Merrill Lynch Center Business Department, General Manager's Office, World Financial Center, Manhattan, New York, USA

"Django, day trading and arbitrage is not impossible, but few people do this on the big blue chip stocks, one is that the big blue chip stocks are not active, the holders are often long-term funds and institutions with strong financial strength, and the other is that if you toss the stock price up and down, it is equivalent to moving other people's cheese, when you do long, of course, everyone is happy to see it, waiting to sit in the sedan chair you carry, but once you backhand short, it is likely to encounter resistance, recently there are a few old friends who are in the same industry called me at night, Ask us what Merrill Lynch wants to do? How do you tell me to answer? ”

Chambers said these words in a deep voice, testing Jiang Yelin's reaction, to say ambitious, the legendary manager of Merrill Lynch Securities Mesozoic has it, but the older he gets, the more cautious Chambers's character becomes, standing and earning money is a good thing, but you also have to look at the surrounding scenery, leaving a way out for your peers, although Merrill Lynch has become the largest securities company in the United States after the rapid development of the 80s, but in the field of investment banking, Morgan Stanley, Goldman Sachs, Lehman Brothers and Salomon Brothers are all biting, It doesn't hurt for G3 funds to go long on big blue-chip stocks, and short-selling arbitrage is repeatedly tossed, and it is inevitable that other institutions and funds that allocate big blue chips will be a little unbearable.

You must know that the G3 fund is an internal fund of Merrill Lynch, and the buying and selling of traders in the Merrill Lynch market on the New York Stock Exchange is regarded as the buying and selling led by Merrill Lynch.

"Well, Boss, the major brokerages and investment banks themselves are competitive, the market is so big, we have more meat in the pot, and there is naturally less meat in the pot, the fund portfolio is the best choice to attract customers and funds, and maintaining a high-yield fund has a decisive role in our development of customers. As long as the rate of return of our fund remains stable and grows, I believe that the big boss above will not give up his martial arts and ask us to give up, right? ”

Jiang Yelin's answer is decent, but obviously this kid is also aware that the G3 fund has been in the limelight too much recently, and the frequent trading arbitrage during the day has tossed the stock prices of GE and Ford up and down, which is likely to make the followers and institutions that do the opposite suffer a lot of losses, in fact, if the shares of listed companies do not pay dividends, if they hold all the way, it will only bring profits and losses on the books, and short selling and short buying are actually just zero-sum games, which can be every dollar that the G3 fund earns on GE and F stocks. Of course, there are often no wet shoes when walking by the river, Jiang Yelin is not a fairy, and the G3 fund will always have a moment when someone is secretly calculating a loss, but sooner or later.

What Jiang Yelin has to do is to make a big profit and lose a little, and strive to be ahead of the opponent every step of the way, there are many invisible and visible opponents in the market, that is, the proprietary funds of major securities companies and those private equity and hedge funds in the market, maybe they are already eyeing the competitors who are ready to bite Merrill Lynch Securities and G3 Fund, as for individual investors, the vast majority of retail investors have subscribed to funds and portfolios through guò and handed over the task of investment and financial management to the securities companies and brokers who opened their accounts, and the rest, It's the same institutions and other funds as the G3 fund, and everyone is a competitor!

"This, Merrill Lynch Securities performance is king, can make other competitors eat deflated we stand and sit to make money, of course the big bosses above are happy to see it, but the securities industry, there are also unwritten rules, many times Mu Xiu in the forest wind will destroy it, G3 Fund is now in a situation, in fact, I want to stand on the edge of the cliff, although the previous operation has been very smooth, but that is to hit the opponent by surprise, according to the news I got, some strong opponents, has been ready to Merrill Lynch Securities good-looking... …”

Chambers is standing in the same trench as Jiang Yelin, and the beating just now is just to let the young man in front of him know that no matter how talented and talented a person is, without the support of the company, without the support of the boss and the boss, there will be no big situation, and now I want to see what tricks Jiang Yelin can deal with, how can I hide the eyes and ears of competitors from the short sale and purchase of millions of shares on big blue-chip stocks, and the competition within Merrill Lynch will be ignored. The counterattack and suppression of external competitors will appear at any time, and when the time comes, G3 Fund and Jiang Yelin will lose the face of Merrill Lynch Securities and the central business department!

"Boss, no doubt about employing people, the third business department and I are very grateful to the company for the support given in the establishment and financing of the G3 fund, the current capital scale of the G3 fund, 98 million fund shares, the net value of 1.4795 US dollars / share, the net assets of the G3 fund is 145 million, and the financing leverage is 1:1, currently holding 4.4 million shares of General Motors' Class A common stock, holding cost of 57.50 US dollars / share, The total assets are 264.55 million based on the closing price of 60.125 of General Motors yesterday, if the company can give further support, such as putting the financing leverage to 1:2, I believe that at least in the short term, in the two stocks of General Motors or Ford Motors, I am confident to meet any challenges! ”

According to his calculation formula, the net assets of the G3 fund of 145 million yuan are now only used with 1 times the financing leverage, and if the leverage is magnified to 2 times, the asset-liability ratio of the G3 fund is only 67%, which can theoretically resist the impairment and loss of 33%...... Of course, the risk here is greater than imagined, and leverage magnifies losses when magnifying profits, strictly speaking, a loss of 33% is equivalent to the liquidation of the G3 fund!

"Django, the risk of direct financing leverage 2 times is too great, I think the top priority is to continue to open up the subscription, so that the share of the fund continues to grow, rather than relying solely on financing, the current financing amount of the central business department of 1 billion US dollars is stretched, I will consider reporting upwards to increase the financing limit of 500 million US dollars, in addition, I intend to open the subscription qualification of the G3 fund at the same time, all the internal funds of the business departments of Merrill Lynch Securities can subscribe to the G3 fund, of course, In order to avoid putting eggs in one basket, in case something goes wrong, a restriction is temporarily added, and the proportion of assets subscribed to G3 funds under Merrill Lynch Securities shall not exceed 30% of the fund's net assets, what do you think? ”

"Boss, the G3 fund is currently only for individual investors, rashly open the subscription of institutions and internal funds, I am afraid that in case of loss, I will become the sinner referred to by Qianfu......" Jiang Yelin obviously has not turned the corner, in fact, Chambers did this, in order to avoid the repetition of the internal competition of the G12 and G13 funds to dismantle the runway yesterday afternoon, hitchhiking can be taken, but the risk must be controlled, and internally, it is not allowed to tear each other down to earn their own money, This is the starting point for Chambers to open the G3 Fund to institutional subscriptions.

"Do our business, only flying against the wind has no way out, there is no word failure in my life dictionary, young man, I hope there is no word failure in your dictionary in the future, we can't allow even one failure, although the stock market is not a futures market, but because of the deposit of financing leverage, the so-called geniuses who have been liquidated and swept out of the house under various black swan events, which company has no shortage of such unlucky eggs in any year, you must always be vigilant in your mind, what should you do to avoid failure?

The bigger the size of the G3 fund, the heavier the weight on your shoulders, and I hope the G3 fund will be stable this week! Even if you give up the aggressive operation to maintain the current rate of return, then when the subscription is open on the weekend, I believe that there will be a new beginning, although the G3 fund is managed by Old Wood, but from next month the G3 fund will be fully responsible for you and report directly to me! I am ready to appoint you as the assistant general manager of the central sales department, and the annual salary will be increased to 100,000 US dollars! Well done! I'm optimistic about you! Chambers stood up and patted Django on the shoulder, but muttered in his heart that his eldest daughter Joan was not the same age as this Asian genius boy. If you train it well, the future son-in-law of the Fett family will also be settled.

GM's total share capital at that time was 370 million shares, Jiang Yelin bought 4.4 million shares of GM, and closed the position at the price of 62 yuan when the blue-chip sector rebounded together on Wednesday, and then on Thursday and Friday, the number of intraday transactions of the G3 fund decreased significantly, but it almost tossed out a turnover of 10 billion, and at the close of trading on Friday, the G3 fund shorted GM and won 1.5% of the income after closing the position, so that the G3 fund was the same as every Friday before, It is a short position when the subscription is open and the net value is announced on the weekend.

In the past four trading weeks in January '93, the net unit value of the G3 fund has skyrocketed from $1.00 to $1.5325, and the share of the fund has skyrocketed from the initial 800,000 to 98 million, creating a new fund's monthly return of 53.25%!

All the salesmen and fund managers within Merrill Lynch regard the G3 fund as a myth and legend of 93 years, especially the G3 fund is open to internal institutions and fund subscriptions, and the investors who have opened new accounts in Merrill Lynch and Merrill Lynch's internal funds have flocked in, because the characteristics of the G3 fund are very distinct: the first G3 fund only invests in large blue chip stocks, the second is that the fund shares can be redeemed within 24 hours after the appointment on a working day, and the third G3 fund announces the net value and subscribes to it every weekend. The fourth G3 fund announces the position portfolio at the end of each month, and the fifth G3 fund pays dividends and ex-rights at the end of each quarter! These five characteristics, coupled with the 53.25% fund appreciation income in a single month, make all investors go crazy and rush to the business department and various business outlets of Merrill Lynch, even if the threshold of 200,000 funds for individual investors cannot stop the crowd at all.