Wukong Angel Investment Fund (wKIF) has successively ventured into Yahoo, Netscape Communications, Hotmail, AtI, 3dfx, and NVIDIA, all of which have been successfully listed. Today, the market value exceeds 6 billion US dollars. So far, none of them has failed. It has become famous and has become a risk. A benchmark for the investment industry.
eBay's successful listing today has become a business card for wKIF's successful venture capital investment.
The purpose of venture capital is to go public and cash out, and companies that can go public and cash out are good targets. Generally speaking, if 2 of 10 venture capital companies successfully go public, they will make money.
In his previous life, SoftBank Group failed to invest in many Internet companies, but Sun Zhengyi succeeded in investing in Alibaba, which helped him become the richest man in Japan and was known as "Asia's Buffett".
Hotmail company has been acquired by Microsoft. wKIF invested US$22 million and finally received US$180 million (after tax) in investment income.
Netscape Communications is now being targeted by AoL (America Online) and is conducting acquisition negotiations with the company's management. As the largest shareholder holding 28.5% of the shares, Wukong Angel Investment Fund will have an investment income of no less than US$1 billion.
At that time, wKIF's registered capital will be increased from US$200 million to US$1 billion, which will enhance wKIF's reputation and attract more high-tech projects to participate in venture capital.
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"Mr. Sun, Ltdm has been merged."
After completing the task of ringing the bell, Sun Jian and his party said goodbye and left. In the car, Yu Jianguo handed over a copy of the Washington Post. He was also surprised after reading the report, as were the main members of Long-Term Capital Management (Ltcm) Yu Jianguo and other people admire him, Ltcm is also one of the targets AtIc is chasing.
"Fortune" once published an article commenting that Long-term Capital Management has the highest Iq density in the world. Robert Merton, the Nobel Prize winner in economics and the father of financial modeling, and Myron Merton, the Nobel Prize winner in economics Scholes, David Mullins, former Vice Chairman of the Federal Reserve, William Krasker, Professor of Harvard Business School, Eric Rosenfeld, MIT Professor Chi-fu Huang, former vice president of the large Wall Street investment bank "Salomon Brothers", "the father of Wall Street debt arbitrage", John Meriwether.
The flagship fund of Long-Term Capital Management was officially established in February 1994, with a fundraising scale of US$1.25 billion. It was one of the largest hedge funds at the time. The subscription threshold was US$10 million, and the performance commission rate was as high as 25%, which was higher than that of ordinary hedge funds. 5 percentage points higher.
Merrill Lynch, Bear Stearns, Kuwait Investment Authority, Bank of Taiwan, etc. are all important customers of Long-Term Capital Management.
There was news in the market some time ago that Long-term Capital Management failed to short the Hong Kong Hang Seng Index futures August contract and suffered heavy losses in the chain reaction of bond decline caused by the default of Russian government bonds. But no one would have thought that this giant mountain would collapse in an instant. .
"Winning or losing does not matter!"
Sun Jian took the newspaper and said something meaningful.
I have read online articles about this in my previous life, and I am not surprised. A group of financial geniuses are self-righteous and very confident in the financial investment models and pricing formulas they designed. They carefully calculated the risk exposure of each transaction in the portfolio and believed that the risk Totally controllable!
If you rely on financial investment models and pricing formulas to invest, even if Russia does not default on its national debt, these financial lunatics will fall from the sky sooner or later.
Ten months after its establishment, Long-term Capital Management's return on investment reached 20%. In 1995, the return on investment was 43%. In 1996, the return on investment also reached 41%. The profit that year reached 2.1 billion US dollars, far from the That’s more than McDonald’s profits from selling 1 billion hamburgers a year worldwide.
By the end of 1997, the total size of Long-Term Capital Management's financial derivatives was close to one trillion U.S. dollars, exceeding China's GDP that year.
In order to obtain performance commissions, Long-Term Capital Management continued to increase the leverage ratio from 18 times to 28 times, which means that each point of fluctuation will generate a potential profit and loss of 40 million US dollars. In extreme cases, the leverage ratio reached an astonishing 100 times. Times!
The short bet on Xiangjiang Financial failed, and the default of Russian government bonds caused the bonds of the seven major industrial countries to plummet, causing Long-term Capital Management to suffer serious losses. As of the end of August, it had lost US$1.9 billion, and the portfolio retracement had reached 52%.
In September, Long-term Capital’s income continued to fall in a straight line, with a loss of US$530 million on September 10, a loss of US$120 million on the 11th, a loss of US$55 million on the 14th, a loss of US$87 million on the 15th, a loss of US$120 million on the 16th, and a loss of US$550 million on the 21st. Dollar……
The Asian financial crisis soon spread to countries such as Russia and Brazil.
The defeat was overwhelming. In just 150 days, Long-Term Capital Management's net asset value dropped by 90%, leaving only US$500 million. The company was losing money faster than it was making money. With no choice but to do so, Meriwether had no choice but to ask the Federal Reserve for help. .
On September 23, in order to prevent systemic risks, the Federal Reserve broke the principle of non-interference in the financial market, summoned the heads of major Wall Street financial institutions for the first time, and led the acquisition of Long-Term Capital Management, uniting 14 Wall Street banks with 36 Acquired 90% of the shares for US$100 million.
Long-term Capital Management is hanging on!
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On the first day of listing, eBay's intraday high reached $53.50 and closed at $47.18, an increase of 166.3% compared with the public offering price of $18. On the display screen of the Nasdaq Stock Market, eBay's increase ranked first among all listed companies. the front.
Chairman Pierre Omidyar holds 7 million shares of eBay, with a market value of 10,000 US dollars, making him a billionaire!
CTO Jeff Skoll holds 2 million shares with a market value of US$94.36 million, making him a billionaire during the session.
wKIF holds 6 million shares with a market value of US$10,000, and its investment has increased nearly 18 times.
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"Brother, Sister Bi!"
"Brother, Sister Bi!"
"Brother, Sister Bi!"
"Brother Sun, Sister Bi!"
At three o'clock in the afternoon on the 26th, Sun Jian and his entourage flew to Silicon Valley. After settling down at the Stanford Garden Hotel, they made an appointment with Sun Yuan, Liu Xin and Xiang Dongting to treat everyone to a feast at the hotel's Chinese restaurant. Via also called.
Before five o'clock, four beautiful girls came to Sun Jian and Bi Xiaoyun's room, and they suddenly became radiant. Although they were separated for less than a month, Sun Yuan, Liu Xin and Xiang Dongting met in a foreign country. Brother, my nose is still sore.
Sun Liang has not yet been weaned, and Xiang Dongping cannot come to the United States to work. She can only handle official business and chat with the three people on the Internet.
"Olivia, you are getting more and more beautiful as you grow!"
Every time Sun Jian comes to the United States, he will go to Silicon Valley to meet his three sisters, take them to practice shooting, have a big meal, buy clothes, relieve homesickness, and also call Olivia.
Olivia called Sun Jian and Brother Sun.
When he has time, Sun Jian will visit David and Maria with his sisters to thank them for taking care of their three sisters.
David and Maria, who are nearly eighty years old, are both retired professors at Stanford University. David's doctoral student Eric Smith now serves as the vice president of Stanford University.
