I am the only one who practices magic: I practice magic in the city

Chapter 366: Frequent small profits, small losses, occasional big profits, never big losses (3600)

"Has Jane Jiang's employment been completed? Good, 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 have I not felt this kind of throbbing in my heart?

Although his years of lavish living 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 will haunt me. When I close my eyes, all I can think of is this woman's every smile and frown. I unconsciously look for her figure in the crowd, approach her as if nothing happened, and then observe her secretly...

For him, these were 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 hard study and practice, 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 concentrate all her divine power within her body, but also seduce only specific targets, instead of inflicting uncontrolled force field damage.

Sixty-year-old Robert Capito sighed and uttered an inaudible sound: "My love is like a fever, I long 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 be responsible for speaking at two more seminars this afternoon." Larry Fink didn't care about Robert Capito's unusual behavior. This bald man had followed 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. He was supposed to attend two seminars in the 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 when he took the schedule handed over by Larry Fink. He glanced at it and his eyes couldn't help but freeze.

"Then I'll choose the seminar held by the fund company in Da Zhou. I'm somewhat 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 without noticing anything. "Robert, your intuition is still very sharp. This small company is indeed interesting. The cumulative return rate in 100 trading days is close to 500%. I guess they must have developed some new algorithm."

"Mark is in charge of alternative investment business. I originally wanted to have him contact this company. Since you are also interested, then you can go."

The Mark mentioned by Larry Fink refers to 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 what Larry Fink said, Robert Capito licked his lips slightly nervously.

"Good, good."
-
When Robert Capito entered the Schubert Conference Room, 404'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, and opposite them were more than 100 institutional investors and representatives of various types of hedge funds or financial companies.

"...the average annualized return rate of private equity funds in the industry is around 10% to 15%, and the net winning 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 verbatim.

In the capital market, success or failure is the only criterion for judging a person’s success. There are so many talented young people, but no one at the scene challenged the ages of the three men.

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 one hundred trading days' trading results.

Moreover, the three Zhou brothers' understanding of the Maiguo market and the long-term stability of their strategies are also attributes that deserve to be classified as high-risk.

As mentioned before, when capital reaches a certain level, the most favorite thing may not be growth, but the most hated thing must be depreciation and loss risk. Therefore, even though the yield level of 404 crushed all private equity companies, it still failed to conquer the institutional investors on the scene.

After all, private equity firms that manage assets below 13 million dollars do not need to fill out Form F to disclose their holdings to the SEC (Macau Securities Regulatory 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.

"I'm sorry, that's not the question I asked just now. I know that your performance in the past 482 trading days has been very impressive, with a return rate of %."

"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'? Is there a plan to prevent large losses?"

"Basically, you didn't answer any of the questions I just asked accurately, which makes me suspect that your so-called Woking system is just a gimmick and cannot 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, and 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 people, but he has almost never lost money. Moreover, among the few people, he is the most familiar with the Woking system and uses the most tools in it. 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 am James Whitaker, the investment operations director of Harbor Point Retirement Fund. I made an appointment for a discussion with you because I saw in your promotional materials that your Fund No. 4 focuses on high returns with security."

"Based on your current performance, 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 don't waste your time."

Harbor Point Public Retirement Fund is a private retirement fund in San Francisco with over $390 billion in assets under management. Its investment strategy focuses on risk-adjusted returns, investing primarily in fixed income, high-quality equities, and selected hedge funds and alternative investments.

The funds of private pension institutions account for 40% of the US mutual fund market, equivalent to 30% of US 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 fight against risky products.

The reason why James Whittaker chose 4's symposium this time is because the No. Fund that is promoting focuses on high returns with security.

This time, 2 opened subscription for three funds, namely 3 million Malaysian dollars, 5 million Malaysian dollars and million Malaysian dollars.

Among them, the 5 million US dollars Fund No. 12 claims to be able to reduce the risk to the level of investment-grade corporate bonds while maintaining the private equity industry's average annual return of %.

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 born with a performing personality, and the more nervous he was, the more excited he became.

"Mr. Whitaker, it is like this. The 75% strategy success rate is the actual result of the No. 1 Fund that we have closed. But I do not deny that the investment strategy adopted by No. 1 Fund is relatively aggressive."

“We are not a high-frequency quantitative company, but through the roadshow just now, you should also be able to see that our portfolio adjustment cycle is mostly short-term and medium-term. Although we rarely conduct T0 transactions, we usually make adjustments within 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.”

"But in Fund No. 4, since its size has exceeded million dollars, in order to comply with the regulator's requirements for large-scale fund liquidity, the frequency of position adjustments will be appropriately slowed down to reduce market impact costs."

"Therefore, we will use our own value investment strategy on Fund No. 4. According to our prior analysis, under the value investment strategy of the Woking system, 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 value investment strategies because their scale exceeded 1 million dollars in order to reduce disclosure requirements and regulatory pressure. You didn't mention the risk issue. Does your fund also have the risk level of double-A corporate bonds?"

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, has a higher risk level than Fund No. 4, which adopts a value investment strategy."

Whitaker couldn't help but nod. That was more like it. If he had said that Fund No. 1 had the risk level of Double-A bonds, he would probably have turned around and 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 the index fund level."

Whitaker almost spit out a mouthful of blood, and the hundreds of 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 madman, and more likely a fool!
Robert Capito, who had been secretly staring at Jiang Nanzhen, couldn't help but shake his head.

This company was definitely lucky to have achieved such a high return rate.

When Luo Ziming saw the reactions from the audience, he felt uneasy and regretted that he was used to talking nonsense. Who would believe him?

Just as I was about to go back and add a few words, I suddenly felt my mind clear.

"I am not exaggerating. In fact, this is still a relatively conservative estimate. The purpose of the Woking system is: frequent small profits, small losses, occasional big profits, and never big losses."

"Words are not enough, I can show you how to do it."

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 modified.

Memory is indeed an unreliable thing.

Note 1: Taken from Shakespeare's Sonnet 147.

Original text:

My love is like a fever, always expecting,

The care for this disease can be prolonged;

Take food that can maintain the symptoms,
Pathological abnormality of satisfying appetite;
Reason, the doctor of my love,

Angry that I did not follow his medical advice;

Walk away in anger, let me prove in despair,
Desire is death, and there is no way to save it;
Reason has left me, and I can no longer heal.
Only fall into endless anxiety and frenzy;

Both thoughts and words are like a madman,

To make things up in vain;
Because I swore you were perfect and pure,
In fact, it is as black as hell and as dark as the evening night.



(End of this chapter)