Reborn as a female internet celebrity in a county town

Chapter 166 Net Worth is the Most Important Thing

Lin Lang was no stranger to fund companies, even though he had interned at a private equity firm in his previous life; essentially, there wasn't much difference.

It's just that private equity firms face less regulation.

Unlike public funds, which must strictly adhere to certain rules and regulations.

Many rules are not set by the company, but by the government.

Currently, no major fund companies have developed a real-time net asset value estimation function. Therefore, if you want to see the status of the fund you bought on the same day, the companies with faster processing speed will update it within half an hour after the market closes.

As for those with slower typing speeds, they'll have to wait until midnight.

Tianjin Capital's structure must be complete, otherwise it wouldn't have been able to pass the approval process, and each department has enough staff.

Yan Li arrived even earlier, at 7:30.

She admitted that she felt a little lost and for a moment didn't even know what to do.

Her emotions only calmed down a little after Lin Lang arrived.

Especially when they saw that Lin Lang was carrying a document.

In her view, this was the result of Lin Lang's communication with his team.

"If I had known there weren't many people in the company yet, I would have slept a little longer."

Lin Lang walked into Yan Li's office with a smile and found a seat.

Yan Li stood up, walked to Lin Lang's side, and said, "Just consider it as coming early to keep me company for a while..."

As she spoke, she subtly took the documents from Lin Lang's hand.

Then, I opened it and took a look.

The first thing you see is a line of text: "This is fake, that's all."

She turned to the next page, which read: "It's really over. I told you, but you wouldn't believe me. Don't turn any further."

Yan Li still didn't stop, turning to the third page, "Why are you so stubborn? It's really over!"

Page four, “Look at you, how much more do you have to suffer before you can trust others?”

Page 5 is blank.

Page six is ​​still blank.

She had almost finished flipping through the few thin sheets of paper.

Seeing Yan Li standing there in a daze, Lin Lang reached out and took the documents from her, saying, "I think it would seem unprofessional not to include something, but there really wasn't much to write, so I just made a few pages."

"What you said makes me even more nervous."

"It's alright, it's alright. Just watch from the side, and I'll show you how to fly!"

"Oh, have you discussed it with the team?"

“We must have discussed this. Let’s set a small goal first: double our net asset value in two weeks.”

"what?"

Net asset value doubled in two weeks?
The fund's current net asset value is 1. Will it become 2 after two weeks, or ten trading days?

This means that the initial investment could double in profit within two weeks.

Over ten trading days, with compound interest, an average return of seven percent per trading day would be needed.

"Come on, let's sign the agreement!"

The performance-based agreement hasn't been signed yet, but Lin Lang came so early today just to sign it.

"okay."

Yan Li didn't think too much about it; she was certain she would go to the trading room today anyway.

Around 8:30, a group of six or seven people entered the trading room. During trading hours, people are not allowed to leave the room.

This fund has two fund managers who are no longer in the company. One of them is Yan Li, and the other... didn't come.

They're just using their names as a figurehead.

The main issue is that there are specific requirements during the approval process, and Yan Li does not meet the requirements for the work experience option.

As for Lin Lang, he entered as a trader.

The original procedure was that everyone followed the instructions of Yan Li, the fund manager.

Yan Li, on the other hand, had also prepared a bunch of operation manuals. After all, she couldn't place all her hopes on Lin Lang and was prepared to take over at any time.

To this end, she has spent several months reviewing and researching, and has compiled an operation manual.

By 8:50, it had basically officially started.

Although the official opening time is 9:30, Tianjin Capital has a lot of funds and needs to make a lot of arrangements simultaneously.

Lin Lang pulled a document out of the folder and distributed it.

Then, the explanation began.

The main point is to talk to those traders about how to perform certain operations during the opening auction to acquire a certain amount of chips from the market.

There was very little room for maneuver today, since all we could do was buy, and once we bought, all the funds were useless.

Yan Li glanced at it and was certain that the contents were things she had never seen before.

But Lin Lang wouldn't add anything halfway through, so... the instruction manual was actually at the back? He just hadn't found it?

This guy……

However, she was somewhat stunned when she saw the markings on Lin Lang's operation manual.

Almost without surprise, they were all small-cap stocks.

They are all small companies with a market value of three or four billion, and very few have a market value of over 10 billion.

Dozens of targets were densely packed together.

How can you play with small-cap stocks? This is only the first day, so we should prioritize stability.

Yan Li even considered going directly to the bank, since her product didn't have many restrictions and she could buy any kind of ticket.

Unlike some funds that specifically recommend buying into technology, photovoltaics, or liquor stocks.

Of course, it's normal for them to manipulate other tickets privately; it's not absolutely strict.

Having already handed over the trading room access to Lin Lang, she couldn't say anything, since questioning Lin Lang's choice at this time wouldn't be good for him.

To issue an order, one must have absolute authority.

After making some simple arrangements with Lin Lang, Yan Li began to study the matter seriously.

Lin Lang's chosen targets are very concentrated in two thematic concepts: ultra-high voltage power transmission and 5G.

Lin Lang is trying to create a story!
This is how retail investors and speculative capital operate.

Legitimate public funds would never resort to such tactics.

To put it bluntly, the risk is too great.

Small-cap stocks in the A-share market lack resilience; they could plummet to rock bottom if the market experiences sharp fluctuations.

Moreover, with such a small portfolio, it would be difficult for the fund to sell off a portion of its shares and raise the remaining funds in a short period of time should it face redemptions.

A small company with a market value of three or four billion can't possibly sell someone 50 million worth of chips in a single day, can it?

In that case, it would immediately plummet to the daily limit down. Don't be fooled by the fact that many small-cap stocks have daily trading volumes of several hundred million; that doesn't mean you can easily sell 50 million.

Once the funds inside detect a sell-off, they will act first to drive the stock price down.

Unless a nuclear button is pressed directly, but the market is small with a value of several billion, the pressure is extremely low in the short term, and at most it can only absorb a few tens of millions.

For fund companies, the flexibility of their resources is more important than anything else.

When the call auction began, Lin Lang named several targets in succession, allowing the traders to place orders.

Because there were no chips available, only buy orders could be placed, and many stocks were driven up by several points during the pre-market auction.

Time passed by, and at 9:25, the auction ended, but Lin Lang did not request the cancellation of the order.

Because the orders were placed upwards, a significant amount of money was traded immediately, involving more than a dozen stocks and totaling over 100 million yuan in transactions.

"After the market opens, everyone rushes to buy, and all targets must be entered into. The price is capped at two points above the opening price, and then the buying stops..."

"Small quantities, multiple orders..."

Lin Lang was staring at the central screen, which had thirty-six split screens. Since he wasn't doing much this time, one screen was enough.

If you hold more stocks, there is a spare screen available.

He was watching the price movements of every single stock.

As he expected, some stocks opened two points higher and were quickly pulled up to three or four points because they had reached his predetermined price, so they subsequently began to fall back to some extent.

Of course, some continued to rise.

There are 36 targets. If we were to invest all our funds in each stock today, we would need to put around 30 million into each stock.

For a market capitalization of four to five billion, thirty million is a significant sum, enough to influence short-term market trends.

"For those going up, wait a while; for those going down, add one million for every point."

"For Dongfang Communication, we will not take any further action until it falls back underwater... We must not let it drop below the lowest point underwater."

Lin Lang's main task today is to accumulate shares.

Because they lack sufficient capital and have limited control over the market, they can only create the illusion of a price surge.

It's perfectly normal for these small-cap stocks to surge. After all, it's difficult for large amounts of capital to exit these stocks. At most, they just do some day trading to lower their costs. Over time, they become invincible.

Any small-cap stock will have a large number of shares with a negative cost price.

A surge followed by a pullback is not uncommon in almost any stock, and it's a point that large funds must address.

A surge at the open can easily tempt some people to sell their shares, waiting for a pullback before buying back in.

In this way, even if you only do one point of trading each day, as long as you have enough research and experience with a particular stock, you will still have the opportunity to make money over the long term.

Seven or eight years ago, only speculative funds did this, but now retail investors have also learned these operational strategies.

Therefore, after the surge, many stocks experienced a certain degree of selling pressure.

Lin Lang didn't dare to take on too much, lest he be noticed. He decided to wait until he had invested at least a third of his stake before he could continue to test the waters.

His tactics weren't particularly sophisticated, mainly because he knew these two themes were the hottest topics this month.

A theme that can remain popular for a month is not something that can be controlled by one party alone. No amount of money can create a theme, and even if it is, there is no way to exit the market.

These ventures often occur alongside trending topics related to the subject matter. Only under the cover of these trending topics and with the influx of capital can they succeed.

Over the next month, various hot topics will emerge from these two themes.

Some trending topics are real, while others only emerge when the market demands them.

After a year of bear market in A-shares, there are finally two themes with sustainable potential, which will soon be heavily speculated on!

Lin Lang can be the one to ignite the flame, the one to lead the charge, but he must first secure the necessary resources.

All of Lin Lang's methods were derived from certain outcomes.

Anyone with even a basic understanding of finance, or a little practical experience, could potentially do just as well as him, given a clear outcome.

It's simply that he's more meticulous and considers things more comprehensively.

For him, the movement of each stock is a new test.

Some stocks continued to rise after opening three or four points higher, giving him no chance to enter the market. However, those stocks were exactly the ones he wanted, since he always needed to select one or two leading stocks in a particular theme or concept.

Even if a trending market lasts for a month and the leading stocks change several times, the old leading stocks still have great potential.

Retail investors tend to be late to the game. By the time they notice a particular topic, the old stock might already be outdated. But if given a chance, they will still enter the market.

The real support comes from retail investors.

Taking on large sums of money is of little significance.

Therefore, the old leading stock can be used to ensure the flexibility of funds.

……

Yan Li watched from behind, and realized that this was how speculative capital operated.

They have a very fine grasp of the market; even without any actionable chips in hand, they still manage to acquire a considerable number of chips within an acceptable range.

By 11:30, the cost of all the chips was basically only about one point above the water level.

Of course, the company is currently operating at a loss.

The total holdings amounted to 330 million, with a loss of 2.6 million.

A loss of less than one percent on a single position, when factored into total capital, amounts to a loss of less than 0.3%.
11:30, time to rest.

The traders gradually went out to eat, but Lin Lang and Yan Li did not leave.

Lin Lang was busy planning his afternoon tasks. He had already secured over 300 million chips that morning, which was enough for him.

He hasn't decided what to do this afternoon yet.

You can either keep adding chips or ignite the fire directly.

During the ignition process, there's a high probability they can get another four or five hundred million.

But that's not enough...

Lin Lang is definitely going to go all in.

"What are you thinking about?"

Yan Li asked a question.

"It's still too difficult to figure out how to go all in... and put money into these small-cap stocks."

"No rush. Our new fund doesn't have any position requirements right now, so you can operate freely."

For equity funds, once they enter a stable period, there are minimum holding requirements.

The fund's position should not be lower than 80%, and holding any single stock should not exceed 10% of the fund's total capital.
This means that a stock fund with a scale of one billion yuan must have at least eight hundred million yuan in holdings, and the holding size of a single stock cannot exceed one hundred million yuan.

That applies to the stable period. Newly issued funds currently have no requirements regarding their holdings, and they can only enter the stable period after six months.

"However, there are requirements for net asset value growth... If you have too many open positions, it will drag down the net asset value."

If you invest 500 million, even if you earn 50 million from that investment, the net asset value increase will only be 5%.
If all one billion is invested, even if an additional five hundred million is invested, and the overall profit is only sixty million, then the net asset value increase is still 6%.
"So... what are you planning to do?"

Yan Li couldn't find a reason to refute Lin Lang, and pursuing net asset value was undoubtedly the most important thing for Tianjin Capital at the moment.

Fund investors don't care whether you're holding cash or not; all they see is the net asset value (NAV), which represents their daily returns.

(End of this chapter)