The day after Lin Shicheng submitted HSR Filing, the news got through to Wall Street.
An announcement popped up on the terminal that was not Bloomberg - HSR Filing does not need to be disclosed to the world in EDGAR System like 13D.
The news leaked out from the administrative channel of Federal Trade Commission.
On the day when the FTC reviewers distributed the application materials to relevant departments, at least three intermediate people handled the document.
Someone took a look at the name of the applicant, remembered the spelling of "Era Vanguard", and casually mentioned it when having lunch with a colleague of Hedge Fund.
The man put down his fork, took out his mobile phone, and sent an encrypted text message to his Trading Desk.
Within 48 hours, the news that Era Vanguard submitted HSR plan to increase its holdings in Nvidia to 15%-20% is no longer a secret among Wall Street's main Hedge Fund and Trading Desk.
The first to piece together a complete picture were a group of old enemies who were harvested by Zhao Chen when Bitcoin was at the top.
They have determined that Era Vanguard is the person who destroyed Bitcoin.
In December 2017, when Bitcoin surged upward from seventeen thousand US Dollar,
The 400,000 Zhao Chen Bitcoin stabbed into the heart of the cryptocurrency bulls like a knife, disrupting the pace of the bulls' liquidation.
Among that wave of people, some were from Midtown Manhattan and Hedge Fund,
Some have secretive commodity trading backgrounds on the East Coast,
Some are simply the financial backers behind crypto mining farms.
They met once in New York's Explorers Club--
I chose this place not because I was interested in the adventure itself, but because it was a private enough place for conversation for the old guys who had climbed Himalayas.
Several rock samples collected from Antarctica were hung on the wall, a replica Shackleton sled was displayed in the glass cabinet, and the fire crackled in the fireplace.
Several leather chairs were gathered in front of the fireplace, and the seat cushions had been dented by countless old men.
Everyone here has noticed that Era Vanguard has a fatal bug in his hand.
"Have you noticed?"
The gray-haired man sitting on the left side of the fireplace spoke,
"They submitted an HSR."
The reaction of those present was achieved in a matter of seconds:
Era Vanguard will continue to buy on Nvidia.
HSR means a 30-day legal waiting period. You cannot increase your holdings on Secondary Market or sell one share of Nvidia within 30 days.
"So the position of Nvidia is locked."
The other person changed the cigar from his left hand to his right hand and blew out a strong puff of smoke without any unnecessary modifications in his tone.
"If you want to snipe Era Vanguard, Nvidia is not the target."
The gray-haired man opened a document - it was data pieced together after internal cross-verification by several investment banks PB Departments -
The voice was not high but every word was like nails hammering into the air.
"Tesla. 16.6 million shares. Four batches of pledges, Citigroup, Morgan Stanley, Credit Suisse, plus one Private Bank.
Pledge Ratio 50%, a total of three billion US Dollar was raised.
The three billion were doubled in leverage and all poured into Nvidia. This is the source of ammunition for Era Vanguard."
He threw the documents on the coffee table.
"And that's not all. I checked their pledge records. All 16.6 million shares have been pledged. Not a single card is left."
After these words were spoken, the fire in the fireplace crackled and no one answered.
All pledges mean that Era Vanguard has no extra stocks on Tesla that can be added as collateral.
If the stock price of Tesla drops and the market value of the collateral shrinks, the investment bank will not hesitate to issue a callback notice.
As for the cash of Era Vanguard, according to the information provided by all parties in the puzzle - only the stocks of Apple and SpaceX are not pledged.
A clear sniper path emerged:
They do not need to spend a penny of Short Selling cost on Nvidia, nor do they need to face the long resistance of Nvidia retail investors and institutions.
As long as they Short Selling Tesla concentrate their firepower and smash through the safety cushion of the pledge, they can drag Era Vanguard into the quagmire of covering positions.
"This is a perfect sniping window."
The gray-haired man leaned on the back of the chair and crossed his fingers.
"Their cash is locked in Nvidia and HSR review, and the Nvidia position is locked in Section 16(b).
They can't sell or buy, they can only watch us do it on Tesla.
As long as the stock price of Tesla drops, Era Vanguard will be forced to cover its position.
If they can't make up for it, the collateral will be disposed of by the investment bank. And we--we don't need to touch a share of Nvidia."
This is not the first time Wall Street has hunted an injured offshore fund.
But this time the prey was bigger than ever before.
Among those Trading Room of Manhattan, no one openly admits their Short Selling motivations, but everyone knows--
It's time to pay off the old debt Era Vanguard had with Bitcoin.
On January 16, Morgan Stanley informally consulted the FTC on the progress of the HSR review, ostensibly just to routinely confirm the filing status of a customer.
But the HSR review has a less noticeable detail:
After receiving the declaration, the FTC will publish a brief announcement on Federal Register, listing the name of the declarer and target company.
Although this announcement does not disclose the specific shareholding ratio and shareholding increase target, it is enough for anyone who is interested to confirm Era Vanguard's intentions.
In other words, on Federal Register, the intention of Era Vanguard has been confirmed.
On January 18, Federal Register released the HSR Filing announcement as scheduled.
The two names "Times Pioneer Capital" and "Nvidia Company" are listed side by side in a line of typeface, and Jingjing is lying on the business page of Federal Register.
To the average person, this is just one announcement among thousands;
Even among Wall Street's most astute traders, there are very few people who stare at Federal Register looking for trading clues--
Because the HSR announcement does not disclose the quantity, it is impossible to determine whether it is a 5% or 15% increase in holdings based on just two lines of type.
But when this line of type is read together with the "agency secret report" from a few days ago, it becomes the last piece of evidence that overwhelms the balance:
Era Vanguard was locked by the agency within 48 hours after submitting the HSR. This line of typeface Federal Register,
It's just a secret report that has been circulated throughout Wall Street and stamped with the official seal of the government.
At the same time, Tesla's fourth-quarter delivery volume announced on January 2 was slightly lower than expected, and the stock price showed signs of weakening slightly--
This provides a more alluring background music for the vultures.
Like sharks smelling blood, they gathered in Manhattan and Greenwich's Trading Room.
The target of their position is Tesla deep virtual value Put Option--
The cost is low and the leverage is high. Once Tesla drops sharply, the return will be exponential.
Everything is ready, just waiting for Tesla to reveal its flaw.