Chapter 366: Frequent small profits, small losses, occasional big profits, never big losses (3600)
"Has Jane Jiang's employment been completed? Okay, get her visa as soon as possible."
Robert Capito hung up the phone and returned to his seat, his heart still churning.
How many years has it been since I felt this kind of throbbing in my heart?
Although his years of pampered life have left him in better health than his peers, he will be sixty years old in a few months after all.
Age is not forgiving. He hasn't had any impulse towards women for four or five months.
In fact, even when he was in his twenties, he had never experienced such attentiveness towards a woman.
Every time Robert Capito saw John Doe being attentive to Jiang Nanzhen, he secretly clenched his fists, wishing he could punch this Nth-generation rich man in the face.
Longing, jealousy, even just eye contact would haunt him. Closing his eyes, his mind was filled with every frown and smile of this woman. He unconsciously searched for her figure in the crowd, approached her as if nothing had happened, and then secretly observed her...
For him, these were all unprecedented experiences.
He had no idea what was going on.
Is this what love is?
How could he know that Jiang Nanzhen's divine power was directed at him at that time, and John Duy was just an unlucky guy who was radiated by the overflowing divine power.
After more than two days of diligent study and hard work, and after breaking two Marriott Marquis King Koil mattresses, Jiang Nanzhen finally completely mastered the divine power in her body.
Now she can not only completely concentrate the divine power within her body, but also seduce only specific targets, instead of inflicting uncontrolled force field damage.
Sixty-year-old Roberto Capito sighed, his voice barely audible: "My love is like a fever, a longing for something that will make the disease worse..." (Note 1)
Larry Fink, who was standing nearby, gave Robert Capito a strange look.
When did this bald guy start reading Shakespeare?
"Robert, you may have to speak at two more seminars this afternoon." Larry Fink didn't pay attention to Robert Capito's unusual behavior. This bald man had been with him for more than 30 years, and their trust in each other had long been ingrained in their bones.
"Richard ended his trip early to go to Saudi Arabia. You know, MBS is planning something, and he was supposed to attend two seminars this afternoon. Maybe you and Mark should help share the workload."
Larry Fink leaned over and handed a piece of paper to Robert Capito, whispering.
Above is the schedule for Richard Kusher, BlackRock's head of diversity strategy.
Robert Capito seemed to be fine, but in fact he was distracted as he took the schedule handed to him by Larry Fink. He glanced at it and his eyes couldn't help but focus.
"Then I'll choose the seminar held by the fund company in Da Zhou. I'm a little interested in them." Robert Capito circled the paper with a pen, but his eyes couldn't help but linger on the names of the participants from the 404 team.
Jane Jiang.
Robert Capito's heart started pounding when he saw the name.
Larry Fink nodded, unconcerned. "Robert, your intuition is quite sharp. This small company is indeed quite interesting. The cumulative return rate over the past 100 trading days is close to 500%. I suspect they have developed some kind of new algorithm."
"Mark is in charge of alternative investments. I originally wanted to put him in touch with this company. Since you are interested, then go ahead."
The Mark that Larry Fink mentioned is Mark McCollum, Global Head of BlackRock's Institutional Client Business and Co-Head of BlackRock's Alternative Investors.
He is also a member of BlackRock's Global Executive Committee.
At BlackRock, the board of directors symbolizes a certain industry status, while the executive committee is the real controller of this behemoth.
Hearing Larry Fink's words, Robert Capito licked his lips slightly nervously.
"Okay, okay."
——
When Robert Capito entered the Schubert Conference Room, Si Lingsi's presentation had already ended and the question-and-answer session was underway.
Robert Capito's eyes were immediately attracted to Jiang Nanzhen who was sitting on the stage.
The Schubert Conference Room on the sixth floor was arranged in the form of a symposium, with 404 people sitting in the front, facing more than 100 institutional investors and representatives of various types of hedge funds or financial companies.
"...while the average annualized return on private equity funds in the industry is around 10% to 15%, and their net win rate is generally between 50% and 55%. In comparison, the Woking system..."
Huang Xiang seemed a little nervous and stammered as he answered questions raised by his colleagues who were attending the seminar.
Their keynote speeches had already been delivered. Huang Xiang's English was the best, and he read the speech that had been prepared long ago word for word.
In the capital market, success or failure is the only criterion for judging a person's success. Talented young people are everywhere, but no one at the scene challenged the three men's age.
However, it is very doubtful whether the three people from the Great Zhou Dynasty can prove the reliability and stability of the Woking system they mentioned with only a hundred trading days' trading results.
Moreover, the understanding of the Malaysian market and the long-term stability of the strategies of these three Zhou brothers are also worthy of being classified as high-risk attributes.
As I've said before, when capital reaches a certain level, what people most enjoy is not necessarily growth, but what they most dislike is depreciation and the risk of loss. Therefore, even though 404's yield rate surpassed all other private equity firms, it still failed to win over the institutional investors present.
After all, private equity firms with assets under management below 100 million dollars do not need to fill out Form 13F to disclose their holdings to the SEC (Macau Securities and Exchange Commission).
In a sense, 404 is just a small black box company to Wall Street.
This kind of small company may bring extremely high returns, but it also brings great risks. Faced with this kind of fund, most institutions will choose to wait and see.
Moreover, these people are basically bigwigs in the industry, and the questions they raise are very sharp and challenging.
"Sorry, that's not the question I asked just now. I know your performance over the past 100 trading days has been very impressive, with a return rate of 482%."
"But my question is, what specific strategies does your Woking system use? Are there any additional conditions for the 75% overall strategy success rate? How does the system deal with occasional 'black swan events'? Do you have a plan to prevent large losses?"
"Basically, you didn't accurately answer any of the questions I just asked. This makes me suspect that your so-called Woking system is just a gimmick and can't meet our needs in the field of risk management."
The person asking the question was a white man in his forties, wearing a light blue shirt, who looked like a union representative.
In fact, Huang Xiang’s professional ability is not bad. The return rate of the Woking system he monitors is medium among the three, but he has almost never lost money.
Moreover, among the few people, he is the most familiar with the Woking system and uses the various tools in it the most. Especially in tuning model parameters and mastering backtesting and optimization, his skills are far better than Lu Xuechang and Luo Ziming.
But due to his personality, Huang Xiang is indeed more easily nervous, and sweat breaks out on his head when he is nervous.
Luo Ziming took a look, took the microphone from Huang Xiang, and said in typical Da Zhou Anwen: "Excuse me, where are you from? What's your name?"
The white man said bluntly, "I'm James Whittaker, Director of Investment Operations at Harbor Point Retirement Fund. I booked a meeting with you because I saw in your promotional materials that your Fund No. 4 focuses on high returns while maintaining security."
"Based on your current behavior, I can only think that you are liars. If you think this place is like the Great Zhou where you can be deceived by you, I suggest you stop wasting your time."
Harbor Point Public Retirement Fund is a private retirement fund in San Francisco with over $39 billion in assets under management. Its investment strategy focuses on risk-adjusted returns, primarily investing in fixed income, high-quality equities, and selected hedge funds and alternative investments.
Private pension institutions hold 40% of the nation's mutual fund market, equivalent to 30% of household financial assets, making them the largest financiers in the financial market.
What these pension institutions fear most is risk, so they are more inclined to resist risky products.
The reason why James Whitaker chose the 404 symposium this time is because the No. 4 Fund that 404 is promoting focuses on high returns with security.
This time, 404 opened subscription for three funds, namely 200 million Malaysian dollars, 300 million Malaysian dollars and 500 million Malaysian dollars.
Among them, the 500 million yuan Fund No. 4 claims to be able to reduce risk to the level of investment-grade corporate bonds while maintaining the private equity industry's average annual return of 12%.
This kind of publicity is too tempting for private pension institutions.
But after listening for more than half an hour, he hardly heard anything useful, and couldn't help but wonder if these three guys were liars.
Luo Ziming was also a little nervous, but he was a natural performer, and the more nervous he was, the more excited he became.
"Mr. Whitaker, the 75% strategy success rate is the actual performance of our closed Fund No. 1. However, I do not deny that the investment strategy adopted by Fund No. 1 was relatively aggressive."
"We are not a high-frequency quantitative company, but through the roadshow just now, you should have seen that our portfolio adjustment cycle is mostly short- to medium-term. Although T0 transactions are rare, adjustments are usually made on the T+1 day or multi-day cycle."
"In other words, we actually used a short-term arbitrage strategy in Fund 1, which is why we were able to achieve such a high rate of return."
"However, in Fund No. 4, since its size has exceeded 100 million yuan, in order to comply with the regulatory requirements for large-scale fund liquidity, the frequency of portfolio adjustments will be appropriately slowed to reduce market impact costs."
"Therefore, we will use our own value investment strategy for Fund 4. According to our prior analysis, under the Woking system's value investment strategy, the risk is significantly lower than similar products on the market."
"It can basically ensure an annualized return of more than 15% while reducing the risk to the level of investment-grade corporate bonds, that is, double-A bonds."
Whitaker's eyes flashed, and he interrupted Luo Ziming: "You just said that your funds 2-4 chose a value investment strategy because their scale exceeded 100 million dollars, in order to reduce disclosure requirements and regulatory pressure. You didn't mention the risk issue. Does your fund 1 also have the risk level of a double-A corporate bond?"
Luo Ziming shook his head exaggeratedly: "Of course not, buddy, the higher the return, the higher the risk. Fund No. 1, which adopts a short-term arbitrage strategy, is of course more risky than Fund No. 4, which uses a value investment strategy."
Whitaker nodded involuntarily. That was more like it. If he had said that Fund No. 1 had the same risk level as a Double-A bond, he would have probably called the police.
Just as I was about to continue asking questions, I heard Luo Ziming think for a moment and continue, "If we talk about the specific risk level of Fund No. 1, it's probably slightly higher than that of an index fund."
Whitaker almost spit out a mouthful of blood, and the more than a hundred people at the scene were in an uproar.
Liar! Absolutely a liar!
Are private equity funds that engage in short-term arbitrage slightly riskier than index funds?
He is either a liar or a lunatic, and more likely a fool!
Robert Capito, who had been secretly staring at Jiang Nanzhen, couldn't help but shake his head at this moment.
This company was definitely lucky to have such a high return.
Luo Ziming felt uneasy when he saw the reaction from the audience. He regretted that he was used to talking nonsense. Who would believe what he said?
Just as I was about to go back and add a few words, I suddenly felt my mind clear up.
"I'm not exaggerating. In fact, this is still a relatively conservative estimate. The tenet of the Woking system is: frequent small profits, small losses, occasional large profits, and never large losses."
"Words are not enough, I can demonstrate it to you."
After saying that, Luo Ziming stood up, picked up Huang Xiang's laptop connected to the projector, and logged into the Woking system.
"This is the historical change in holdings of our Fund No. 1."
I updated it first, it’s too late.
Modification notice: After checking the annual report, BlackRock's entrusted funds at the time were 5 trillion, not 7 trillion, and have been revised.
Memory is indeed an unreliable thing.
Note 1: From Shakespeare's Sonnet 147.
original:
My love is like a fever, always expecting,
Care for this disease can be prolonged;
Take food that can maintain the condition,
morbid perversions of gratification of appetite;
Reason, the doctor of my love,
He was angry that I did not follow his medical advice;
Walking away, I proved in despair,
Desire is death, and there is no way to save it;
My mind has left me, and I can no longer heal it.
Only to fall into endless anxiety and frenzy;
Both thought and speech are like a madman,
In vain, he made things up;
Because I swore you were perfect and pure,
In reality, it is as black as hell and as dark as the twilight night.
(End of this chapter)
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