Chapter 1229 Sovereign Fund

As much hope, so much disappointment.

After meeting, Chen Ran collapsed.

That's it?

NetEase, Ali, Netflix, Salesforce, AMD, Nvidia, ASML, Adobe, Amazon, Visa, the top ten gold stocks? Why is it so ridiculous?

She thought that Boss Zhou could come up with some brilliant and shocking investment strategies.

I didn't expect... Well, it's really shocking.

10 billion US dollars of big money, just invest in these? Not to mention that this is a top private equity with extremely high fees, even the most common public equity... can't pick out such a messy stock portfolio.

The Internet, software, semiconductors...the more they look, the more they look like stock picking for retail investors.

Just like this, you still promise to guarantee a 20% annualized return? If you lose money, you have to pay out of your own pocket to compensate for the loss? Boss Zhou, are you playing too big?

Because the big boss said that he will mainly look for value investment targets in the technology field, so Chen Ran has been researching technology stocks during this period of time, and he really can't see what kind of internal relationship exists in his stock selection.

The cost of private equity is extremely high, and the requirements for capital preservation are very high, so there are often stock selection strategies with relatively deep logic, and there will be internal strategic "hedging".

For example, if the price of coal rises, the income of coal companies will increase, and the stock price will rise. What followed was an increase in the cost of electricity, which led to a decrease in the profit of the power company and a decline in stock prices.

There is a simple hedging relationship here, and the stock prices of coal companies and electric power companies will rely on each other, and one will ebb and flow.

If everyone buys coal stocks, it will be miserable if the coal price falls sharply, and the risk is too great; if they all buy electric power stocks, it will be miserable and the risk is too great. Buying the two together can form a hedge and reduce risk. Through some operations, the effect that private equity funds can make money no matter whether the price of coal rises or falls.

Right now, Boss Zhou's stock selection really doesn't show any cleverness, there is no hedging, and there is no ability to withstand pressure.

"Is this... really okay?"

Chen Ran didn't want to question it, but he really couldn't help it.

Standing in front of the floor-to-ceiling windows of the office, Zhou Buqi overlooked Manhattan, and couldn't help but sigh, "It really is the Rockefeller Building, and the view is really good. Huh? What did you say? What can I do?"

Chen Ran took a deep breath, "Mr. Zhou, your stock selection strategy..."

Zhou Buqi was full of confidence, and waved his hand without looking back, "There is no need to question, just execute it."

Chen Ran was silent for a long time. Although he didn't understand, he could only accept, "These 10 stocks don't seem to be big enough. Amazon and Visa have a market value of more than 20 billion. Do they have to exceed 5%?"

Zhou Buqi said: "Don't overdo it, don't deal with the outside world. My investment strategy is the idea of ​​a genius in the sky. It must be kept secret, kept secret, and kept secret! It must not be leaked!"

Private placement is a black-box operation, but once you hold more than 5% of a company, you have to deal with the public and the exchange, and there will be outside intervention.

This kind of thing should be avoided as much as possible.

It's not that there is a lack of investment targets, so many stocks can be bought.

The Black Rock Group in later generations has managed assets of 10 trillion U.S. dollars. From the public accounts, it can be found that its stock funds have bought all the stocks in the S\u0026P 500, and the shareholding amount of each stock is 100 billion. is 4.99% of the company.

Even public offerings don’t want to cross the line, and private placements even more have to be avoided.

Chen Ran was a little numb, and said bravely: "Then what should we do? These 10 stocks can't afford 10 billion US dollars."

Zhou Buqi said: "These 10 stocks were bought for 5 billion U.S. dollars. The remaining 5 billion U.S. dollars were bought into Apple's stock."

"Ah?" Chen Ran was stunned, "5 billion US dollars, all of which go into apples?"

"right."

"Buy a single stock?"

"right."

"this……"

Chen Ran wanted to refute again. Although she is not an investment expert, she has been engaged in financial management for many years, and one of her tasks is to help employers buy or sell stocks. What she does is the work of operation, not the work of decision-making.

But even so, I have a deep understanding of stock investment.

Didn't do that!

The most important thing for a fund is to diversify its investment, and you cannot put all your eggs in one basket. The first task is not to lose money, and the second is to maintain profitability.

The US$10 billion Pluto Capital directly used half of the funds to buy Apple. Isn’t this giving Apple its own life? Apple's stock price has fallen, isn't Pluto Capital at risk of losing money?

Well……

A new idea suddenly popped up in Chen Ran's mind.

yes!

Boss Zhou is a bigwig in the technology industry, and there are only a handful of people in the world who understand the technology situation better than him. He bought Apple with such a large amount of money, which is extremely optimistic about the development momentum of the iPhone in the next few years. Will it only rise or not fall?

Is the prospect of the iPhone very good, but Android is bad?

"Can't Google?" Chen Ran couldn't help but asked, "If you buy so many apples, the barometer of Pluto Capital will follow Apple. The risk is a bit high."

Zhou Buqi pondered for a while, "Well, Google is also okay. Then spend 2 billion US dollars to buy Google, and spread it out."

In the short term, Google is much stronger than Microsoft. In response to the economic crisis, Microsoft has adopted a tough strategy; Google is taking the road of innovation, from Google browser, Android system, to YouTube, which has become better and better with a transcontinental database... In the next year or two, the trend of Google's stock will be very strong.

Chen Ran blinked, "Where is Microsoft?"

"Microsoft can't."

"Why?"

"Ballmer's style is too rude. He needs to be strong internally, and he wants to be a spring rain externally. If it is reversed, there will be problems. Especially in this wave of smart phone trends, Microsoft is obviously late, the trend is pessimistic, and the stock price has to fall. One or two years. Either wait for one or two years before buying the bottom, or wait for Ballmer to step down before buying and chasing the rise. In short, it is not now.”

Chen Ran breathed a sigh of relief, and felt a little relieved to hear him speak clearly and logically.

From the looks of it, Boss Zhou didn't make the decision with a hot head and a slap on the thigh, he also thought it through carefully.

"still have a question."

"Um?"

"My friend... is the one who helped the Middle East sovereign fund to find a relationship. He found me. He said that the prince wanted to see you and talk about cooperation."

Zhou Buqi said with a smile: "It's a coincidence that some rich people in the Middle East have found Goldman Sachs and want to cooperate with me. What kind of fund are you?"

Chen Ran said: "Abu Dhabi Sovereign Fund."

Zhou Buqi turned back and sat down on the sofa, touched his chin and said, "It's not the same, it's Saudi Arabia's National Sovereignty Fund that approached Goldman Sachs."

They are all about the same, they are all super local tyrants from the Middle East.

Saudi Arabia's sovereign wealth fund is the largest in the world, with $1.3 trillion in assets under management. The Abu Dhabi fund is part of the sovereign wealth fund of the United Arab Emirates, with about $600 billion.

In short, they are all super rich and rich.

This wave of financial tsunami has really put the local tyrants in the Middle East into a rut. The oil tycoons are all looking for investors who are not from Wall Street... Sun Zhengyi took advantage of it and got 60 billion US dollars. With Madoff's accident, Zhou Buqi seems to have the meaning of replacing him.

Madoff used to take the route of politicians, celebrities, and social elites, and Pluto Capital, which is not used by Zhou Buqi, also followed the same route. Unless you are a life-threatening scammer, you can be trusted. The top and smartest people in the United States have given their money to Zhou Buqi, so what else should others worry about?

Chen Ran asked: "Will you continue to raise funds?"

Zhou Buqi said: "Of course, if someone sends money, don't just refuse it! I still want to buy Manchester United. I don't have enough cash in hand, and Manchester United's debt crisis is also very serious. I just wait for the local tycoons in the Middle East to give me some funding. Hurry up The second fund of Pluto Capital was established."

"no."

"Um?"

"I'm saying that such a structural design is inappropriate. You have chosen too few investment targets, and your plate is too small."

"What do you mean?" Zhou Buqi frowned.

Chen Randao: "For example, in Amazon, the first fund holds 3% of the shares, and the second fund holds 3% of the shares. But these are all funds under Pluto Capital, and the total is 6%. It just crosses the line."

"Then what should we do? Separate?"

"Only so, unless you can give more stock options."

"Then separate!"

Zhou Buqi waved his hand.

more choices?

where?

These 10 gold stocks were finally selected, plus Apple, Google, and Microsoft, the three giants that can devour a large amount of funds. There are more choices, but the future rate of return will not be so much.

Zhou Buqi said: "Then register a new private equity fund, um, it's called Neptune Capital. It specializes in serving the Middle East...friends in the Middle East."

Chen Ran had a headache. Working with this young boss was an eye-opener. He still had enough money to register two private equity funds. "However, there is one thing I want to remind you."

"What?"

"Saudi Sovereign Fund and Abu Dhabi Sovereign Fund, you can only choose one."

"Why?"

"International situation, there are conflicts between the two. Both Saudi Arabia and the UAE want to be the leader of the Arab world, and the competition is becoming more and more fierce. Saudi Arabia is richer, but it is too conservative and is fundamentalist; the UAE's economic strength is slightly weaker, but it is more It is close to modern civilization and can be widely recognized, and Dubai is the symbol.”

Zhou Buqi took it lightly, "It doesn't matter to me what they like. Let Goldman Sachs recommend it. Well, whoever gives more money and who has good conditions can cooperate with whoever! It is best to register a Neptune Capital, a Uranus Capital. One serves the local rich in Saudi Arabia, and the other serves the local rich in the UAE, the best of both worlds.”

Chen Ran twitched his lips, "It's unlikely. Both of these two families want to be the boss, and the conflicts are getting more and more intensified. It's probably impossible for them to get along with each other. We can only stand in line."

"What else?" Zhou Buqi remembered that there was another wealthy country in the Middle East, "Where's Qatar?"

Chen Randao: "Saudi Arabia's national sovereign wealth fund is very rich, but the money is not distributed to the people, and the per capita income is very low; Qatar's per capita income is the highest in the world, so the country has no money. The Qatar Investment Authority was established in 2005 and was managed last year. The capital is only 60 billion US dollars, and the data for this year has not been disclosed, so it should shrink.”