Outside Era Vanguard New York Office's Floor-to-Ceiling Window, the skyline of Manhattan shines in the afternoon sun.
Zhao Chen stood in front of the window, holding Su Wantang in his hand a Pu'er that had just been filled with hot water.
My eyes fell on the Hudson River, and there were several tugboats on the water slowly turning.
Chen Xi is sitting at the conference table, and the transaction data of NASDAQ is scrolling on the laptop screen--
The cumulative increase of Tesla this week and the net replenishment scale of Short Sellers seats are still being refreshed.
Zhang Qingxue was leaning on the armrest of the sofa, holding a printed copy of Bloomberg's special analysis in his hand.
Su Wantang put the teapot back on the coffee table and sat down on the sofa next to Zhao Chen.
Shen Zhiyi is also here today, it is her last day of internship at Era Vanguard Legal Department,
She will fly back to Shanghai tomorrow to continue her work at the law firm.
At this moment, she was sitting on the single sofa in the corner, with a draft of Schedule 13D Amendment Filing of Nvidia spread out on her knees.
But his eyes did not fall on the document, but on the profile of Zhao Chen.
Chen Xi marked the last few seats of Short Sellers in the transaction data and showed them to Zhao Chen.
The data on the screen clearly shows that his fund's Short Position on Tesla has shrunk significantly from its peak to almost zero.
The final confirmation time for position closing will be after the market closes on July 29.
This means that the huge sum of Short Sellers, which has been laid out since the end of last year and increased in February this year,
After eight months of hard work, it ended with significant losses.
Zhao Chen glanced at it but said nothing.
In the past few days, he has been looking at the transaction details, watching those familiar Short Sellers seats changing from selling to Buying Pressure one by one.
Chen Xi turned up the volume on the TV again, and CNBC was broadcasting a special analysis of the Short Sellers collapse.
Tesla bounced from 178 US Dollar to nearly 300 US Dollar, K-line Chart appeared alternately on the screen.
Carson Bullock said in the interview that "we underestimated Era Vanguard's financial transparency", as well as several sets of Hedge Fund net loss estimates.
One prime brokerage executive, who was quoted anonymously, said in the report:
"We have several customers who lost more than half a year's income on Tesla.
One of the established funds has decided to close and return all external funds by the end of August."
Shen Zhiyi closed the 13D draft on his knees and asked softly:
"How serious are their losses?"
"It is impossible to accurately calculate the specific figures.
These Hedge Fund are all hidden behind vague subjects such as 'large transaction losses' and passed over in one stroke."
Chen Xi recommended Bloomberg's special analysis to Shen Zhiyi,
"But a rough estimate is that from May to July alone, the total losses of the companies that were Forced Liquidation exceeded 5 billion US Dollar.
This does not include those positions that are still holding on but have large floating losses on their books."
"Five billion US Dollar."
Shen Zhiyi repeated the number.
She works in non-litigation practice at a law firm and has seen many huge transactions.
But the loss of five billion US Dollar was still a concept that she needed to pause for a few seconds to digest.
"Did they Short Selling Tesla really believe that Tesla would go bankrupt, or did they just want to take advantage of it?"
"Both."
Zhao Chen finally spoke. He turned around from the window, walked back to the conference table and sat down.
"Muddy Waters really believes that there is something wrong with Fundamentals of Tesla. Bullock Short Selling is never pure speculation.
Citron is another kind - Left is a trader. When he sees an opportunity to make money, he pounces on it. When the wind direction changes, he is the first to run.
But the others are different from them. His most fatal mistake was not his misjudgment, but his failure to stop losses in time after making the misjudgment.
Twice - once at 250 and once at 200 - they had two chances to walk away with a handsome profit.
But they didn't. They didn't believe that I was more qualified than them to be on the other side of the table."
"Arrogance."
Zhang Qingxue closed the legal documents, his voice was low but every word was filled with a lawyer's unique calmness.
"Yes."
Zhao Chen picked up the teacup and took a sip.
"Every time they tried to smash us through Liquidation Line, we swallowed their cheapest chips at the bottom.
By the time they want to close their positions, there is no longer enough liquidity for them to leave safely.
In this kind of stampede closing, the loss of Short Sellers is not linear--
The person who runs first loses less, the person who runs later loses more, and the person who runs last pays for everyone.
Among the last batch of people to close their positions, he paid the final payment for those small funds that quietly started to cut their stocks and leave the market in May."
Shen Zhiyi reminds me of a question from a legal perspective.
She reopened the closed 13D draft and glanced at the sidebar mark:
"Until the SEC investigation is concluded, all Era Vanguard accounts are restricted from new cross-border fund transfers.
You told me at the time that if the investigation was delayed until the end of the year, we would never be able to increase our holdings on a large scale like in May.
The investigation is now closed, but we have indeed not moved our positions again."
"No need to move anymore."
Zhao Chen Put the teacup down,
"I said in May, 26 million shares of Tesla and more than 94 million shares of Nvidia. The bottom positions of these two lines are thick enough.
The role of Era Vanguard on Tesla has been transferred from Tactical Allocation to Strategic Allocation since May--
We don't increase our holdings, we don't reduce our holdings, and we don't do swings. We are long-term shareholders, not here for short-term speculation."
Chen Xi typed a few times on the keyboard and called up the latest position summary table of Era Vanguard. The numbers on the screen looked particularly clear in the afternoon light--
Tesla holds approximately 26 million shares, accounting for approximately 14.8% of the total share capital;
Nvidia has approximately 94.1 million shares, accounting for approximately 15.5% of the total share capital.
"Long-term Strategic Allocation, no take-profit line" is marked next to these two sets of numbers.
"Lawyer Lin Schedule 13D Amendment Filing submitted last week has clearly written this in."
Chen Xi said,
"The wording is--'Era Vanguard does not seek to change the company Control, and does not seek Board of Directors Seat.
This increase in holdings has been completed and will be converted to Long-Term Holding Strategy.'
This is probably the quietest Major Shareholder statement the SEC has ever seen."
"Quietness does not mean lack of strength."
Zhang Qingxue Turn to the next page of the legal memorandum,
"The stock price performance of Henglong this morning also confirms this point."
The business update announcement previously sent by Liu Mingyu has been officially disclosed.
The announcement clearly explains the configuration logic of Henglong Capital in the New Energy industry chain--
It's not chasing the rise, it's long-term allocation; it's not speculation, it's judgment of industry trends.
This is exactly the style Zhao Chen has always adhered to.
She went on to add:
"Tesla's Short Sellers stampede has pushed up the valuation of the entire global New Energy car industry chain.
Domestic institutional investors increased their allocations to the New Energy sector this morning, and Bidiya subsequently jumped short and opened higher.
The stock price of Henglong simultaneously exceeded 120 Hong Kong Dollar, and the market value stood firmly at 67 billion Hong Kong Dollar."
Chen Xi took over and settled the matter,
"The cost of the Bidiya position we hold is approximately 42.68 yuan.
The stock price of Bidiya has climbed to about 56 yuan, and this part of the position has provided continued floating profit support for the net assets of Henglong.
At the same time, other positions under Henglong also continued their steady recovery this week."
"So Short Sellers did us both a favor."
Zhao Chen leaned on the back of the sofa and tapped his fingers on the armrest twice.
"First, they gave us the cheapest chips near 178 US Dollar.
Second, they used eight months of hunting to conduct the best stress test for Era Vanguard in the global capital market.
Now even the commentators of Bloomberg are saying - 'Era Vanguard is a fund that was bitten by Short Sellers but was not bitten to death.
The credit of this kind of fund deserves more attention.'"