Reborn in 2012, building a new energy empire

On the first trading day of July, the soybean meal 1301 contract opened at 3468 yuan.

After repeated testing and consolidation around the 3440 level at the end of June, the market seems to have finally cleared out the previous profit-taking and also driven away some impatient bulls.

The market is showing a subtle "lightweight" state, with trading volume increasing moderately, but the resistance to price increases has clearly decreased.

Jiang Haoran looked at the market; his 1000 long positions were showing substantial unrealized profits, but he remained motionless—he was waiting for a clearer signal.

At 10 a.m., the price slowly climbed to around 3475.

At this point, the order book changed: several large buy orders of over 3000 lots appeared in the 3470-3480 range, directly pushing the price up to 3488!

"This isn't retail investor behavior; speculative capital from Jiangsu and Zhejiang has entered the market." Jiang Haoran's eyes narrowed.

Based on memory, industrial capital (such as feed companies and traders) were among the first to discover and invest in this agricultural commodity bull market driven by the drought in North America.

Following this were astute private equity firms and some institutional funds; and now, the most astute and ruthless private speculative capital has finally entered the market on a large scale.

Their operating style differs from that of industrial capital: they do not seek steady, long-term gains, but rather aim to quickly drive up prices, create a profit-making effect, attract followers, and distribute shares at high levels.

The opportunity was right in front of him, but Jiang Haoran did not rush to buy at a high price.

He patiently waited until the afternoon, and when the price retraced and fluctuated to near the intraday moving average, he decisively bought 300 new long positions at the market price.

"Brother Hao, should we buy more now?" Fatty Li hesitated, looking at the price that had just corrected.

"After the market has consolidated, it's likely entering an acceleration phase," Jiang Haoran said, staring at the charts. "But acceleration doesn't mean a straight upward surge. They're accumulating near the moving averages, so I'll follow suit and build my position."

Instead of simply adding to his position, he performed a "position rebalancing" operation:

First, close out 200 long positions at an average price of 3575 (the cost of this part is extremely low, about 3100 yuan), locking in a profit of over 95 yuan.

Then, when the price retraces to around 3570, slowly place small orders at market price to gradually buy 500 lots of new long positions.

After adding 300 long positions, Jiang Haoran's total open interest rose to 1300 lots, with the average cost increasing slightly, but he still retained sufficient margin.

As expected, driven by speculative capital, the soybean meal 1301 contract surged in the next two trading days, easily breaking through the psychological levels of 3500 and 3520, and closing above 3550 yuan on Wednesday!

Market sentiment was completely ignited. Financial media began to report extensively on the "soybean meal bull market," analysts raised their target prices one after another, and "weather market" became a hot topic.

Fatty Li stared at the dozens of long positions he'd placed in his account following Jiang Haoran's lead; the unrealized profit had already more than doubled his initial investment. His hands trembled with excitement: "Brother Hao, this...this is too fast!"

"This is just the beginning," Jiang Haoran said calmly. "The entry of speculative capital means the market is entering an accelerated phase. There will be greater volatility, but also more opportunities."

On July 11, just five days from now, the crucial monthly supply and demand report will be released.

This report will adjust key data such as U.S. soybean acreage, yield estimates, and inventory.

"The current rise is just a warm-up," he told Fatty Li. "The real battle will take place in the week the report is released."

On Friday, the soybean meal 1301 contract closed at 3592 yuan. Following this round of position rebalancing and price increases, Jiang Haoran's total account equity officially surpassed the 500 million yuan mark.

More than 230 million in available funds lay quietly there, like a reserve force ready to be deployed to the battlefield at any time, providing him with ample confidence and buffer for any subsequent decisions.

The market downturn has temporarily subsided, but Jiang Haoran's pace has not slowed down.

Over the weekend, with a clear purpose in mind, he met with Shen Mo, a senior alumnus who had graduated from the law school.

The air conditioning in the downtown café was so strong that it felt like a completely different world from the sweltering heat outside.

This senior colleague, who was introduced by Professor Wu Weizhen and has been working at a top law firm for five years, is the ideal candidate to handle this type of collaborative framework.

Senior Shen Mo has interned at King & Wood Mallesons for two years and has been practicing law for three years, specializing in private equity funds and M&A business. He is very familiar with transaction structure design.

"Senior Brother Shen, this is roughly the situation." Jiang Haoran briefly introduced the possible cooperation intention with the investor (Zhou Mingyu) and his initial ideas about the "subordinated-senior" structure.

After listening, Shen Mo adjusted his glasses, displaying professional caution: "The approach is very professional; this type of structure is indeed commonly used in practice. However, to implement it effectively, there are several key points that must be clarified..."

"A very professional idea. In fact, this structure is very common in private equity funds and hedge funds, where subordinated funds take on greater risks and enjoy excess returns; senior funds pursue fixed or floating returns and have lower risks."

"However, there are a few key points that need to be clarified: First, the form of the legal entity. Should it be a limited partnership (LP) or a limited liability company? Partnerships are more flexible and allow for tax transparency; companies are more standardized, but subject to double taxation."

"Second, the decision-making mechanism. As an investment manager, what is your level of authority? Will the investors send risk control or investment committee members? Do key decisions (such as how much a single loss should exceed, or the concentration of holdings) require unanimous agreement?"

"Third, the fee structure. Besides profit sharing, are management fees charged? How are the thresholds for performance-based compensation (high-water mark method, threshold rate of return) determined?"

Fourth, the exit mechanism. What is the cooperation period? What happens if there is a redemption midway? How are assets distributed during liquidation?

……

Jiang Haoran listened attentively, occasionally jotting down key points in his notebook. This was exactly the professional support he needed—the ability to solidify his ideas into a rigorous agreement.

"Senior Brother Shen, your explanation is very thorough." Jiang Haoran closed his notebook.

"Then, could you please help draft a preliminary cooperation framework agreement? As for the fees, we'll follow market standards."

Upon hearing this, Shen Mo waved his hand and said in a friendly tone, "Professor Wu specifically asked me to take good care of you. You are Professor Wu's prized student, whom he praises highly. Consider this agreement as a senior supporting a junior's entrepreneurship, and the fee will be based on cost price."

"Moreover, your case itself is very valuable. A college student independently managing funds of this scale can also attract cooperation from industrial companies."

"If it can be successfully implemented and achieve results, it will be an excellent supplement to my future practice cases."

Shen Mo picked up his coffee and took a sip, seemingly casually mentioning it, yet with a hidden meaning: "Of course, if things go well, don't forget to give your senior a helping hand."

"Living in Nanjing is not easy. We lawyers earn a meager living, and we still have to support our families. We also need to find good investment opportunities for ourselves, right?"

By saying this much, the friendship between fellow students was preserved while leaving room for future cooperation; the balance was just right.

Jiang Haoran understood immediately and nodded solemnly: "Senior brother, you flatter me. I will remember your kindness, and I entrust the agreement to you."

"The core principles are twofold: first, my investment decision-making power must be independent; second, the return requirements for senior capital cannot be too high, and sufficient profit margins must be provided for junior capital."

"Understood. I will design a solution that is acceptable to both parties while protecting your interests."

As he left the café, the sun was setting. Everything was progressing steadily according to his plan.

But Jiang Haoran knew that the real test was about to begin. The USDA report a few days later would determine whether this soybean meal price surge could evolve from a "trend" into an "epic bull market."

He must not only protect his existing profits during that storm, but also seize the opportunity to achieve another leap in capital.

His goal was clear: to reach ten million in the account before August.

This is the "ammunition" reserved for the development of real industries, and also the confidence to provide "subordinated funds" when cooperating with Zhou Mingyu in the future.

The wind has risen; what begins as a small ripple will eventually transform into a storm that sweeps across the land.

And he wants to be the one who rides the wind.