Chapter 1252 Eighty Billion Dollars

   Countless individual and institutional investors flocked to 40 Wall Street like a pilgrimage.

   While they were actively subscribing for the new fund, they all proposed to meet Xia Jingxing.

   But they were unlucky, Xia Jingxing was no longer in the company at this time, so naturally he could not receive them.

  In the large flat-story mansion in New York's Central Park, the sun is flooding the study.

  Xia Jingxing hung up Lou Wei's phone, then picked up the pen on the table and made a heavy stroke on the paper document.

   China Investment Group invested 1.5 billion US dollars, and took out a total of 4.88 billion US dollars with principal and profit, and the net investment return was 3.38 billion US dollars.

   This rate of return is not too high, compared with the return on investment obtained by waterfall investment, it is a bit too low.

   This is also something that can't be helped. Who asked Gates to get on the bus first?

  Envision Capital officially started the first round of fundraising for investing in subprime mortgage derivatives in 2006. At that time, a total of 1.5 billion US dollars of external funds were raised.

   Among them, Guang Waterfall Investment invested 500 million US dollars, accounting for one-third of the fund share.

  After the end of shorting subprime derivatives in 2007, that is, the first phase of shorting, the scale of this $1.5 billion external fund has ballooned to nearly $11.1 billion, with a profit of nearly $9.6 billion.

   Since then, the 11.1 billion US dollars has participated in the second wave of financial short-selling operations, and the scale has further expanded to 46.1 billion US dollars.

   After deducting more than $1 billion in management fees and $1.5 billion in principal, the fund’s net return reached $43.6 billion.

  According to the signed fund income sharing agreement, 35% of the income goes to GP Vision Capital, and the other 65% goes to LP.

Therefore, LP has a total of 28.34 billion US dollars, one-third of which is attributed to waterfall investment, and the approximate figure is about 9.45 billion US dollars, plus 500 million US dollars of principal, so Gates received a total of about 100 Billion dollars, so happy!

  Compared to Waterfall Investment, CIC Group missed the first stage of short-selling of subprime mortgage derivatives due to its late investment time, and its income was greatly reduced.

However, after completing the fund raising work, Envision Capital did not let these funds idle. After half a year of operation, when entering the second round of financial shorting, the scale of the US$1.5 billion special investment fund of CIC has expanded to 1.65 billion. Dollar.

   After the end of all investment activities last month, the size of CIC's special investment fund has grown to US$6.85 billion.

   After deducting about $150 million in management fees and $1.5 billion in principal, the net return figure is $5.2 billion.

   Then according to the 65% split, the CIC will get $3.38 billion.

   In addition, it is worth mentioning that the special investment fund established by Vision Capital for the dog has achieved a very good rate of return.

  Xia Jingxing lowered his head and glanced at the document in his hand, which clearly stated:

  Puppy Family Office, invested 100 million US dollars, received a total of 1.173 billion US dollars with principal and interest, and the net investment income was 1.073 billion US dollars.

The little dog has good luck. With Xia Jingxing's reminder, before the initial loan bubble was completely punctured in 2007, he cleared and sold all CDO assets and a small part of the real estate, and collected about 100 million US dollars and handed it over to Vision Capital Management. , barely caught up with the good opportunity to short subprime derivatives at halftime.

   After the subprime short-selling operation ended, the 100 million US dollars had become 430 million US dollars. When the second phase of the global short-selling operation ended, the size of the dog special investment fund further expanded to 1.787 billion US dollars.

   After deducting management fees and principal, the net return of the fund is about 1.65 billion US dollars, and the dog can get 65% of the income, or 1.073 billion US dollars.

  Xia Jingxing took another look at the returns of several funds raised before the second wave of financial shorting.

   is a bit low, it is the bottom of all funds in the statement.

At that time, Vision Capital raised a total of 5 billion US dollars from various blue-blooded nobles, plus 430 million US dollars from the Puppy Special Investment Fund, 1.65 billion US dollars from the China Investment Group Special Investment Fund, and 11.1 billion from Baohan Waterfall Investment. U.S. dollar fund...

   and Xia Jingxing’s personal capital of 13.6 billion US dollars, a total of about 32 billion US dollars.

   These 32 billion US dollars are all the funds to participate in the second wave of financial shorting.

Among them, Xia Jingxing's own funds are 13.6 billion US dollars, and 10.6 billion US dollars are from the investment profits of Clary Capital, which is the fund managed by Peter Thiel. After shorting sub-prime derivatives, the scale of funds has been Inflated from $1.5 billion in principal to $10.6 billion.

Afterwards, Xia Jingxing felt unsafe, and pledged various equity assets to borrow US$5 billion from Goldman Sachs and Morgan Stanley.

  The $5 billion, after allocating $1 billion to Greenlight Capital and $1 billion to Renaissance Industries, only left $3 billion.

   Plus the $10.6 billion in funds, a total of $13.6 billion in self-owned funds, accounting for 42.5% of the total short-selling funds of $32 billion.

   The main capital of the second wave of financial short selling has always been only 20 billion US dollars. After the TRS leverage tools of the two major investment banks enlarged the capital, it became 60 billion US dollars.

  The 60 billion US dollars, Xia Jingxing allocated 20 billion US dollars each to Liu Hai, Jiang Ping and Li Yaozu, who shorted individual U.S. stocks and options, U.S. stock indexes and derivatives, European stocks and related derivatives, and shorted the public respectively.

   In addition, there are 12 billion US dollars of funds that have been used as reserve accounts, and support the three major trading teams from time to time.

  When the financial tsunami broke out, Envision Capital transferred US$10 billion from the reserve account to short the Li Huangtai family, and made a small gain of US$5 billion.

   Therefore, the 108.2 billion profit figure calculated by Abel in the Caribbean Sea that day is not accurate. It only reflects the entire investment profit of Vision Capital last year, but it is not the corresponding profit of the 32 billion US dollars.

   The liquidated fund only includes the $32 billion and its earnings.

The income part needs to deduct the US$3 billion profit from shorting SOHO and the three major real estate families in the Hong Kong Island market, deduct the US$3.7 billion profit from the Jiangping team's investment in foreign exchange markets, and deduct the US$500 million profit from the fund of funds managed by Abel. The remaining figure is $101 billion.

   The principal of    is 32 billion US dollars, and the net profit is 101 billion US dollars. This is the main result of the short-selling operation in the second stage.

   The blue blood nobles invested 5 billion US dollars in principal, corresponding to a profit of 15.781 billion US dollars (50÷320×1010), and 15.5 billion US dollars remained after deducting management fees.

   In addition, when Blue Blood Nobles invested, Envision Capital just increased its income sharing rate once, from the previous 35% to 40%, so LP can only receive 60% of the income, which is a net return of 9.3 billion US dollars.

   Invested 5 billion US dollars and made a net profit of 9.3 billion US dollars in more than one year.

  The major blue blood families are already satisfied with this ROI.

   In fact, they don’t know that the funds they invest in are the ones with the lowest returns among the funds managed by Vision Capital.

   The net return on investment of less than 200% is lower than the 225% of the CIC Special Investment Fund, 1073% of the Small Dog Special Investment Fund, and far lower than the 1890% of the Waterfall Investment.

   This net return on investment is actually proportional to the morning and evening time of getting on the bus.

  The earlier you get on the bus, the higher the net return on investment.

   And the blue blood nobles have caught up with the rate increase of Vision Capital, which is also a major reason for the decline in the net return on investment.

  Xia Jingxing gently put the documents aside and started to calculate his investment results.

   His income is mainly divided into two parts, the income share of his own funds and the external LP management fee and income share collected by Envision Capital.

   In terms of income sharing from his own funds, the principal and related income of US$1.5 billion he invested more than two years ago first expanded to US$10.6 billion, and then the loan increased by US$3 billion in principal.

   As of the end of all investment activities, this $13.6 billion has become $56.525 billion.

   Excluding the $4.5 billion principal, the total profit was $52 billion.

  This figure does not deduct the fund management fee and GP income share, because Vision Capital is his wholly-owned company, so it doesn’t matter whether it is divided.

   As for external LPs, Envision Capital created a total of $58.075 billion in revenue for LPs in the second-stage short-selling operation, and nearly $10 billion in revenue for LPs in the first-stage short-selling operation.

   The two revenue shares and related management fees are all added up, and Vision Capital can collect US$26 billion.

   In other words, 58 billion plus 10 billion minus 26 billion is equal to 42 billion US dollars, which is the net income that many external LPs such as Gates, China Investment Corporation, Dog Dog, Blue Blood Noble can get.

   The US$52 billion plus US$26 billion are most of the results of Xia Jingxing's nearly three years of hard work.

The reason why it is said to be most of the results is that it does not include the income obtained from investing in Paulson Fund and Greenlight Capital in private names, nor does it include the 13.7 billion Hong Kong dollars obtained from selling Penguin shares to short SOHO and the three major companies. $3 billion in net gain to the estate family.

   In addition, the Fund of Funds managed by Abel and the two foreign exchange funds managed by Jiang Ping also have their own profits, but because the funds are not liquidated at this time, they just charge management fees as usual every year, so no statistics are made for the time being.

   In short, no matter how you calculate it, Xia Jingxing has obtained enough benefits in this financial operation that lasted for three years.

   Excluding the principal, the net investment income of self-owned funds and the share of income from Vision Capital and management fees have steadily exceeded 80 billion US dollars.

   My head is too big. I looked through a lot of data in front of me, and it took three or four hours to figure it out. I hope you don’t think it’s too long-winded.

  

  

   (end of this chapter)