My absurd experiences in North America over the years

At the end of November, Li Fu sat in the Forrest Capital office, staring at the euro and yen quotes on the screen. He didn't remember the exact date, but he knew it was the peak that would occur in the remaining month.

On November 25, the euro hit an annual high of 1.5144 against the dollar before falling slightly. Out of caution, he did not wait any longer and immediately closed all his positions.

On November 27, the US dollar fell to a 11-year low of 86.29 against the Japanese yen. The next day, the dollar closed with a candlestick with a lower shadow. Li Fu did not hesitate and issued an order to close all positions.

At this point, all foreign exchange positions for April have been closed out.

After adding to the euro position, there were three batches of closing positions with an average price of around 1.5100. After adding to the yen position, there were four batches of closing positions with an average closing price of around 86.50.

The entire liquidation process lasted approximately fifteen minutes.

That afternoon, Lina finished the settlement report. The profit was not as good as the Australian dollar, but it was still quite considerable.

Second dividend settlement (Euro + Yen, November):

Project Amount

Euro profit of 18.91 billion

Japanese yen profit of 11.99 billion

Total profit of 30.9 billion

Performance-based commission (20%): 6.18 million (attributable to Forrest Capital)

Distributable profits: 24.72 billion

Dividends (half): 12.36 billion

Fund retention: 12.36 billion

Distribution according to capital contribution ratio:

External LPs (50%): 6.18 billion

CP Group (30%): 3.71 million

Forrest Capital (20%): $2.47 million

Including the first dividend (in October, total profits in Australia reached 66.39 billion):

• Performance-based compensation: 13.28 billion (attributable to Forrest Capital)

Distributable profits: 53.11 billion

• Dividends: 26.56 billion

External LPs (50%): 13.28 billion

CP Group (30%): 7.97 million

Forrest Capital (20%): $5.31 million

Summary of the two dividend distributions:

LP First time (Australian Dollar) Second time (Euro + Japanese Yen) Total

External LPs (5 million investment): 13.28 billion, 6.18 million, 19.46 billion

CP Group (investment of 3 million) 7.97 million 3.71 million 11.68 billion

Forrest Capital (invested 2 million) 5.31 million 2.47 million 7.78 million

Total: 26.56 billion, 12.36 billion, 38.92 billion

The LPs not only recovered their entire principal (8 million), but also earned an additional 28.92 billion. In just six months, the return rate was close to 290%.

Li Fu himself certainly made a fortune.

His income mainly comes from two sources: income as a fund manager and dividends from Forrest Capital shareholders.

Forrest Capital is the manager of the joint fund, and he is the actual controller and operator of Forrest Capital. In the two dividend distributions, Forrest Capital took away a total of 19.46 billion in performance fees (13.28 billion + 6.18 million).

This is the compensation for the funds managed by Forrest Capital.

When the fund distributed dividends for the first time, he was still the largest shareholder, holding 70% of the shares. His performance-based income was: 13.28 billion × 70% = 9.30 million.

The shareholder dividend is: 5.31 million × 70% = 3.72 million.

The two items combined brought in approximately 13.02 billion.

In the second dividend distribution, which is this one, he remains the largest shareholder, but his shareholding has decreased to 45%.

The specific income is as follows:

Second dividend payout (end of November, 45% shareholding):

• Performance-based commission: 6.18 million × 45% = 2.78 million

• Capital contribution and dividends: 2.47 million × 45% = 1.11 million

Total: 3.89 million

Because the fund industry typically operates using a "limited partnership" structure rather than a "company," under tax law, the fund itself does not pay taxes under a limited partnership; all income is directly "through" to the partners, who then pay their own taxes.

In other words, Li Fu's total pre-tax income from management fees and dividends was 16.91 billion yuan. After deducting approximately 15% personal dividend tax (2.54 million yuan), his net income after tax was approximately 14.37 billion yuan.

This money belongs to him personally and is unrelated to Forrest Capital's long-term equity assets or the $38.91 billion held in the fund account. It is property that he can freely dispose of.

This is an enormous sum of money.

However, he didn't care that much, because he was already financially independent.

After the LPs' dividends were transferred to the various LPs through JPMorgan Chase, Jackson called, his voice filled with unspeakable shock, "Li, this is already the second dividend payout this year, how did you manage to do that?"

He had never seen a fund distribute dividends so frequently. CP Group had distributed more than 12 billion in dividends to its limited partners (LPs) and shareholders (shareholders) twice.

A typical LP has around 200 million, and even the smallest Rubin has tens of millions.

"If you want to see it, you can see the transaction records in your JPMorgan Chase back-end system," Li Fu replied with a smile.

"My God! This is unbelievable," Jackson said, somewhat regretting that he should have involved JPMorgan Chase directly instead of only referring high-net-worth clients. "Do you know what's being said on Wall Street?"

"What's the rumor?" Li Fu asked, somewhat curious.

"The chosen one...the invincible one...the mastermind of God," Jackson said, repeating the three nicknames in a row.

Li Fu was slightly taken aback. Sure enough, religious countries were still more likely to associate themselves with God. He smiled wryly at this moment, never expecting that one day he would have to rely on this to break the deadlock.

The twilight outside the window is slowly deepening, and the distant city outline is blurring into a uniform gray.

He stood up, turned off his computer, and prepared to go home.

The next morning, CP called right on time, his voice filled with his characteristic excitement, "Li, you're a genius! My phone's been ringing off the hook. So many people are asking when you're going to do your second round of fundraising."

"I'm afraid there won't be a second round of fundraising. There's still 3 billion in the fund's account that hasn't been allocated for investment!" Li Fu had absolutely no intention of raising funds.

He was even a little worried about the specific quota.

"When are you going back to New York? I'll introduce you to some people," CP fully agreed with Li Fu's decision, but there were still some favors to consider.

"I'm not going back for now. I still have some things to finish, it might take about two weeks!"

Li Fu needs to redistribute the money in the fund. In addition, he has a task for Lina. Since Lina has left the Nashville headquarters, he will have to take charge himself.

CP was slightly disappointed. "Then come over as soon as you're done. We have to meet."

He needed Li Fu's advice to begin his political maneuvering, or rather, he wanted Li Fu to "predict good and bad fortune and deduce the future."