Lin Shicheng continues to report:
"Era Vanguard currently holds 16.6 million shares of Tesla, with a market value of approximately 5.86 billion US Dollar based on the current market price;
We hold 5.7 million shares of Apple, with a market value of approximately 1.14 billion US Dollar based on the current stock price. We will not move these two positions.
In addition, SpaceX holds 5.4% of the shares, which is also locked in for the long term.
Excluding the 300 million US Dollar that has been locked in participating in the SpaceX financing plan, the actual mobilizable cash on Era Vanguard's account is 1.86 billion US Dollar."
Zhao Chen nodded, although Lin Shicheng on the other end of the phone could not be seen.
1.86 billion US Dollar, plus the positions of Tesla and Apple, Era Vanguard's total exposure in the US Stocks market has approached nine billion US Dollar.
And for all this, no one outside knows that he is behind it--
The multi-layered legal firewall carefully built by Offshore Structure and Lin Shicheng has completely hidden the true background of Era Vanguard under the water.
"Lawyer Lin," Zhao Chen spoke, with a thoughtful determination in his tone.
"I plan to keep Two Hundred Million as mobile capital, and the remaining 1.68 billion will be used to build a position in Nvidia.
But I don't plan to use only the principal for this 1.688 billion - I want to use leverage."
There was silence on the other end of the phone for a moment.
"Zhao Zong How much do you plan to pay?" Lin Shicheng's voice became obviously darker.
"Twice. The principal is 1.68 billion, and another 3.36 billion is borrowed, for a total of just over 5 billion.
One time leverage is too conservative. At the position Nvidia, the safety margin is enough, so there is no need to save bullets."
"No."
Lin Shicheng said these two words hard and fast, like a conditioned reflex.
"Zhao Zong, this is too risky!"
Zhao Chen narrowed his eyes slightly.
He has known Lin Shicheng for so long, and it is rare to hear him speak in such a tone of voice without any room for maneuver.
"Zhao Zong, I must remind you something."
Lin Shicheng took a deep breath and slowed down his speaking speed, but the weight of each word did not decrease.
"Era Vanguard is no longer invisible in the US Stocks market."
"At the end of last year, when Bitcoin was sold from 17,000 US Dollar, any old fox in the market could sniff out something from the transaction track.
They don't know the exact details of Era Vanguard, but they have enough reasons to suspect--
There is an offshore fund with huge capital and extremely aggressive operating style that participated in that round of cryptocurrency strangulation."
Zhao Chen said nothing.
"Wall Street In this place, on the surface everyone is doing their own thing, but as long as one family exposes its weakness, everyone will come around like sharks smelling blood."
Lin Shicheng's voice had the unique coldness of a twenty-year-old lawyer.
"Double Leverage, five billion US Dollar positions, once the position is completed, the proportion of Era Vanguard's positions on Nvidia will be very conspicuous.
If you are targeted at that time - there is no need for conclusive evidence, as long as the market reaches a consensus that Era Vanguard is the mysterious fund Bitcoin that smashed the market at a high level, what do you think will happen?"
He asked himself and answered, "There will be funds focused on our cost line. It's not just one company, it's a group."
They will tacitly break through our Target Price, force us to make a margin call, and then eat up our chips at the most vulnerable moment.
In their eyes, the Double Leverage financing package is just a piece of fat hanging on the edge of a cliff."
The office was so quiet that only the low sound of Bloomberg Terminal's electricity was left.
Su Wantang stopped what he was doing and his eyes fell on Zhao Chen's profile.
Chen Xi also held his breath.
Zhao Chen was silent for ten seconds.
Of course he knew what Lin Shicheng said was right.
In his memory before his rebirth, he had seen such cases more than once -
A certain Hedge Fund was noticed by the market due to excessive leverage, and was eventually forced to close its position under the hunting of multiple funds, and several Ten-Billion-US-Dollar were wiped out.
Wall Street has no sympathy, only Hunter and prey.
But he is not willing to use only twice the leverage.
At the position of Nvidia, he knows exactly where it will rise in the future.
If you only buy with a principal of 1.86 billion, the final income will certainly be considerable, but if you can appropriately amplify the income within a safe range...
"Lawyer Lin," When Zhao Chen spoke again, his tone had softened from the previous sharpness.
"You're right. But not using leverage at all is too conservative."
Lin Shicheng didn't answer, waiting for him to continue.
"I'll propose a compromise."
Zhao Chen tapped his fingers on the table twice.
"The principal is 1.688 billion, and the leverage funds are also controlled at 1.68 billion."
"Double?"
"One to one. It's called 'one plus one' in the industry."
Zhao Chen said, "The total position is 3.36 billion US Dollar. This size is not surprising among Nvidia's single-day Trading Volume.
Even if it is targeted, the one-to-one leverage ratio is safe enough, and the stock price will have to fall by nearly 50% before a margin call is triggered.
Nvidia will drop another 50% from the current price--"
He paused.
"Impossible."
These two words were said indifferently, but in the ears of Chen Xi and Su Wantang, they were like two stones smashed into the water.
Lin Shicheng was silent for a few seconds, probably quickly calculating Risk Exposure.
"One to one." He finally repeated the number, with a hint of relief in his tone.
"The total position is 3.36 billion. Based on the stock price of 152 US Dollar, approximately 22 million shares can be purchased, accounting for about 3.7% of the total share capital of Nvidia.
This size is really not too eye-catching."
"Do you think you can accept it?"
"Acceptable." Lin Shicheng said,
"But there is one thing - the choice of financing parties must be diversified.
We cannot put all the leveraged funds of 1.688 billion on one institution.
I will split it into four or five different channels, each of which will not exceed 500 million.
In this way, even if someone wants to check our background, they will not be able to piece together a complete picture."
"Do as you say." Zhao Chen said without hesitation, "You are a lawyer, and risk control is at your discretion."
Lin Shicheng seemed to be relieved on the other end of the phone, and his tone softened:
"Zhao Zong, it's not that I'm timid. In fact, after living in this battlefield for twenty years, I have seen too many people die because of these six words, 'I am smarter than the market.'
If you can listen to your advice, I feel at ease."
Zhao Chen raised the corner of his mouth slightly.
"Go ahead. Below 90 billion, start taking action.
One-to-one leverage, diversified channels, and opening positions in batches. I'm waiting for your good news."
"Received."
Zhao Chen put down the microphone and turned around.
Su Wantang looked at him with a smile in his eyes.
"It's rare to see you being persuaded." She said softly.
"He's right."
Zhao Chen sat back on the sofa and picked up the tea cup.
"Those who have lived in this market for a long time have their own reasons for surviving.
I'm responsible for judging the direction, and he's responsible for controlling risks. We all perform our duties, and there's nothing to be ashamed of."
The most important security in this market is principal security.
As long as the principal is still there, there are plenty of opportunities.
He is very fortunate to have found such an experienced and dedicated lawyer as Lin Shicheng.
An employee who dares to veto his unreasonable plan is a blessing to him.