Chapter 282 LH Investment Fund
Thirty years later, Microsoft will have a market capitalization of $400 billion, Apple $750 billion, TSMC $120 billion, and Intel $150 billion. Even Nintendo's stock price at its peak once ranked second in Japan, reaching $70 billion.
And Li Xuan's Dongfang System Software, Dongfang Application Software, Aikang Computer, Dongfang Semiconductor, Dongfang Research Institute, and Dongfang Games, as long as a few can grow smoothly, Li Xuan's future wealth will exceed 100 billion US dollars, just like playing.
If each of these companies is very successful, then his wealth of hundreds of billions of dollars is not a dream at all, and Li Xuan will really be rich at that time. In the 2013 global GDP rankings, which were released before his rebirth, there were only 50 countries with a GDP of more than $200 billion. What's more, in the Internet era and smart phone era after the computer era, Li Xuan will definitely not miss it.
You have tens of billions of dollars and are likely to be sought after. But if you have hundreds of billions of dollars, it may cause some people to be uneasy, after all, the power of so much money is too great!
However, Li Xuan must not let himself deliberately not make money because of some possible hostility in the future! The best way is to transfer some of his assets to a dark place. In this way, even if someone attacks him in the future because of his popularity, he will have enough capital to fight back and make a comeback.
Therefore, Li Xuan deliberately set up a personal investment fund to take out a part of his assets to invest in companies other than the Oriental Group. The first tranche of $300 million was cash drawn by Li Xuan from various subsidiaries of the Oriental Group.
In the past, due to the abundant cash flow of Dongfang Electronics Company, Li Xuan rarely borrowed bank loans. Billions of Hong Kong dollars in unsecured credit facilities from Standard Chartered Bank and HSBC. He wasted it all in vain, which made other Hong Kong bosses envious to death.
Li Xuan's concept has always been that he is debt-free and light. You don't have to look at other people's colors. But this kind of small-scale farmer mentality has been criticized many times by other senior executives of the company, and borrowing money to make money is the king of business management.
Therefore, Li Xuan simply withdrew some of the cash in the group. Use it for other investments yourself. Anyway, if the company has a need for funds, it can borrow from the bank at any time. Banks can't ask for high-quality customers like Dongfang Electronics as long as you are willing to borrow money.
In addition, Li Xuan has declared to the London Stock Exchange in advance that he intends to reduce his stake in Aikang in the next 12 months, from the current 60% to 51%.
Among the top 10 shareholders of Aikang Company, except for Li Xuan, who occupies an absolute controlling position, the largest number of shares held by other shareholders is only 3.15%. It would not pose any threat to Li Xuan's control of Aikang Company at all.
In fact, this is the norm in the European and American securities markets, most of the company's equity is very dispersed, if the majority shareholder can control a company 20%-30%, it is enough to control the board of directors. Ikon shares are very sought-after on the London Stock Exchange, which also results in a very dispersed share of shares in free circulation from outside.
Even if Li Xuan reduces his shareholding to 40%, it will be enough for him to firmly control the board of directors of Aikang. But for the sake of insurance, Li Xuan still decided to reduce his holdings to 51% first, after all, the reduction of major shareholders is a very sensitive news for the market. On the other hand, the plate of Aikang is still too small. The total share capital is only two or three billion pounds. If Li Xuan gives up his absolute controlling stake too early, it will easily attract the peeps of other predators.
For example, for a company like IBM, if it is asked to spend three or four billion dollars to acquire a very promising emerging company like Aikang, it will definitely not even blink. Wait until Aikang grows for a few more years. After the market value exceeds $10 billion, other companies will have to consider whether they will suffer from indigestion if they want to annex Aikang.
Even according to the current share price of Aikang. Li Xuan reduced his stake by 9%, and he was able to cash out almost $400 million. And this money will also be invested in the newly established investment fund. So. By the end of next year, the total size of this new investment fund will be at least $700 million.
Such a large sum of money naturally requires a fund manager with sufficient talent to operate. The classmate recommended by Yang Lingjun is called Zhuang Yuhai, and he studied with him at St. Paul's Secondary School in Hong Kong in his early years. Later, Zhuang Yuhai immigrated to the United States with his parents. Shun lì was admitted to the Department of Mathematics at Harvard University.
After earning his Ph.D. from Harvard University, he turned around and joined Wall Street's Salomon Brothers as a bond analyst. Mr. Zhuang was initially responsible for pricing and valuation of the secondary market for structured financial products, as well as evaluating and analysing credit models.
Wall Street is very fond of high-achieving math graduates like him, because they tend to have strong logical reasoning skills and a very high level of processing information. Within Salomon Brothers, Zhuang Yuhai quickly stood out with his excellent analytical skills and keen ability to grasp opportunities.
Zhuang Yuhai, who just turned 45 this year, is already a senior partner at Salomon Brothers and a member of the company's top decision-making body, the executive committee. He leads one of the best traditional investment banking divisions on Wall Street in the past five years.
However, even if Zhuang Yuhai's current status is achieved, his annual income is only five or six million US dollars. And Li Xuan gave his fund manager a guaranteed salary of $5 million plus a high performance dividend. According to Li Xuan's preliminary terms, as long as the return rate of the investment fund in the first year can be more than 10%, the fund manager will be able to take at least $10 million in income from him by the end of the year.
A yield of 10% is not a difficult task for a top person in the industry like Zhuang Yuhai. And the treatment offered by Li Xuan was enough to make him excited. Therefore, after he received Yang Lingjun's invitation, he quickly made up his mind to fly to Hong Kong to meet Li Xuan.
After a long journey of more than ten hours, this Zhuang Yuhai still seems to be in good spirits. After he arrived in Hong Kong, he went straight to Li Xuan's house and took out the plan he had carefully prepared and talked about it.
Considering that Li Xuan is not a professional financial person, Zhuang Yuhai rarely shows off those professional financial words when he describes his thoughts. Instead, use the simplest and clearest words. Let this person, who is most likely his future boss, clearly understand what he means.
At this time, it is used to go around in obscure technical terms. The person who comes to show his high style will definitely die quickly. It's like the quadrennial presidential election in the United States. It is often referred to as the best opportunity for newcomers to learn English. Candidates for Congress, Governor, and President never use too advanced vocabulary and grammar when giving speeches to their constituents.
They use only the simplest language so that even illiterate voters can understand what they are saying. As for those things that are very stylish, they can be used for competitors and the media.
After listening to Zhuang Yuhai's words, Li Xuan has a deeper understanding of the stock market, bond market, and financial derivatives such as futures and options, and has some understanding of the recent trend of international bulk trading materials such as oil, gold, and soybeans. This made Li Xuan at least recognize the professionalism of Mr. Zhuang Yuhai in front of him.
"Mr. Li, do you have specific requirements for the investment direction of the fund?" Zhuang Yuhai asked. The best way to do this is, of course, to diversify your portfolio.
"Mr. Zhuang, you also know that the Dongfang Electronics Company under my name is engaged in emerging industries. Therefore, I naturally hope that the investment fund can pay more attention to companies in the high-tech field. For example, the computer industry and the biopharmaceutical industry, I think the prospects for the development of these fields in the next 20 years are very good!
Of course, these are long-term investments, and for Wall Street elites like you, every financial shock is the best opportunity to make money! For example, the current political outlook in Hong Kong is a bit confusing, and I think the Hong Kong dollar exchange rate is likely to fluctuate violently next year!" Li Xuan said with a light smile.
Zhuang Yuhai frowned, the exchange rate market can be described as weird. Who can say what will happen next year, but Li Xuan looks very determined. The boss was overconfident and it was never good news for him. Because this is likely to cause bad things for laymen to lead insiders.
"Mr. Li, if you would like me to be in charge of the investment fund. How much authority can you give me!" Zhuang Yuhai stared at Li Xuan's eyes, and said solemnly.
"In general, I don't interfere with the specific management of the fund. But if you come across some heavy dà investment opportunities. I want me to be in control! But rest assured, there's no absolute certainty. After all, these funds are my own money, and if it causes heavy losses. The person who should cry the most must be myself!" Li Xuan said with a smile.
Zhuang Yuhai sighed slightly in his heart, involving hundreds of millions of US dollars, the other party really would not give him the right to exercise arbitrarily. However, Li Xuan's requirements were at least within the bottom line that he could accept.
The first meeting between the two sides was quite pleasant, and Li Xuan couldn't make a decision immediately. In addition to Yang Lingjun's recommendation of his classmate in middle school, there are several other candidates recommended by headhunting companies, both Chinese and white.
Li Xuan met with them one by one in the next month or so. After several rounds of face-to-face communication, Li Xuan finally decided to let Zhuang Yuhai take control of the newly established LH investment fund. "LH" is an acronym for Li Xuan's Cantonese pinyin "lei-hin".
Naturally, LH Investment Fund will be headquartered in Hong Kong, and Zhuang Yuhai will join LH Investment Fund immediately after resigning from Salomon Brothers. The current LH fund is still just an empty shell, and Li Xuan completely delegated power to Zhuang Yuhai, and he himself recruited all kinds of personnel needed by the investment team.
In addition to setting up the LH investment fund, Li Xuan is always very busy before the New Year. The company's various summary meetings and celebration parties, he, the big boss, will definitely attend to boost morale and reward advanced personnel.
With the advent of the most important Thanksgiving day of the year in the West - Christmas consumption season, a number of new products under the Oriental Company have been launched. And the most striking of these is undoubtedly the new arcade "1942" of the Oriental Game Company.
This is a new game product launched by Oriental Game Company after more than a year after the last "Kung Fu" arcade machine. In the past year or so, Oriental Games has continued to produce arcade products, but they are all new versions of old games, or sequels of old games. So much so that Sega, which had been silent for a while, began to shout again, declaring that Oriental Games had lost its creative inspiration.
And Oriental Games has now finally hit back with its second shooter after "Tank Wars". The launch of each new arcade machine always causes a sensation and craze, and "East" is gradually becoming an excellent brand that is respected and recognized by game fans around the world.
"1942" came with the blood of war, and the biggest highlight of the new game is the marshalling design of enemy aircraft. From the least two sorties to the maximum of ten, from echelons, columns, horizontal formations, to wedges, serpentine formations, etc. Smooth game control, deafening roar of planes and exploding music will give players an adrenaline rush.
The hot sales of "1942" have hardly aroused Li Xuan's excitement, and Oriental Games Company already has an invincible domineering spirit in the arcade market. As a result of the success of 1942, Oriental Games' first battle game will continue to skip tickets, and the game development team is ready to spend more time crafting the game even better.
Along with the arcade board 1942, there is also a cassette version of the FC game. At Christmas 1982, FC game consoles were still the most popular Christmas gift for young boys in the United States. However, Oriental Games' competitor in the field of home game consoles, Atari ushered in a heavy rout.
As Atari liberalized the barriers to entry for its own console platforms, a large number of shoddy third-party games were rampant. In the past two years, with the explosive growth of the game market, many game companies have made a lot of money. Even a company like Atari that failed in the competition with Oriental Games had a comfortable life. It's just that I haven't been as proud as before.
The U.S. real economy has been in recession for 18 consecutive months, which has led companies in many other industries to target the game industry, which is easy to make money. In later generations, there were many enterprises in China that engaged in nonsensical diversification, such as a well-known Internet company to raise pigs, a famous steel company to sell soda, and so on. The same was true in the United States in 1982.
The New York Post recently reported that Quaker, a world-renowned food company, has also joined the game production army. Founded in 1901, Quaker is one of the famous oat manufacturers in the United States, and Quaker oats are one of the staple foods of countless families' breakfasts. However, the level of Quaker's game making is obviously much worse than making oats. Its games are frequently complained about by players because of their poor quality. (To be continued......)