Chapter 80: Citi

Carefully collecting the keys, Huang ordered Lorraine to call Aubrey and Dutois. After spending so much energy, it was all for the "medicine" formula that Guy handed over, according to Lorraine's analysis, the current state of science and technology is not difficult in terms of raw materials, just some simple elements and organic substances. Similar to the current "medicine", the finished product needs to be composed of a variety of complex compounds, and has unique requirements in terms of spatial conformation, such as rotation and handiness, which have mature or semi-mature methods, and the real difficulty lies in the purity of the configuration, which seems to be a bit more demanding in comparison.

According to Lorraine, there are only a handful of companies that can produce "medicine" products with this purity, and unfortunately, none of them belong to China. When China was breaking the four olds, the United States had accumulated the most materials in the world, and Europe had completed its revival, which was also 20 years. Achieving your goals ahead of schedule only means that your expectations are too inaccurate – a bad plan is itself wrong.

Of course, for Huang Xuan, as long as there is a company that can manufacture, he is already very satisfied, so he doesn't care which country it is, but when it comes to medical "pharmaceutical" companies, not only him, but the entire Huang family has not been involved, and it will be a little troublesome to find it.

If you can't do it yourself, ask a professional to help.

Huang Xuan, who has won his mother's 0.5 true biography, immediately remembered Citi.

"Lorraine, help me find Aubrey and Dutois."

"Okay."

……

The banking syndicate is the leader of the entire capital market, whether in the United States or Europe, the banker will always be the center of businessmen, even businessmen like Ford and Rockefeller, they will not easily offend these financial giants - of course, in most cases, such businessmen have already put their feet into the banking world.

In the U.S., if you want to build a good relationship with industry, the first step is to build a good relationship with the bank – it's simple, convince the bank that you have the money. Whether it is an unnecessary loan, or no necessary deposit, it is a good tool to deal with, repaying the loan on time will increase the bank's credit evaluation of you, and borrowing and repaying the loan is an excellent way to enhance friendship, which is the same as socializing with little girls at school.

Compared with Wal-Mart, the world's No. 1 province, Citi is unusually strong. On Wall Street, the giants who stand tall always have their own unique methods, and such giants can be counted on one hand: Merrill Lynch, Citigroup, Morgan, Goldman Sachs, Bear Stearns, Chase Manhattan, Morgan Stanley. It is no exaggeration to say that these banking consortia occupy the highest peak of the capital market and dominate all small people. In the words of Mr. Marx, bankers are born to demand average profits in society. And the simplest explanation of this sentence is: bankers are trying to make the profits that most people can make with the least risk and other people's money.

Both Aubrey and Dutois are typical representatives of such consortia.

After watching a movie, it was Dutois who arrived first and brought another tall white man with him. But Huang Xuan was more expectant of Citi, so he had to ask them to wait for a while.

Dutois sat down understandingly, introduced his colleague through the translator, and said, "Mr. Huang, this is Dr. Kelly, the full-time asset manager of UBS Private Wealth Management, and Dr. Kelly is the second manager in the team we have drawn up for you. With that, he handed Huang Xuan a list.

“OK。” Huang announced the list of results, said hello to Kelly again, and chatted casually. This is an English-style character, with a slightly glazed eye, and only when it comes to the economic issues in which he specializes, he is more perceptive.

There are 8 people on the list, and 5 of them have a doctor in front of them, which at first glance looks very powerful. However, Huang Xuan does not have high expectations for the appreciation of personal assets, and he also does not care much about this list. He folded it and put it in his breast pocket, sat down across from Dutois, pulled out a few papers at random, and said, "How is the recent futures delivery?" ”

"It's going well, it's more than half done."

"Good." Huang Xuan nodded and said, "What about the Furnas Company?" I've read your proposal, but honestly, it's a bit complicated, and if it's not a bother, I'd like you to explain it to me. ”

Of course, it won't be troublesome, Dutois looked to the side, and said, "Dr. Kelly is familiar with this, and he completed the reorganization of the Furnas company. ”

"Huh?"

Kelly pushed down his eyes on the bridge of his nose, took out a stack of materials from his bag a little impatiently, and said in a very hurried voice: "Well, I have conducted a field investigation of Furnas Company, and I think it has several problems that need to be solved urgently, ...... of them."

"Dr. Kelly." Huang Xuan had to interrupt him: "We don't have much time, I just want to know if this company has been reorganized according to my requirements?" ”

"Yes." Kelly, who is supposed to be in his thirties, but it seems that his social experience is still stuck in the communication with his mentor, and he stammered: "But I think such a reorganization is wrong, and dividing a company into three departments that are not subordinate to each other can cause a lot of problems, Professor Delney has a tutorial that says......"

Huang Xuan breathed a long sigh of relief, and could only raise one hand again, and said with a stiff smile: "Dr. Kelly! Dr. Kelly? ”

"Yes!"

"Tell me, did you restructure the company as I asked?"

"Yes. But ......"

“OK。” Huang Xuan signaled for a pause: "That's enough. In front of this doctor, Huang Xuan felt that the ages of the two people were reversed.

Seeing that the atmosphere was a little cold, Dutois hurriedly "interjected" and said, "Mr. Huang, in fact, there is one more thing this time. ”

"Oh?" Huang Xuan refilled a cup of coffee for him.

Dutois took out a USB stick, placed it on the table and said, "Do you know John McLiweser?" ”

Huang Xuan opened his arms slightly, "No." ”

Here's some information about his new company. Well, this is a genius investor. ”

While Dutoit was wrestling with how to describe Milliwither, Aubrey walked in after the butler and said, "A genius loser, too." ”

Compared with the small villa of Huang Xuan and his son in São Paulo, this house in Nanjing can be called "Hao", not only has a large lawn that Europeans and Americans like, but also has its own back garden and Chinese-style pavilion, it seems that Mr. Aubrey likes this arrangement.

He passed through the Ivy League corridor and looked east and west behind Zhou Lian, but as soon as he walked into the living room, he heard the name "Mileywether".

Huang Xuan got up to greet him and said, "Coffee or tea?" ”

"Coffee, thank you." Aubrey walked in and sat down, but asked Dutoit, "You don't want to introduce Mr. Huang to JM's fund?" ”

"Do you think there's anything wrong?"

"Of course." Aubrey's face flushed, and he said with a thick neck: "McLiwether almost lost the entire Wall Street two years ago, and today a Swiss man said to my client, you should take a stake in JM, I heard you right." ”

"The investment itself was fine, it was just an accident."

"A $10 billion accident?" Aubrey shook his head.

Kelly also joined the discussion, and the three of them muttered more and more in English, and Huang Xuan had given up on understanding what they were saying, but leaned back on the sofa and asked Lorraine, "What are they talking about?" ”

"The founder of LTCM, Michael Wither, who was supposed to be the founder of Long-Term Capital Management (LTCM), about four years ago, his company made 25 percent a year's profit, the most profitable of any Wall Street hedge fund in the whole of China, and his team included the former deputy 'chairman' of the Federal Reserve and a group of economists, including the Nobel laureate, who raised $1.25 billion and tripled it in the following two years."

"Later on, you lost money?" Huang Xuan guessed as he listened to the discussion of the three people.

"Yes, there are many reasons, but the biggest reason is that due to high financial leverage, they control $100 billion in assets through various financial derivatives at most - all borrowed from banks, and these contracts are endlessly spread out in almost every bank on Wall Street, and the final amount involved reaches an astronomical amount, about $1 trillion."

"All lost?" Huang Xuan was surprised that 1 trillion is almost the total GDP that has entered the top 10 in the world.

Of course, he didn't lose everything, but it involved 1 trillion, and the final loss was about $10 billion, but he scared Wall Street, because this company involved the interests of almost everyone on Wall Street, and it was worth 1 trillion in total. If it weren't for the alliance of major banks at that time, which is rare on Wall Street, the largest loss might have "forced" the figure of nearly 100 billion. ”

Huang Xuan was still surprised, and Aubrey began to explain to him.

Actually, it's just a very American story, and of course, it really happened, and it's even more bizarre than the story.

John McLiwesser's hedge fund had a promising future and would have been part of a Wall Street legend, and in the final period, people almost thought he was. But under the impact of Russia's debt crisis, the long-term capital fund lost money, and on the most day, it lost $540 million, which shocked the entire Wall Street. In the last days of the crisis, the long-term capital fund had only $1 billion in net value, but it managed $100 billion in assets through financial leverage, and if it lost 1%, the banks would force it to liquidate, and at that point, the crisis might sweep Wall Street. Eventually, the major Wall Street banks, including the Federal Reserve, had to step in with the company.

At the same time, when most Chinese eyes were still on Clinton's zipper, paying attention to Lewinsky's every word, a panic quietly occurred and quietly ended.

To this day, McLiwether wants to test his theories again, or that of the other two partners, so he raises money again from major banks and other wealthy investors, and when he approaches UBS, Dutois thinks Huang Xuan is a man who is willing to take risks and pursue profits.

Regarding the argument between the two sides, Huang Xuan was noncommittal, but asked Kelly: "Doctor, can you explain to me what a hedge fund is first?" ”

"Oh, of course." Kelly was still a little flustered and said, "You see, actually, from the perspective of securities law, there is no such form or institution as a hedge fund. But from a practical point of view, a hedge fund is actually an institutional investor in the form of limited partners, which is very risky, legally speaking, the fund investors cannot be more than 99 people, and each person's investment amount cannot be less than $1 million. If expanded, investors can be increased to 500 people, but each will need at least $5 million. ”

"But what does it do? I mean, what is hedging? ”

Kelly held up his glasses, fixed his mind, and said: "This, the phrase hedge fund is derived from the phrase 'bet on the same person from both winning and losing', and it is mainly to minimize the possible risk of speculation by betting on the opponent. To put it simply, it is to sell an overvalued stock or futures or anything, and then buy the undervalued financial products at the same time. ”

"So how do you make money?"

"For example, if I sell $1 billion of light crude oil for August delivery, and I buy $1 billion of light crude oil for December delivery, then if the price of oil rises, as long as the increase in December is higher than in August, I will make money, or the decline in August is greater than that in December, and I will make the same money, in our words, I only care about the narrowing of the spread, and I don't care about the actual rise and fall. In this way, the risk is reduced accordingly, and at the same time, the financial leverage is used to operate at more than 10 times the capital, and the return is also high. ”

Huang Xuan shrugged his shoulders and asked casually, "Can you make money?" ”

"It's also very good to lose money." "Mr. Huang, if you are interested in investing in hedge funds, I can introduce you to many well-known hedge fund managers, such as Mr. Soros, and McLiwether is not a good choice. ”

"There was nothing inherently wrong with the models of Professors Merton and Scholes, and that failure was an accident." Kelly couldn't help but argue.

Huang Xuan asked, "Who are they?" ”

Kelly thought for a long time and didn't know how to explain, and Dutois "interjected": "It's a Nobel Prize winner, an economic prize." ”

It sounded like a powerful look, but seeing Aubre's red-eared appearance, Huang Xuan smiled and said, "Let's discuss this issue later, I actually need your help when I came to you today." ”

"Of course." Although this service is not written in its terms, it is clear that banks that can help customers get more ways to make money and meet more business people are more popular, in other words, the more powerful the company, the more favored it will be by the wealthy.

Huang Xuan smiled and said, "I want to invest in a medical research institute or biotechnology company, well, I hope they have the ability to have more advanced biologics, what is there to introduce?" ”

"Do you want to take a stake in the drug, or do you want to make your own 'medicine'?"

"I hope to be able to research and produce some 'medicine' products in small batches, well, the quantity is very small, and it doesn't matter if the investment is concerned."

Aubrey shook his head apologetically and said, "You know, the U.S. 'government' is not very supportive of China's ......, well, high-tech industry. He apparently thought Huang Xuan wanted to get involved in the medical industry, as he did in the power industry.

Of course not. Huang Xuanwan, but he still understood the meaning, it was nothing more than an embargo.

Dutois also shook his head and said, "Mr. Huang, investing in a high-tech company is a very sensitive matter......

As he was considering the wording, Huang Xuan waved his hand again and again, saying, "I have no intention of letting this company have anything to do with China." He pondered the words and said, "I'm not interested in owning a company, I just want to get some medical help through some investment." ”

"Your grandfather?" Dutois reacted quickly.

"Yes."

"I'm sorry about that. However, the "government" is always embarrassing. ”

Huang Xuan pursed his lips and said that it didn't matter, and then said: "I have no intention of challenging Washington, but, gentlemen, I just want to invest in a medical 'pharmaceutical' company, and then get priority access to a small number of medical 'pharmaceutical' products, is there anything wrong with this?" ”

Dutois had to frown and said: "I'm sorry, but Mr. Huang, in fact, new 'medicine' products always invest in the market at the fastest speed, and in this regard, it is not very helpful to have a connection with a company." ”

"I don't think you understood what I meant." Although Huang Xuan said this, his mind was busy spinning, and he lied: "I have some formulas, and I hope to be able to produce them with the help of a better laboratory, and it is best to obtain clinical trials." ”

"Actually, we don't have to invest." Kelly said suddenly.

"Tell me about it." Huang Xuan is still very in awe of the title of doctor. Dad worked hard for so long, but in the end, because my mother couldn't go abroad, he has been haunted.

"Actually, simple sponsorship is more acceptable, and if you only need one person's 'medicine', as long as there is enough sponsorship, I think there should be no problem."

Dutois clapped his hands and said, "That's a good idea, we were all a little dazed just now." ”

Can you not faint if you quarrel like that? Huang Xuan smiled indifferently and said, "Which company?" ”

"Maybe we can help you ask a professional how much money you're going to sponsor?"

"It's enough to make them faint." Huang Xuan stood up as he spoke, both of them knew his habits, and today's conversation ended here.