Frankfurt, headquarters of Deutsche Bank.

When Werner. Heisenberg's news of the additional shorting quota for hedge funds did not attract enough attention. But then more and more traders began to report upwards, and the news attracted a lot of attention from Deutsche Bank.

"What happened?"

Managing Director of the Trading Department, Madhavi. Lahr urgently gathered the star traders together and carefully asked for the specifics.

"Element, a hedge fund in the United States

Capital suddenly demanded an increase in the share of the Volkswagen Group shorted shares, and the increase was as high as 75%, almost doubling. God, if they were granted their request, it would be equivalent to them betting almost a third of their entire total money on shorting the shares of the Volkswagen Group. ”

Warner. Heisenberg said with palpitations, the expression on his face faithfully reflecting his heart at the moment, that is, shocked.

Generally speaking, no matter what type of hedge fund, its largest heavy holdings do not exceed one-tenth of the total size of its funds under management, which is a typical "don't put all your eggs in one basket" hedging behavior. But for some smaller hedge funds, there is a more aggressive approach to investing. For example, the hedge fund called ElementCapital originally shorted nearly one-sixth of its total funds under management on Volkswagen Group. This was originally considered to be a very extreme approach in the industry, but now it has been added, how can you not let Werner. Heisenberg was terrified?

Of course, for hedge funds, this aggressive investment approach does not necessarily mean moral hazard, perhaps most of the money is the founder's own, just like the current quantum fund, in fact, most of the funds are already owned by the Soros family. Or maybe it's the decision-maker who is in a hurry to open the market. Gain fame and get more money under management. But for any purpose, this approach is definitely not to be encouraged.

"In addition to them, there's Caxton

Associates, MooreMacro and many other American hedge funds. "Werner. Heisenberg continued, "I don't know why. It's as if the entire hedge fund world is crazy, especially the hedge funds in the United States. ”

"You're in a similar situation?"

Medhavi. Lal pondered for a moment, and when he asked the other traders, he received almost the same answer, "So they collectively believe that Porsche will not complete the acquisition because of the ambiguous statements made by the Porsche family?" That seems too much to say. ”

For the news released by the Porsche family, Madharvi. Naturally, Ral got the news as soon as possible, and he and his colleagues only analyzed it a little. It was determined that this was fake news released by the Porsche family. Except that there is no definite conclusion, Schwartz. Porsche's identity also became a problem. As one of Germany's top brokerages, Deutsche Bank's analysts quickly came to the same conclusions as other market analysts.

Medhavi. Ral even thinks that the "performance" of the Porsche family is clumsy and naïve, and that anyone who has a little eye or understands the grievances of the Porsche family will not understand it as they want to lead.

But now the problem has arisen: the Porsche family is likely to continue to aggressively take a stake in the Volkswagen Group, while hedge funds are poised to think the takeover is unlikely to succeed. It's almost a clear judgment that makes Medharvi. Larton was confused.

"It doesn't make sense! I can't make sense! ”

Medhavi. Ral tugged at his hair and thought hard. Soon, the originally meticulous hairstyle was messed up like a bird's nest.

The traders saw this scene and smiled at each other. They all shook their heads. Medhavi. Lal is handsome and tall, and is a typical Germanic man. On weekdays, he also pays attention to appearance, custom-made suits, leather briefcases, and high-end leather shoes that are always spotless. And, of course, a jar of hairspray hidden in his briefcase, which he was ready to use at any time to get his hair styled.

It is precisely because of knowing Medharvi. Ral's "fetish". That's why the traders looked at his messy hairstyle at this time. Their snickering didn't last long, though, and soon one of them had their phones vibrating, first the first, then the others, and then everyone else knew the news.

"Soros is here?"

Medhavi. Ral's brow furrowed. "I see, no wonder! Since he was the one who came out and appeared at the headquarters of the Volkswagen Group, it seems that he did intend to get involved in the deal. Presumably because of this news, hedge funds around the world have joined forces to short the shares of Volkswagen Group! ”

"That's how it should be!" Warner. Heisenberg also looked suddenly enlightened, "At the same time as him, there was also a hedge fund boss, Mr. Zhong Shizhong from Hong Kong Tianyu Fund. However, according to CNBC, the gentleman has dismissed the possibility of being involved in the acquisition. In this way, it is certain that Soros will definitely be involved, and for Zhong Shi, it should not, after all, judging from his public statements, this person has never lied. ”

"If that's the case, then we don't need to pay attention to him!" Medhavi. Ral waved his hand, and lightly ruled out the biggest X factor in the incident, "Werner, how many shares of Volkswagen Group do we hold, and can we support these hedge funds to short?" ”

Deutsche Bank, one of the largest market makers in the Frankfurt market, owns a significant number of shares in the Volkswagen Group and is one of the minority shareholders of the Volkswagen Group. Of course, its stake is for long-term investment, and it is easy not to sell, even if Porsche annexes the Volkswagen Group, it will not have much impact on their investment. For the sake of market makers, they also often lend this part of the stock to short it, taking the opportunity to earn part of the interest.

"There is no change in the 3.5% stake." Warner. Heisenberg replied in a deep voice, "I have already lent out 2.1% in the early stage, and only 1.4% of the equity remains, which is simply not able to cope with the demand from hedge funds." I estimate that if you want to meet the shorting requirements of hedge funds, you need to increase to at least 5% equity or more. But it is not possible to increase our stake in the Volkswagen Group at this time. Their share prices are simply too high. ”

"Yes, their stock prices have long since deviated from the fundamentals." The other is called Andrey. Carlsen's traders echoed the words, "Combined with the expectation of growth, their share price is at most €70 to €100, which is still significantly overvalued." If we increase our holdings now, we are obviously wronged. ”

"That's what I thought too!" Warner. Heisenberg nodded approvingly. "If we can't increase our holdings, then we'll have to look for cash in the market. Gentlemen, mobilize your contacts as soon as possible and go to the market to find cash that you may be able to borrow. By the way, the interest rate can never exceed the interest rate we lend. ”

After waving the traders, Madhavi. Ral sat in the conference room and thought for a moment, then dialed a phone call.

"Hello, Mr. Roger." Medhavi. Lal said respectfully, "I'm Medharvey from Deutsche Bank. I don't know how you've been doing lately? I don't know if it's available. I'd like to treat you to a cup of coffee. ”

"It's Mr. Madhavi!" There was a hearty laugh from the microphone, "Coffee is not necessary, Mr. Madhavi called for something, about Volkswagen Group shares?" ”

"How do you know?" Medhavi. Ral blurted out in surprise, and then he reacted, "Other colleagues have already looked for you?" Mr. Roger? ”

"Not bad!" The gentleman, Roger, smiled and said, "Madhavi, your news is seriously behind schedule. Before you. Delo Securities and Hadir Asset Management have already called me to borrow equity from Volkswagen Group. If not, you will definitely make this call. I agreed to lend them the vouchers. ”

"What?" Medhavi. Ral's heart sank, he knew that the companies Roger was talking about were also among the few well-known market makers in the Frankfurt market. And he also knew very well that if it weren't for the large scale of his own borrowing of bonds, Roger might have already lent out the cash bonds, "They have already acted?" It seems that hedge funds are very determined to short Volkswagen Group. It has seriously affected market makers. ”

"Half a year, 3% annual interest rate, this is the condition of my loan!" Roger quickly offered his own conditions, "1.5% of the shares, which can be lent to you in full." Medhavi. You should know very well that if you look at the past friendship, I will definitely not leave it to you. ”

I have to say that the conditions for this securities lending are much higher than the market price, but at this time, it is basically impossible for Madhavi to find a larger scale of securities borrowing and lending in the market, so he can only pinch his nose and agree.

"None of this is a problem!"

Medharvey only pondered for a moment, and then resolutely responded, "But Mr. Roger, I have a question, aren't you worried that the Volkswagen Group will really be acquired by the Porsche Group?" ”

"Worried?" Roger chuckled, "Why should I worry? This is a civil war in the Porsche family, and it has nothing to do with me as an outsider. Besides, Porsche's acquisition of the Volkswagen Group is not necessarily a bad thing, and now that Volkswagen's front is too long, it's time for a change! ”

As a minority shareholder, the gentleman named Roger is nothing more than sitting back and watching the Porsche family fight, and no matter which side it is, it needs to win over people like him. Piëch needs their support to defend Volkswagen, and the Porsche family needs them to sell their shares. Whatever the final outcome of the struggle, in the end he was able to transfer the shares at a higher price. And most importantly, even if the Porsche family controls the Volkswagen Group as a whole – i.e. 75 per cent – a shareholder like him can take the ship and make long-term investments.

So in this case, they lend out the stocks, and there is no psychological pressure at all.

"It's not just me, but even the other shareholders, I've heard they're on the move." Roger then broke another news that surprised Medharvey, "A good show is going on, maybe Piëch himself has lent his shares." Know that this can quickly drain Porsche's cash! ”

"Are they going to force them out?"

A thought quickly popped into Medhavi's mind, but the next moment he denied it, "How can this create a void?" There are at least 30% of the outstanding shares in the market, and the turnover rate of Volkswagen Group shares is as high as more than 10% every day, so it is absolutely impossible to form a short squeeze. ”

His attention was quickly drawn to the phrase "fast consumption of Porsche cash", but it did not go in the right direction, which has to be said to be a huge regret. But at that time, who could have imagined.

After borrowing 1.5 percent of the shares, Deutsche had a staggering 5 percent of the Volkswagen Group's stake in hand, and Madhavi asked traders to announce that Deutsche Bank had a large stake in the Volkswagen Group and that hedge funds were welcome to come and borrow money. For a time, hedge funds from all over the world were calling German traders, hoping to borrow shares in the Volkswagen Group to short.

Because of the hype of market makers, more and more funds have been made to short bulk groups. With fanning the flames, the fire is simply burning more and more. (To be continued......)

PS: Thank you book friends for the moon and the moon, the flowers bloom early in spring, the night rain in Xiaoxiang, cpower, qhiou, njluyujiang, and 890 for voting for the monthly ticket! Thank you for the secret reward again! I'm sorry it's a little slow again.,It's been very strict recently.,Ambiguous plots are no longer allowed.,Although the author hasn't touched on this aspect.,But there are also places where there is a suspicion of rubbing the edge.,Desperately revising......