Chapter 595 Alan Thorne Conference

   "Boss, the next speaker is David Einhorn, from Greenlight Capital."

Jiang Shan on the phone looked extremely excited, raised his wrist and looked at his watch, and added regretfully, "The speech schedule at 4:05 happened to miss the market trading time. It seems that the organizer of the conference also knows that this manager energy, deliberately chose this time."

"What an interesting decision!" Zhong Shi, who was still on the plane, was a little amused at Jiang Shan's fuss, but he didn't say much, "Listen carefully to his point of view, and call back after the end. I want to see this gentleman If there is any eye-catching point of view, if it is really like the previous people, then this meeting will be a bit disappointing."

  Jiang Shan flew to New York yesterday, because Zhong Shi still has some things to deal with in Stuttgart, so he can only be asked to attend this Alan Thorne meeting on his behalf. Although the Alan Thorne Charity Conference can be called the annual summit of hedge funds, not all of the top hedge fund managers will attend this conference in person, or even if they attend, they will not take the initiative to speak, but they are all without exception Pay close attention to this meeting, because in each meeting, there will be particularly eye-catching opinions that are finally proved to be correct by the market.

  These views mean profits. In the face of profits, even the biggest hedge fund managers will not be against it, and Zhongshi is no exception.

   Hanging up the phone, Jiang Shan let out a long sigh, feeling a little speechless about himself as the boss. However, he quickly adjusted his mood and quietly waited for David Einhorn's appearance together with the other 3,000 listeners.

  …

The Frederick Rose Center of the Warner Center, on one side of the stage, David Einhorn is standing behind the scenes waiting to appear. The speech of the previous speaker is coming to an end, and soon there is a burst of applause, and the other party Politely bowed slightly to the audience in the audience, and slowly stepped off the stage.

  Because many hedge fund bosses suddenly attended today, like Carl Icahn, Bill Ackman and others. So David Einhorn felt a bit of pressure. But this kind of pressure is nothing, he can still handle it easily. After taking a deep breath, he calmly walked onto the stage from behind the curtain, and there was a wave of applause from the audience.

"I'm here today mainly to promote my book, not just to share my investment experience." Standing in the center of the stage, enjoying the light of the spotlights, David Einhorn raised his "Cheat All the Way to the End" in his hand, first come He started with, "I'm afraid I'm going to disappoint most of you!"

   There was a burst of laughter in the audience, mixed with a few harsh boos. Naturally, everyone knew that this was just a joke.

  From David Einhorn's point of view, he could clearly see the lit BlackBerry screen under the stage. It was some investors recording their speeches at the meeting and sending them to their offices via text messages. This kind of feedback will soon be reflected in the stock market, but it is a little regrettable that because Lehman Brothers arranged his speech after the market closed, so even if David Einhorn said something, at least It can't affect the performance of Raymond Brothers stock today.

Shaking his head slightly, and driving these wild thoughts out of his mind, David Einhorn began to say: "In 2003, our analysts discovered through research that a company called United Capital had Huge problem, so we..."

Immediately afterwards, Einhorn began to talk about his experience of shorting United Capital. This introduction did not last long. After five minutes, he stopped talking, raised the book in his hand again and said: "If you want to know more Don’t bother to buy this book in my hand. I can guarantee that all the details I know are in this book, and there is nothing hidden.”

  After finishing the speech promoting the new book, he quickly entered into today's topic, which is also what the audience is looking forward to.

"Six years ago, my colleagues and I found that United Capital's disclosure of fair value violated accounting rules, and they were unwilling to disclose the impairment of this part of assets to affect the performance of stock prices in the market. Unfortunately, their The mistake was discovered by us." David Einhorn said with some pride, "We discovered the problem and successfully exposed it, helping investors in the market to recognize the true face of this company. We are very proud and proud of that.”

"However, in today's credit crisis, there are still many companies trying to cover up their real losses in asset impairment in this way and mislead investors. We can't bear this." Speaking of this, Egypt As soon as Inhorn changed the subject, he threw out the Leimen Brothers, "Yes, this is what I want to talk about today, and the main character is the Wall Street financial giant, Leimen Brothers."

  As soon as his words fell, the entire venue suddenly burst into an uproar. However, because the participants were all prominent figures, after the initial shock, the venue soon became quiet again, except that more BlackBerry screens were lit up.

   To openly name a certain listed company on such an occasion, regardless of whether you are bullish or bearish, will inevitably involve certain interests. And listening to Einhorn's tone, it must not be looking at Doleman Brothers' stock, which is tantamount to tearing face off with the other party. In this case, it is no wonder that everyone is moved.

   Just when everyone was amazed, David Einhorn's carefully prepared PPT was also displayed on the big screen behind him, showing the financial statements of Raymond Brothers for the first quarter.

"Just last month, I had an open and honest conversation with the CEO of a financial institution, and the inside story of the conversation surprised me." David Einhorn immediately threw another bomb, "Sorry I can't It is beyond the scope of our discussion today to disclose the name of this company. He told me that the bonds held in their financial statements are calculated at cost prices. These are A-rated bonds with low default risk and normal payments. Interest, although there is a lack of liquidity, but generally speaking, there is no big problem in valuation. If this continues, there will be no permanent loss at all when the principal and interest are paid."

"My God, I don't know why he thinks that way, don't they know that these bonds have depreciated by at least two or three percent?" David Einhorn's slightly exaggerated voice sounded immediately, "I immediately refuted his This point of view. Do you know what happened in the end? You may not believe it when you say it. He frankly admitted his mistake. He even told me in the end that if the market price statistics are used, this part of the bond loss The price is something they cannot bear, so in this case they can only choose to hide it from the outside world."

"I have introduced so much, I believe you should have understood that a similar situation is very likely to have happened to the Leimen Brothers!" Einhorn changed the topic again, bringing the topic back to the Leimen Brothers, " We asked this question at the performance report meeting of Lehman Brothers in the first quarter. According to the data released by Lehman Brothers, in the first quarter they held about US$7 billion in CDOs, of which the value of BBB-rated bonds and below reached About US$1.8 billion, and in the first quarter report, they only made an asset impairment of US$200 million on this part of the bond.”

"This is only the first quarter's data. We want to know how they made an accounting assessment of this part of the assets." Speaking of this, David Einhorn showed a look of grief and indignation on his face, "These are still It’s just the data of their subordinated bonds in the first quarter. In the third and fourth quarters of 2007, God knows how many similar bonds they still hold? We sent an email to Erin Cullen of Lehman Brothers for our questions, Hope she can explain our doubts. But can you guess how she responded?"

  At this time, an email PPT was projected on the big screen, which was Eileen Karen's reply.

"Yes, you read that right, that's how she replied to me!" After waiting for tens of seconds, and after everyone had read the email clearly, David Einhorn continued, "They refused to explain What the heck are these questions. Just tell me that Lehman's going to judge these CDO losses in the second quarter based on current prices. But what about the first quarter? What about the previous year's losses? Somebody come and tell me they Why aren't these numbers being tallied?"

   This time, the venue could no longer keep quiet, and some people had already begun to discuss in low voices. The impact of these data was too shocking for them, and it was difficult for them to maintain enough demeanor.

"These are not over yet, and we have discovered even more astonishing numbers." David Einhorn went on to say, before the situation got completely out of control, "We found out that afterward, Raymond Brothers raised the deal to the SEC. There's a difference of $1.1 billion in bond yields between the numbers and what they call earnings calls. Guys, yes, you heard that right, a difference of $1.1 billion. I feel very I don't understand why there is such a big difference in such a short period of time? So I continued to ask the Leimen Brothers my own questions."

"Guys, you may not believe what I say next, but I guarantee that everything I say is true." David Einhorn's face became serious, "Brother Leimen This is what they replied to me. Their valuation of this part of the bond position is based on an internal model as a guideline. God, do you understand what they are saying? The valuation of this part of the bond position is not based on the instant price of the market , but based on their internal models! I just want to ask, do they want to sell or buy corresponding positions in the market at internal prices? If they all use internal models for valuation, then who will Guarantee that they will not increase the value of this bond or reduce the loss before the financial statement is released?"

"They can't give a reasonable explanation!" At the end, Einhorn couldn't help shaking his head, "There is no reason to convince me. I solemnly appeal here, Fed Chairman Bernanke, Treasury Secretary Paul Mr. Sen, I hope you can pay attention to the financial systemic risks caused by Lehman Brothers. This practice of using wrong valuations to cover up book losses is absolutely intolerable. If one day, Lehman Brothers is in trouble like Bear Stearns , the Fed and Treasury should not be bailing out a business like this with taxpayer money because it is a gross injustice."

"To maintain a healthy market, what we need are high-quality companies and industries. Obviously, companies like Rayman Brothers are not among them." Finally, David Einhorn said firmly, "They have been complaining about short sellers for a long time. And if short selling can make such companies realize their mistakes, we at Greenlight Capital don’t mind being such an institution to maintain the market.”

   This time David Einhorn was greeted with thunderous applause, which lasted for a long time. Soon, the applauding people stood up and showed their respect to him.

  …

  Listening to the news from the microphone, Zhong Shi pursed his lips tightly, secretly called out hello in his heart, and then ordered: "Transfer to Seoul, we will not return to Hong Kong for the time being."

   Thanks to Nanquan 99, Wei Mi, It Wasn't Me Last Night, 8112268536, seanju1, Nan Wu Ni Tuo Buddha, Zi Wu and other book friends who voted monthly! Thanks to Nanquan 99 and book friends 140824235809695 for their rewards! Thank you for your support, and I hope that more book lovers will pay attention to and support this book. The author will continue to work hard to write well, and hope this book will achieve better results!

  

  

  (end of this chapter)