Detroit, Michigan, USA, the office of the president of a pension trust under UAW

"Mr. Belfort, it's a pleasure to meet you, I'm Django Ye from the Merrill Lynch Securities Center Sales Department, this is my business card......" Django Ye in a suit and leather shoes is confident and calm, now he has become a trapeze artist in the clouds, the schedule is full, this is the first weekend of February, just this past Friday trading, GM's stock price quickly rebounded to $59 in the morning and then turned down, The close was a dreaded $56.125, with Merrill Lynch's G3 fund shorting GM shares, allowing the market capitalization to soar from 1.7216 at Thursday's close to 1.8077 at Friday's close, with the G3 fund's net worth reaching $450 million.

Jordan Belfort was born on Wall Street, worked as a stockbroker in Salomon Brothers and Credit Suisse First Boston after graduating from business school, and then set up his own private investment fund, and then his company was acquired by UAW's UAW UAW MedicalBenefitsTrust Fund, of course, in fact, it was RMBT Tongguò that acquired Belfort's company and obtained a genius-level young president, Belfort, who was born in 62, is known as the wolf of Wall StreetHe now manages nearly $2.5 billion in RMBT's assets.

The RMBT Medical Trust under UAW is the third largest shareholder of General Motors, holding 18.3 million shares totaling 4.95% of General Motors stock, Jordan Belfort is both the chairman and president of RMBT, and serves on the board of directors of General Motors on behalf of RMBT, of course, as the third largest shareholder of General Motors, the RMBT Trust Fund holds a three-year corporate bond worth $1 billion worth of GM bonds with a coupon rate of 9% per annum, in addition to GM shares.

"Mr.Ye, congratulations to Merrill Lynch Securities for becoming the exclusive underwriter of the Saturn Motors IPO plan under General Motors, the board of directors has high hopes for the Saturn listing plan, and I believe that after the previous twists and turns, the cooperation between the two sides will open up a new situation in the future, today is the weekend, if you don't insist repeatedly, I am not waiting for you in the office at this time, but playing golf with friends on the golf course......" Jordan Belfort married his second wife two years ago, This also indicates that the former wolf of Wall Street is actually in a dormant period, and compared with the aggressive private equity hedge funds of the year, RMBT's foreign investment is much more moderate and conservative, which is also in line with his original intention of recuperation, especially after almost facing accusations of defrauding customers three years ago.

As a director of General Motors and the helm of the third largest shareholder of RMBT, Belfort has paid great attention to the game on the recent magnificent GM stock price, of course, his RMBT fund is based on a conservative style and has not joined the ranks of shorting GM, which makes the assets of the RMBT fund shrink by 96% along with the GM stock price, which is not an acceptable situation, but as the third largest shareholder, especially as a trust fund that is deposited as a general pension medical plan, Rashly shorting the shares he holds, even if he is the president of RMBT, he will face questions from the boards of directors of both sides!

Of course, the stock market has ups and downs, and fluctuations in market value within a certain range are commonplace for major shareholders, especially for these strategic investors who have held GM shares for a long time, a dividend yield of more than 10% is the target income of fund holdings, otherwise how can GM be called a big blue chip stock, in the US stock market, the purpose of trust funds holding big blue chips is to enjoy a dividend yield higher than the income of savings and treasury bonds, of course, it is better to catch the ride of stock price growth - market value growth - asset growth.

Whether a company's operation is healthy or not, not in the growth of profit margins, but in the growth of cash flow and dividend yields of annual dividends, as long as it can achieve abundant cash flow and stable dividends, shareholders of long-term investment will be satisfied with such returns, rather than short-term fluctuations in stock prices, of course, if there is a black swan event, it is not excluded that these large and small shareholders will short their own stocks together in order to avoid risk, of course, the board of directors of both sides is not a decoration, heavy investment or exit from the investment decision, It can only be implemented with the approval of the board of directors.

"Mr. Belfort, I won't say polite words, today is to borrow and lend securities to RMBT, the current market of General Motors' liquidity is insufficient, which directly leads to the negative impact of Saturn's IPO plan, Merrill Lynch, as a market maker of General Motors, wants to borrow 18.3 million shares of General Motors from your RMBT, with a term of one year, and the interest rate is to add 3 percentage points to the yield of the 10-year Treasury bond in the United States, I believe that this transaction is a win-win result for both parties!"

Jiang Yelin said his intentions directly, but Jordan Belfort fell silent when he heard this, and said after a while, "Mr.Ye, I have tracked and studied your G3 fund, and I have to admit that your sensitivity to the market is stronger than when I was most confident, however, how can I not get my shoes wet when I often stand by the river, and the increase in the net value of the G3 fund mainly depends on short selling at a high level, which actually has a great risk of saving, if I am your opponent, I will mobilize enough funds, when you sell a lot of short, Suddenly pulling up the stock price, you must know that even if it is a big blue chip stock, the number of shares circulating in the market is limited, and as long as you want to raise funds in the market, the funds are actually unlimited......"

"You're right, so the G3 fund only invests in big blue chip stocks, whether it is General Electric or General Motors, including Ford Motor, it is the first choice for investors to invest in blue chip stocks...... Jiang Yelin's answer is actually to avoid the important and light, Belfort interrupted him and continued, "With all due respect, because the G3 fund invests in big blue chip stocks, the risk of short selling is higher than short selling other junk stocks or theme stocks, if you want to make money on blue chips, it is safer to short than to go long!" ”

"Mr. Belfort, I agree with you, so, the G3 fund is just a day trader, although we short the blue chip stocks but never overnight, before the close of each trading day regardless of whether we win or lose we will close the position, this is the biggest difference between the G3 fund and other funds, we reject any black swan event after the close, we are not afraid of short, I have always believed that if the performance of listed companies is good, the stock price will rise, and in the stage of the stock price rise, it is not too late to buy at any time, so on the surface we are the biggest short selling speculators, in fact, we are the blue chip stock price rise promoter!"

Jiang Yelin's words made Belfort cry and laugh, and couldn't help but shake his head and said, "You are the promoters of the stock price rise? Why can't I see it at all? Am I dizzy from old eyes? According to my statistics, General Electric's stock price has fallen by 2 percentage points from the beginning of the year, Ford is better, but it has also fallen by 1.8 percentage points, as for General Motors, not to mention, the price of 62 and a half yuan at the end of last month has now fallen to 56.125 US dollars per share. ”

"Well, Mr. Belfort, the stock price fluctuations for a time are not a problem for big blue-chip companies like General Electric, General Motors and Ford Motor, in fact, because we are optimistic about these big blue chip companies, so we will buy the shares of these companies, as for the high short selling you said, it is nothing more than because there are too many retail investors who follow the trend to grab chips and take a ride in the short term, so we have adopted a prudent approach, so that the fluctuation and performance of the stock price can match the set instead of diverging ......"

Talking nonsense with his eyes open refers to Jiang Yelin's current cousin, this stall owner of Panjiayuan mixed with a big family has no teacher and knows people and talks nonsense, coupled with the experience of studying acting classes in film schools, he looked at Jordan Belfort opposite in a serious way at this time, and for a moment it really made Belfort feel that he had mistaken the person in front of him, Nima's family is not a short arbitrageur but a long-term bullish investor? The owner who can say that the straw is a gold bar used to think that he was the No. 1, but now compared with the manager of the Merrill Lynch G3 fund, it is really far behind.

"Mr.Ye, personally, I appreciate you and your G3 fund's performance this year, the winner is not blamed, however, as a director of General Motors and the chairman and president of the third largest shareholder RMBT, I am responsible for RMBT, responsible for GM, if I can't really understand your future plans, I can't obey my fate, I can only refuse Merrill Lynch's request for securities lending......" Belfort decided to retreat into the bottom line and plan of the kid in front of him, What the hell do Merrill Lynch and G3 Fund want to do?!

"Mr. Belfort, I understand your cautious and responsible attitude towards RMBT and GM at the moment, but the reason why I am here is precisely because I don't want GM and his shareholders to have unnecessary losses in future stock price fluctuations, which may be caused by a temporary decline in the stock price, or because the confidence of the shareholders is shaken, if the future performance of General Motors is not good, the stock price will fall, then this kind of loss is completely unnecessary, and what is more worrying is that if we are optimistic about the future of General Motors, and in fact the stock price rises rapidly after a short fallAt that time, the losses that have been formed will not be able to make up for it, this is the reason why I am here, I hope you can understand! ”

Before Jiang Yelin's words fell, Belfort quickly said, "Mr.Ye, Merrill Lynch Securities is borrowing and lending securities to short General Motors, right?" As the third largest shareholder, can we watch you borrow shares from us and smash the stock price down, so that we lose money both on paper and in fact because the market value of the 18.3 million shares of General Motors we hold has decreased? Truth be told, a 9% annual interest rate is simply not enough to make up for our loss in GM's market capitalization! ”