Chapter 948 Never been so generous

Author: Khurav

Chapter 948 Never been so generous

"But, I do have a new suggestion and idea, which may be able to help you a little bit in terms of book performance!"

"I know you probably don't have any good intentions when you come here this time. Tell me what you want to do!"

"Lend me the stocks held by the Magellan Fund!"

Sitting in his seat, Carter smiled and patted his palm on Peter Lynch's thigh.

This erotic scene instantly gave Peter Lynch goosebumps!

"All?! Are you crazy?!"

Okay, maybe the source of these goosebumps is not Carter's palms.

Peter Lynch jumped off his desk with a shocked look on his face. He guessed that Carter might have the idea of ​​short selling, but he never expected that Carter would play such a big game!

"Do you know how much deposit this requires?!"

"Six to eight hundred million!"

He also stood up and slapped his palm on Peter Lynch's shoulder:

"I've prepared the money! How about it? Consider lending me the stock, which can at least guarantee a stable income. The interest rate is up to you!"

"I know that ROG has brought you a lot of cash flow now, but are you really sure you want to play so big?! I don't need to say more about the risks involved?! This is not the first time you have come into contact with this! I

Think this is a bit too risky, man!"

"I know, of course I know. Before coming to Boston, I met Julian. Similarly, I almost borrowed about one-third of Tiger's stocks. After all, Tiger plays long and short (

long-short strategy), Julian now has a lot of short positions, I can’t take away all his hedging targets, right? So, the next thing I thought of was you and your Magellan Fund!”

"Why don't you hedge yourself? Logically speaking, Julian wouldn't be stingy about teaching you this."

Crossing his arms, when Carter said this, Peter Lynch was already sure that Carter meant it!

Objectively speaking, lending Magellan Fund's shares to Carter is a total gain and no harm to Magellan Fund!

First, Carter will pay a margin, and continue to add more as the value of the stock increases. The stock itself is still in the hands of the Magellan Fund. If Carter cannot pay enough margin to lock in the trading rights of those stocks, then what will happen to these stocks is still Magellan's.

The fund has the final say!

In addition, if Carter's short selling is successful, he will double the repayment of these stocks in the later period. These extra stocks can also be regarded as the income of the Magellan Fund. When the U.S. stock bubble bursts this time, the performance of the Magellan Fund is relatively likely

It will be better.

It's just that such a large-scale short selling of U.S. stocks still makes Peter Lynch feel frightened. A margin of 6% to 8% is nearly 17 times of leverage. It's just a high leverage ratio, the amount of funds is still huge!

For a stock worth 10 billion, assuming there are 1 billion shares in total, and the average price falls by one dollar per share, without counting the cost of securities lending, the theoretical profit can reach 1 billion U.S. dollars, but the same is true. As long as each share rises by one dollar,

The floating loss is 1 billion. In fact, an additional margin of 60 million US dollars is needed!

If it rises by one yuan, an additional 60 million will be required! If there is no downward trend for a long time, just the additional margin can drag people to death!

Moreover, this only counts the stocks held by the Magellan Fund! Listening to Carter’s words, he seems not to be satisfied with this part.

You know, Tiger Fund, after seven years of development, is now quite big!

It took him 10 years to expand the Magellan Fund with an initial capital of 20 million U.S. dollars into a large fund with total assets of over 10 billion today; Robert Julian, who is not much worse than himself, can also use seven years to expand the initial capital of 1,300 U.S. dollars.

The Tiger Fund has grown into a large fund company with total assets exceeding US$7 billion!

One-third, that’s more than 2 billion! In just these two places, Carter intends to swallow up 12 billion US dollars of stocks. And there are more than just these two Wall Street, American financial institutions, securities companies, and fund companies?!

"I'm sorry, your news shocked me a little bit. It's so hard to find hedging targets for such a large short position!"

When thinking of this, Peter Lynch clapped his hands in sudden realization. With such a large-scale operation, the possibility of hedging has basically been lost! Even top investment banks such as Goldman Sachs may not be able to come up with both short and short positions in a short period of time.

While having tens of billions of dollars worth of stocks, it can also satisfy the funds required to do long positions on related targets at the same time!

"That's right. Moreover, I have to set aside a margin in case I need to make additional deposits. To be honest, I can last up to half a year! For this operation, I even mortgaged ROG to Japanese banks."

"It seems you have made up your mind?!"

ROG Computer Company, which has extremely exaggerated profit margins, is undoubtedly a hot potato in the capital market. But at the beginning, even its own investment was rejected.

Even this kind of company, which is now regarded as a treasure by Carter, has been mortgaged. If Peter Lynch knew Chinese, four words would definitely pop up in his mind: Burn the cauldron!

This is almost a gamble!

Success! Making a lot of money, becoming rich overnight is an understatement!

But if it fails

That would leave Carter with almost nothing.

"I need to report this matter to the board of directors. Such a major matter is beyond my scope of authority!"

"Of course, I will stay in Boston for two more days. Well, no, there is only one day left. I have an appointment with Mr. Bogle tomorrow night. I will also meet with people from Goldman Sachs and JP Morgan the day after tomorrow, and then

yes"

"I will make this decision immediately. Forget it, I will report it now!"

While Peter Lynch was talking, he picked up the phone on the table. Lynch, who understood that Carter was in a hurry, didn't make any ink.

After reporting the matter and Fidelity's senior management was preparing to convene an emergency board of directors to agree on interest rates, margins and other matters, Peter Lynch put down the phone and looked at Carter:

"Can you tell me how big you are going to play this time? I'm just curious!"

"I have prepared about 6 billion in funds! How big do you think I want to play?"

It was already early July. Thinking about the possible fluctuations in the next six months, Carter said slowly:

"This is not counting margin calls. The two major cash cows, PTU and ROG, will raise the subsequent margin. If that doesn't work, I can also withdraw the deposits in Black Flag Bank in a short period of time. Recently, Georgia, including Florida,

Over there, there are many small banks hit by thunderstorms.”

"And my Black Flag has had a good reputation in the South Georgia region in the past few years. In the newly acquired territory, there is not much difficulty in collecting savings. As long as it doesn't take long, Black Flag Savings Bank can still squeeze out about 800 million.

Funds are used to make margin calls.”

"To be honest, in all my life, I have never been so wealthy!"
Chapter completed!