Reborn Xiangjiang as a Tycoon

Chapter 564 Prepare in advance

Internationally, although oil prices are still rising, many of the long oil futures orders operated by Vivien Kelly have been closed.

The current situation is that Vivien Kelly is not prepared to close all her long orders, and she reported her plan to Lin Baicheng.

Vivien Kelly was responsible for long oil futures, using a principal of US$380 million to operate US$2 billion in funds, and the cost price dropped to US$13.1 per barrel after several short-term differences.

When the price of oil exceeded US$15 per barrel, Vivien Kelly had already begun to close out her long orders in small quantities.

Oil prices have now risen to around $15.8 per barrel.

Vivien Kelly's original plan was to close all the long orders and end this operation. Even if she wanted to do oil futures again in the future, whether it was long or short, she would not use such a large amount of funds, with a few hundred million dollars.

Just operate it.

Now she has changed her mind, and the reason why she changed her mind is because she read media reports saying that there are military mobilizations on the border of Hongsu. Now she is not sure what Hongsu thinks. Maybe it is just an exercise, maybe Hongsu will

Which country started the war.

Once a war breaks out, given the current relationship between Hongsu and Western countries, it will inevitably trigger geopolitical tensions. People will even worry about the outbreak of a larger-scale war, and risk aversion will heat up.

The price of oil and precious metals such as gold are bound to rise.

These are all uncertain now, but Vivien Kelly believes that the company's current long oil futures orders have a large floating profit, so it is entirely possible to choose to close part of the long orders, and the remaining long orders will be temporarily closed.

Take it, as long as the oil price does not fluctuate violently, you can bet on the rise in oil prices caused by geopolitical changes.

It is absolutely possible to bet on a larger upside with a small downside.

Therefore, Vivien Kelly reported to Lin Baicheng that she hoped that the long oil futures orders would be temporarily closed with 1 billion US dollars in funds, and the remaining 1 billion plus orders would still be held, and decisions would be made later based on changes in oil prices.

In fact, Vivien Kelly never thought that she would be able to leave as many long orders as US$1 billion. If it were Merrill Lynch, Goldman Sachs, Citigroup and other institutions where she worked before, they would choose to pocket more profits, and then

Give her some more funds to operate. Let alone 500 million US dollars, it would be good to have 300 million US dollars left.

Of course, in the case of Vivien Kelly, it is more likely that she will not be able to operate 2 billion US dollars of funds as she does now. Her gender and qualifications determine that she cannot operate such a large amount of funds so quickly.

After listening to Vivien Kelly's report, Lin Baicheng naturally agreed. Because he knew that the war in Afghanistan would break out, but he didn't know the specific day when it would break out.

For a long oil futures order worth US$1 billion, the buying cost price is US$13.1 per barrel, but the average selling price is US$15.53 per barrel. As oil prices continue to rise, more long orders are closed.

An increase of 18.55% may not seem large, but after enlarging the amount of funds to US$1 billion, it would be a profit of US$185.5 million.

Of course, these profits will also deduct US$1 billion in leverage interest, which is 9% annual interest, which lasts for almost two months, so the leverage interest alone is about US$15 million.

The remaining US$170 million or so still has to be deducted for tax, which is fortunately only about 4%, and the handling fee is also required, but fortunately the handling fee is even less.

Finally, there is a bonus. Although there are still 1 billion US dollars of long orders in operation, this operation is not over yet. But since half of the long orders have been closed and the profits have been pocketed, why should a part of it be given to the team?

Bonuses will do, so that people can be more motivated to make money.

Don't even think about such a beautiful thing if you want the horse to run but don't give it grass to eat.

In the end, only the net profit of US$157 million belonged to Golden Fleece Company, that is, Lin Baicheng himself. As for the principal of US$1 billion, it was leveraged financing funds and belonged to the bank. Of course, after the long order was closed,

It was taken back by the bank.

Of the remaining US$1 billion long orders of Golden Fleece Company, US$380 million belongs to principal and US$620 million belongs to leverage financing.

Golden Fleece Company closed off a US$1 billion oil futures long order and profited US$157 million. Lin Baicheng directly transferred US$150 million away. He has a lot of money to spend now, and there is no need to put too much money in Golden Fleece Company.

There, he asked Haruko Mouri to be responsible for transferring the funds to several funds registered under his name.

When you need money, just let the fund transfer the money to the corresponding place in a roundabout way.

Lin Baicheng first found a suitable time in both Hong Kong and New York and contacted Maori Haruko.

"Haruko, what do you think about Vivien Kelly telling me to set up a fund?"

"Didn't you agree that she would be responsible for managing the fund?"

"I have no intention of going back on my words."

Lin Baicheng listened and said: "What I mean is, what is the appropriate size of the fund, what direction is the fund mainly responsible for investing, and so on."

Maori Haruko said immediately: "Makoto-kun, I think this is something she should report to you, rather than you thinking about it."

Lin Baicheng said: "That's true, but I don't want the funds managed by the company to have problems."

Maori Haruko thought for a while and said: "In that case, you can formulate a framework for her."

"I think I roughly understand what you mean."

Lin Baicheng understood. He then chatted with Maori Haruko for a few more words and then hung up the phone.

Later, Lin Baicheng contacted Vivien Kelly.

"Vivien, what are your plans for establishing a fund? Do you have any preliminary ideas now?"

Lin Baicheng got straight to the point.

"Yes, I have taken the time to make a plan. Chairman, please wait a moment and I will report to you right away."

There was silence on the other side of the phone after Vivien Kelly spoke, obviously she had left and was not by the phone.

After a while, Vivien Kelly's voice rang on the phone: "Chairman, are you still there?"

"I'm here, just tell me."

Lin Baicheng picked up the microphone on his desk.

"I have made preliminary plans regarding the fund. If there are any shortcomings, please correct me, Chairman."

"The first is the amount of funds raised by the fund. Our company is not well-known on Wall Street. Although there are some achievements that the oil futures deliberately put on the public eye, our company is still a newcomer on Wall Street after all."

"In addition, since we are a newly established fund, it is difficult for clients to believe that we will bring them high rates of return. Therefore, I think the initial fundraising amount should not be set too high. US$100 million will be enough.

Already."

"To be honest, with the current size of our company, it is impossible to raise more funds, so US$100 million in funds is more appropriate."

"Then about the type of fund, I think we can make a hybrid fund, which does both stocks and futures and bonds."

"After all, we are a small fund. Too much risk will make investors worried. Therefore, a leverage ratio that is too high is not suitable for the fund. The funds for futures bonds can only be 20 to 30% of the position at most."

"About fund commissions"

Vivien Kelly was talking about her plan, and it was obvious that she was serious about it. Lin Baicheng listened attentively and responded or asked some questions from time to time.

After nearly half an hour, Vivien Kelly finished her report, and Lin Baicheng also had a detailed understanding of Vivien Kelly's plan.

As for Vivien Kelly's plan for the fund, Lin Baicheng has no big problem with the general direction. He agrees with it. After all, the fund is to be controlled by Vivien Kelly. If there is no problem with the general direction, Vivien Kelly's opinion should naturally be the main one.

.

"Vivien, regarding your plan for the fund, I have no problem with the general direction and I agree with it."

“Thank you, Chairman, for your affirmation!”

Vivien Kelly was very happy to hear this, which was recognition of her.

Lin Baicheng: "As for the amount of funds raised by the fund, don't you think 100 million is too small?" Although he did not intend to make the fund too big at the beginning, only raising 100 million US dollars in funds was too small in Lin Baicheng's opinion.

Smaller.

Vivien Kelly said: "Chairman, in fact, I think the amount of funds raised by the fund at the beginning is not too small. As long as we can achieve results, we can open a second phase of the fund at any time and continue to raise funds from the outside."

"Since you think it's okay, then so be it."

After all, it was decided to hand over the fund to Vivien Kelly, so Lin Baicheng did not insist on it: "As for the arrangement of the fund, I think it is fine. There is nothing to say, so let's just do it."

"Thank you, Chairman!"

Vivien Kelly was overjoyed when she heard this, so she left faster than several other managers in the company.

Leaving the fund to be managed by Vivien Kelly does not mean that there is no supervision, there must be supervision, but it is only up to Vivien Kelly to decide how to invest the funds, so Lin Baicheng did not say much about the details.

Lin Baicheng and Vivien Kelly then ended their conversation.

As oil prices rise, Lin Baicheng pays attention to the trend of international gold prices.

The international gold price has stabilized at present, fluctuating below 400 US dollars per ounce, and has been fluctuating for several trading days. If there is no big negative or positive news in the short term, then the international gold price is likely to continue to fluctuate sideways for a while.

This is not a bad thing for Lin Baicheng. Hutchison Whampoa's funds for long gold futures have not yet completed all positions, and now is a good stage to build a position.

The next night, Iwasaki Mineryu, who had left Hong Kong and returned to Tokyo for a while, specially invited Lin Baicheng to have dinner at his home. Lin Baicheng naturally had no reason to refuse.

After chatting for a while, Iwasaki Mineryu mentioned something.

"Jun Lin, there is something I want to talk to you about Bailong Commercial Club."

"What's wrong?"

Seeing the solemn look on Iwasaki Mineryu's face, Lin Baicheng knew that what he was about to say was not a trivial matter.

"The company's current net assets have reached a scale of 100 billion yen. It is no longer a small company in the real estate industry. If the company wants to develop and grow, it must introduce more shareholders and have more powerful partners.

Talent can do it.”

Iwasaki Mineryu said very seriously and sincerely: "Lin Jun, based on the relationship between the two of us, I will tell you the truth. With my personal connections, I can still push the company upward, but the market value will be the highest."

If it doubles or triples, some families will definitely take a fancy to our company and want to invest in it."

"Our company is engaged in the real estate business. Not only does it acquire land, but we also have to cooperate with local families in project construction. Otherwise, it will not be difficult for people to block our company."

"Iwasaki-kun, what you said is not unreasonable."

Lin Baicheng nodded slightly, and then asked: "Is there anyone who wants to invest in our company now?"

"Not yet, Mr. Lin, don't think too much about it."

Iwasaki Mineryu waved his hand and said sincerely: "One of my elders told me this. I think what he said makes sense, so I mentioned this to Mr. Lin so that you can be mentally prepared. If Mr. Lin, you can't

If you accept other people's shares, then you just think I didn't say what I just said. It's just that if the company encounters difficulties, I'm afraid I won't be able to do anything about it, but I want to say this up front so as not to affect the two of us.

friendship."

"Don't worry, Mr. Iwasaki. I understand what you mean. If there is really strong capital that wants to invest in our company, and they contact you, you don't have to refuse. Just tell me first, and we will discuss it in detail at that time."

Lin Baicheng knew very well that companies like real estate companies, which relied heavily on local connections, could not avoid cooperating with more capital, so he didn't think there was anything wrong.

"Lin Jun, as long as you understand."

Iwasaki Mineryu breathed a sigh of relief, as long as Lin Baicheng didn't think that he wanted to burn the bridge.

Lin Baicheng spoke up and said: "But Mr. Iwasaki, even if you have the capital to invest in our company, we can't give up too many shares at the beginning. We have finally developed the company, and we can't let others pick the peaches. You think so?"

no?"

"That's natural!"

Iwasaki Mineryu nodded heavily: "And when the time comes, I will be able to raise the company's valuation a bit higher. If we want to give up the shares, it will be no problem, but the money must be in place."

Iwasaki Mineryu holds nearly half of the company's shares, and his interests are consistent with Lin Baicheng's. If it weren't for the fact that his power in the Iwasaki family is not very strong, and Bailong Commercial Club is a joint venture after all, and the other party to the joint venture is not

American companies, otherwise there wouldn’t be so much trouble.

To put it bluntly, if Lin Baicheng is replaced by Logan Rockefeller, even if Logan Rockefeller is only a branch of the Rockefeller family, his surname is enough to prevent Japanese conglomerate families from looking for trouble.

The United States is the father of Japan. If American capital does not cause trouble to the Japanese conglomerate families, the Japanese conglomerate families can already burn high incense.

Lin Baicheng is thinking about one thing, that is, if he has the capital to invest in Bailong Commercial Club next time, then he will sell part of the shares to the fund under his name.

There won't be too many shares.

That way, it won't be too conspicuous and it will be easier to run away before the real estate bubble bursts.

(End of chapter)