Chapter 219 Stanford University Fund

  Xia Jingxing nodded. He understood the responsibilities of the other party. It is impossible for him to pay for his share of the fund because of the greeting from Old Man John.

Before    came, Xia Jingxing also did his homework, and slowly said, "As far as I know, the average return rate of the school fund from 2001 to 2003 was 15.3%?"

  Wallace nodded and smiled, “Yes, this rate of return is enough to rank in the top three of the 20 largest and most well-known universities in the United States.”

  Xia Jingxing asked: “Should the school also invest in some hedge funds?”

  Wallace didn’t think it was necessary to conceal the need, and responded readily: “Of course there is, not just hedge funds, we also invested in venture capital funds, real estate funds, asset securitization funds...

  Investment is very diversified and sufficiently dispersed. "

   "Mr. Wallace, if I tell you that I have earned 500 times the return from securities investment in the past year and a half, can I persuade the school foundation to invest in my hedge fund?"

  Xia Jingxing did not hide it. If he wanted to persuade the other party, he could only come up with an extraordinary investment record.

  Wallace thought he had heard it wrong, and said in amazement: "Dalun, you are not kidding me, are you?"

   "Is it true or not, you can see it by looking at it."

  Xia Jingxing asked Liu Hai, who was sitting next to him, to take out his laptop from his handbag and open the website where he had logged in to First Securities.

  Looking at personal accounts, investment records and other information, Wallace finally chose to believe it.

  He also specially called up the stock price chart of two stocks, analyzed and pondered for a while, and every purchase and sale were at the right time.

   is that NetEase’s time to sell was a little earlier. He asked: “Why did NetEase’s stocks be liquidated in July last year? In October, the stock price exceeded $70, which is a double profit.”

  Xia Jingxing said, “With limited funds, I can only maximize my income. By October, the share price of Amicco had risen several times.”

  Xia Jingxing explained to the other party the embarrassing situation of lack of funds in his hand at that time.

  Wallace asked: "That is to say, of the $7 million initial principal that you invested in Amico, out of which $5 million is a loan?"

  Xia Jingxing nodded.

  Wallace smiled, "In the strict sense, you only made 4 times the income on the Amicco stock and 60 times the income on NetEase, which is still pre-tax.

  Multiplying the two, it is only 240 times the income, which is not 500 times. "

  Xia Jingxing did not refute, because the other party was right. The investment in Amike was because he pledged Facebook shares to borrow 5 million US dollars from Liu Jinhang, which had to be included in the principal invested.

  At that time, he could also choose to increase leverage, but that would be much more dangerous.

   "If I had a hedge fund in my hand at that time, the return on this investment in Amicco would never be less than 10 times."

  Xia Jingxing looked at Wallace and said lightly: “Two or three times the leverage is normal for hedge funds.”

  Wallace is very professional. He commented: “Dylan, I find that you have a very sensitive sense of investment in difficult securities. Does your hedge fund plan to develop in this strategic direction?”

  "This is only one aspect, there are good investment opportunities, never let it go."

Xia Jingxing continued, "On the other hand, we also plan to invest in emerging markets."

   "For example?" Wallace asked.

   "Like China!"

  Xia Jingxing smiled and said, “The shares of Coca-Cola and Wal-Mart in the United States are about to be analyzed badly.

  But in the Chinese market, few investors pay attention.

  Now China’s economy is developing rapidly, and a number of "potential companies" with strong growth will inevitably emerge from all walks of life. "

  "Are you talking about the QFII system introduced by the Chinese securities market last year? That is very troublesome.

  To review the scale and operation of the fund, your newly established fund is obviously not eligible.

  The entry of US dollars is very troublesome, and it has to be converted into Chinese currency, and there is also an upper limit on the shareholding ratio of listed companies. Profitable withdrawal is even more troublesome, and it is remitted in batches. "

  Wallace obviously has research on China's securities market, and he talked about the key points as soon as he opened his mouth.

   "That is China's A-share market, and we will not enter it for the time being."

  Xia Jingxing shook his head, and then said, “In addition to A-shares, there are also some high-quality Chinese listed companies in the US and Hong Kong stocks.”

  Wallace nodded, pondered for a moment, and then asked again: "Dylan, how do your hedge funds charge? How long is there a lock-up period?"

  The show is coming, and Xia Jingxing sits up straight and says sternly: “The annual management fee is 2%, and the guaranteed annual return is 10%, which is lower than this annual rate of return and no dividend fee will be charged;

  The average annual return is higher than 10%, and 20% of the fund’s profit is collected as dividends.

  The closed period of the fund is three years, and no redemption is allowed..."

  Xia Jingxing talked about the fund management terms to be established one by one.

  Compared with other hedge funds, the hedge funds they intend to set up do not have particularly big advantages in terms of closed periods, management fees, and dividends.

  The only advantage is that the annual average rate of return is less than 10%, and no dividends are collected.

  Other hedge funds either do not set a guaranteed return rate, or set a 4% or 6%.

  There are also 10% or higher, but like them, they are all new funds, small funds, and good terms to attract customers.

  In fact, even so, there may not necessarily be clients willing to invest in small funds.

  Because the principal is not guaranteed, the rate of return has a shit.

  Have a lot of trouble, you can't make money, or even lose money, you are free, and no one invests in you.

  On the contrary, the fees of large funds are high, but the ability to make money lies there.

  Many small funds use generous terms to fool customers into investing, and then take the money to fight.

  Success, everyone is happy, small funds become big funds.

  Failed, the fund is liquidated, and investors cannot ask for compensation. They must accept the reality of failure, and the fund manager changes his vest to continue his business, or returns to work in a large fund.

After listening to Xia Jingxing’s introduction, Wallace thought for a while and said: “The conditions are good, but the management of hedge funds is not an easy task. Also, Dai Lun, what about Facebook?”

  Xia Jingxing patted his bangs on the shoulder, “William is my fund partner. He holds an RIA certificate and will be the manager of the hedge fund.

  I will also devote part of my energy to participate in this investment business and provide some investment analysis and decision-making. "

  Wallace frowned, "Will it matter? After all, Facebook seems to be more important to you?

  In fact, I don’t understand, Darren, why would you think of doing finance, or end up in person. "

   Xia Jingxing explained, “If our strategy is not that complicated, I think we can handle it.

  Netease and Aimeike two investments, I also completed the process of running Facebook. "

   "Okay, I understand, I need to report to the school's board of directors, and they will make the decision."

  Wallace looked at Xia Jingxing, smiled and said, "However, I will try my best to recommend you."

   "Thank you so much, Mr. Wallace!"

  Xia Jingxing stood up, smiled and shook hands with each other, "Time will prove your choice is right."

   "I hope so!"

  Wallace added a few more words, “Since your fund is only newly established, even if the directors agree, they should not spend too much money to invest in you.

  If after three years, you give them an answer sheet that makes them very satisfied, I believe that they will make a choice that trusts you more. "

  Xia Jingxing nodded, it would be nice to be able to invest, and he didn't expect too much.

  (End of this chapter)