developing, the times are developing, their electronic equipment is under the body, that body of martial arts is completely wasted, now there is an opportunity, a bigger and more exciting thing.
Chen Yanyin agreed without hesitation.
Chen Bites Silver joined.
This hedge fund company, Li Jun named Bridgewater.
Bridgewater is a well-known hedge fund company in later generations, and now Li Jun is ready to register Bridgewater first.
He used the name of the famous company in the previous life, why didn't he name it again, this is Li Jun out of the shadow of a reborn life.
The reborn will always have a fear of the butterfly effect, which is a concept in topology, defined as a phenomenon in which a very small perturbation of the initial value causes a huge change in the system, in layman's terms, a butterfly in the Amazon rainforest of South America, with an occasional flick of its wings, can cause a tornado in Texas, USA, two weeks later.
Li Jun has been worried about his butterfly effect when he returns to his life, and then many things happen that he has not experienced, or change the occurrence of some big events.
But, in the end, he spent a few years proving that it didn't.
Also, there are thousands of butterflies in the Amazon River basin, waving their wings all the time, so the people of Texas don't have to do anything else, because they have to hide in the basement all the time.
As long as you don't make too many changes, the original world has a greater influence and a large amount of time. He felt that his little butterfly's wings were not the so-called butterfly effect at all.
So, sometimes, he feels that he should let go of his hands, in the past he always wanted to retreat into the background and build an invisible empire of wealth, but now he is not so much about setting up a hedge fund company with the same name as the future generations, but rather because he has the idea of going to the front of the scenes, or half hidden, half exposed.
Especially this Bridgewater hedge fund company, Li Jun decided that he would take charge himself, and he could not show himself in life, but in the capital market, being a feared figure like Soros is a hero.