Detroit, Michigan, USA, Hilton Rooftop Restaurant

"Mr.Ye, I also started as a private equity fund, and no fund manager will think that he manages too much money to be busy, Buffett's partner fund is now 3.3 billion US dollars, and the RMBT I manage also has 2.5 billion US dollars in assets, and Merrill Lynch, the G3 fund, has not even reached the scale of 1 billion US dollars, I can't understand what is your original intention of setting the subscription limit for a single institutional investment? What is the purpose? ”

Jordan Belfort's question actually puzzled him for a long time, for a fund manager full of self-confidence, the larger the amount of funds that can be managed, the greater the chance of success, of course he knows that the scale of Merrill Lynch this G3 fund is expanding every week with the continuous increase in performance, he also knows that Jiang Yelin must have used 1:1 financing leverage, compared to the leverage ratio of the futures and foreign exchange markets, the 1:1 financing leverage ratio of the brokerage credit account is the safety factor should be quite high, but, Since there are investors who are actively subscribing, why should they turn away the new subscription funds at almost zero cost? Belfort was puzzled by this question.

"Mr. Belfort, I can only say that the G3 fund is an aggressive and aggressive stock fund, so the first thing we consider is to control the risk, you also know that the liquidity of the big blue chips is very bad, otherwise I would not have come to talk to you today about the business of borrowing and lending securities from RMBT, because we need to control the risk, because we can't let our customers put all their eggs in one basket, so there will be those thresholds and the setting of a single subscription limit for a single account, we hope to cultivate long-term loyal customers of the G3 fund, rather than subscribing to speculative funds redeemed tomorrow, I don't know if my explanation is satisfactory to you?"

Jiang Yelin's words sounded like an explanation, but Belfort still felt incredible, but Jiang Yelin's next words made him pause,

"Mr. Belfort, in fact, I think that trust funds like RMBT can be subscribed to funds by diversifying investment, such as G3 funds, this weekend's subscription, the single subscription limit of institutional accounts has been temporarily raised from 3 million to 10 million, you must be optimistic about G3 funds, you can open a RMBT credit account at Merrill Lynch, apply for subscription of 10 million shares, and wait for next weekend to open for subscription again, if you are still optimistic about G3 funds, then continue to subscribe......

In view of the current situation of the G3 fund, we feel that the biggest moment of the risk period has passed, so the subscription limit for institutional and individual accounts is only limited to the single subscription limit, theoretically you can subscribe at least 50 times in a year, and, according to the progress of the subscription and the operation of the fund, we do not rule out continuing to increase the upper limit of a single subscription......"

Jiang Yelin looked at the Belfort in front of him with a smile, but he was more determined to continue to adopt the method of hunger marketing, to make the subscription of the G3 fund a spiritual symbol and fashion trend in the industry, to make the subscription of the G3 fund a scarce opportunity that everyone is eager to get but not at hand, and to create a legendary story of an ace fund, and this qiē is just the beginning.

"Is it true that the subscription limit for this weekend can only be 10 million shares? That's far from enough to hedge the risk of our securities lending on General Motors......" Belfort scratched his head, feeling that he was a little difficult to ride, but Jiang Yelin's answer was very firm,

"Mr. Belfort, if you believe that the prospects of the G3 fund are bright, then as I have always said, it is worth buying at any time during the rise, in addition, you can also subscribe to other funds in the business department of Merrill Lynch, as of the end of this week, the newly established funds of our central business department in addition to the G3 fund, there are also G31 and G32 funds, these two funds are open to investors to subscribe, and at the same time can also subscribe to the G3 fund, of course, for the sake of controlling the risk, the proportion of a single fund subscribed to the G3 fund cannot exceed 50%……”

"G31 and G32 funds? We don't have much interest in Merrill Lynch's other funds...... Are there any restrictions on the subscription threshold and ceiling of these two G31 and G32 funds? In addition, why didn't Merrill Lynch simply make the G3 fund a public fund? What I mean by this is that G3 funds can be traded directly on the stock market, rather than just subscriptions and redemptions, as is the case now......" Belfort felt a little bit led by the nose, which made him feel competitive.

"Well, at present, we don't consider putting the G3 fund on the market for trading, in fact, Buffett's partner fund has been a private equity fund for 30 years, isn't it?" Jiang Yelin didn't explain too much, Belfort actually guessed that the restrictions and terms of public funds are much greater than those of private funds, including investment direction, proportion, investment amount of a single stock, and so on, so private equity has the benefits of private placement, G3 Fund is actually Merrill Lynch's internal private equity fund, but in addition to opening subscription to individual investors, it also accepts subscriptions from other funds under Merrill Lynch.

"In addition, the G31 and G32 funds can be regarded as G3 funds that lower the threshold to meet the needs of general investors, the same is to announce the net value and open subscription at the end of each week, announce the position portfolio at the end of each month, dividends and ex-rights once a quarter, and make an appointment 24 hours in advance on weekdays to handle redemption, the threshold for individual investors is 50,000 US dollars, the threshold for institutional investors is 200,000 US dollars, the single subscription limit for individual investment accounts is 3 million, and the single subscription limit for institutional investors is 10 million, of course, I would like to remind you that most institutional investors still choose to subscribe directly to the G3 fund, not to mention that the upper limit is now 10 million shares at a time, which is enough to meet the investment requirements of most funds! ”

At this time in 93, there were many investment funds and trust welfare plans in the U.S. securities market, but most of the funds were only tens of millions to hundreds of millions of funds, you think about Buffett's partner fund for 30 years, and it was only 3.3 billion US dollars, and most public funds have a limit on a single investment, such as no more than 5%-10% of the fund's capital size, and trust funds like RMBT hold GM stocks and bonds. It is just a special case of a type of internal related party transaction.

"Mr.Ye, the 2.5 billion assets of RMBT under my management, are you interested in being my deputy, as the investment director of the RMBT Trust Fund, I can give you an annual salary of 200,000 plus a commission of 3% of the net profit at the end of the year...... Your annual salary at Merrill Lynch is probably only $100,000, right? Jordan Belfort's eyes rolled, and he actually got the idea of this guy Jiang Yelin.

"Thank you for your kindness, Mr. Belfort, for the time being, I have no plans to leave Merrill Lynch, not to mention that you manage the general pension medical insurance trust fund under UAW, and almost all important investments must be authorized and approved by the board of directors of Guò, right? Otherwise, I will now sell 18.3 million shares of GM shares to withdraw funds, and then I will also sell my holdings of GM's 3-year corporate bonds, will the board of directors agree? Surely not, right? You see, I think you, the president and chairman, make a lot of money looking glamorous, but compared to me, you have too little freedom, and it's no different from retirement......"

Jiang Yelin's answer is not Belfort's expectation, the chairman and president of RMBT only obtains the investment license of the board of directors below the limit of 100 million US dollars within the scope of his authority, and the investment of more than 100 million yuan needs to be approved by the board of directors, and the RMBT trust fund mainly adopts long-term investment to enjoy dividends and dividends to improve returns, similar to the Merrill Lynch G3 fund The way of financing plus short selling a stock is absolutely not feasible in RMBT. The slightest mistake may lead to lawsuits and accusations against hundreds of thousands of retired workers!

"Mr.Ye, you haven't considered setting up a private equity fund to make a lot of money for yourself? In my opinion, with the brilliant performance of the G3 fund, Merrill Lynch only gives you an annual salary of $100,000 is a joke, didn't Goldman Sachs, Morgan Stanley and Salomon Brothers, including Credit Suisse First Boston, send headhunters to you? In my opinion, a mere $100,000 is an insult to the G3 Fund and you! Belfort looked like he couldn't dig into the corner of Merrill Lynch.

"Mr. Belfort, thank you for your reminder and kindness, with my current resume and career qualifications that have only been with Merrill Lynch for more than a month, I think an annual salary of $100,000 is an acceptable result, and you also know that doing our job on Wall Street does not rely on fixed salary income but performance bonuses......" Jiang Yelin said half of his words with a smile, making Belfort feel itchy, and couldn't help asking, "So how many dividends and bonuses does Merrill Lynch promise to give you at the end of the year?!" Forgive me for being curious! ”

"This, then I'll just say it, the latest contract supplement states that this year's annual performance bonus should be 3%-8% of the annual net profit of Merrill Lynch Securities during the management of the G3 fund, and the threshold is that the net profit must reach 10 million US dollars, if it reaches the passing line of 10 million US dollars, then I can get 3% that is, 300,000 pre-tax bonus, and then for every 1 million US dollars of profit, the performance bonus of 1% of the total profit will be increased......" Jiang Yelin's answer surprised Belfort.

Of course, such as G3 fund, the commission and rate generated during trading and financing are actually the income of Merrill Lynch, and the net assets of many funds in the securities market are only tens of millions of US dollars. The G3 fund managed by Jiang Yelin has to create a net profit of more than 10 million US dollars for Merrill Lynch Securities a year to have a performance reward, if it is not for the scale of the fund to reach hundreds of millions, this condition is actually quite harsh.