In mid-September, the heat in New York finally begins to subside.
Lin Shicheng is sitting at Era Vanguard New York Office's desk,
Golden streaks were cast on the report cover in front of him.
The title on the cover has only one line - "Era Vanguard 2019 Investment Summary Report (as of September 2019)".
He has been drafting this report since Era Vanguard submitted his first 13G declaration on Nvidia last November.
The actual writing came at the end of August, after all the lock-up documents were signed.
He compiled the timeline of all major transactions since the establishment of Era Vanguard, position changes,
Fund Flow and the compliance declaration nodes were all sorted out, checked one by one, and filed item by item.
Today, the report finally lay on his desk in its entirety, with about thirty pages of text and four attachments.
He turned to the first page of the report, and the table of contents clearly listed five parts:
1. Overall asset overview;
2. Nvidia position review and lock-up decision;
3. Tesla position review and Strategic Allocation;
4. Funding sources and compliance framework;
5. Risk Exposure evaluation and follow-up suggestions.
Each title is a wording that he has repeatedly considered over the past ten months. It is neither too conservative nor has any unnecessary modifications.
He no longer needs to look up the table for the core data in the "Overall Asset Profile" section.
As of September 2019, Era Vanguard holds approximately 94.1 million shares of Nvidia, accounting for approximately 15.5% of the total share capital.
The comprehensive weighted cost is about 145.2 US Dollar, and the current stock price is about 180 US Dollar.
The market value of the position is approximately 16.9 billion US Dollar, the floating profit is approximately 3.3 billion US Dollar, and the floating profit rate is approximately 24%.
Holds approximately 26 million shares of Tesla, accounting for approximately 14.8% of the total share capital.
The cumulative average cost is about 256.7 US Dollar, and the current stock price is about 300 US Dollar.
The market value of the position is about 7.8 billion US Dollar, the floating profit is about 1.1 billion US Dollar, and the floating profit rate is about 17%.
It holds about 5.4% of SpaceX's equity, and its latest valuation is about 30.5 billion US Dollar, corresponding to a market value of about 1.65 billion US Dollar.
The total market value of the three core positions is approximately 26.35 billion US Dollar, plus the book Cash Reserves is approximately 750 million US Dollar.
Era Vanguard The total assets are approximately 27.1 billion US Dollar.
From the opening of the position in November last year to now, Era Vanguard has gained
Completed the growth of asset size from zero to approximately 27.1 billion US Dollar,
Excluding the approximately 7.94 billion US Dollar seed capital carried forward from Bitcoin profits, the net increase in assets is approximately 19.2 billion US Dollar.
He marked an extra line of explanation in the comment column of the report--
Henglong's stock pledge financing Principal and Interest has been fully repaid in advance through the realization of part of Nvidia's floating profits this summer.
All 360 million shares of Henglong have been released from pledge, and Era Vanguard currently does not have any external pledge burden.
He turned to the second part of the report--Nvidia.
This chapter took him the longest to write, because what he wanted to write was not transaction records.
It is a complete decision-making chain from Tactical Allocation to Strategic Allocation.
He reviewed in detail every key node of Era Vanguard's counter-trend position building after Nvidia Financial Report plummeted in November 2018.
From the first batch of 3.36 billion US Dollar, it entered the market in the panic zone below the market value of 90 billion US Dollar.
To Tesla's equity pledge financing of 6 billion, US Dollar made a large-scale investment during the liquidation window period of SoftBank.
In April this year, after the Henglong pledge financing was received, it continued to Add Position to approximately 94.1 million shares.
He specifically marked the lock-up decision made by Zhao Chen after the Nvidia Q2 Financial Report phone conference on August 15, and attached the original words of Zhao Chen--
"Unless Huang Renxun leaves Nvidia, or AI proves to be a bubble, one share of these stocks will not be sold."
At the end of the chapter he writes:
"Nvidia position has been classified from the active management category to the permanent core position category.
The two conditions that trigger the reduction - major changes in management or systemic risks in the industry - are not within the current foreseeable risk category."
The structure of the Tesla part is symmetrical to that of Nvidia, but the core logic is different.
He started writing from the time he opened the position Tesla in 2018,
A detailed review of Era Vanguard's operations in the Options market during last year's privatization incident,
The life and death showdown when the stock price approached 178 US Dollar Liquidation Line in May this year,
And from May to June, Era Vanguard took over the funds at the bottom, supplemented the pledge, and finally pushed Liquidation Threshold to 148 US Dollar.
He devoted a whole page in this chapter to analyzing the node that was mentioned repeatedly by countless people later -
On May 9, the stock price fell to 178.48 US Dollar, which was less than half US Dollar from Liquidation Line.
Era Vanguard invested about 726 million US Dollar to buy 4 million shares on that day, with an average price of about 181.5 US Dollar, which brought the stock price back from the edge of the cliff.
He added a note next to it:
"Looking back afterwards, this was the turning point for the entire Short-Seller Hunt.
Before that, Era Vanguard was passively defensive; after that, the attack and defense changed."
He also pointed out that in August Era Vanguard submitted Schedule 13D Amendment Filing,
Officially announced that it will stop increasing its holdings of Tesla and transfer its holdings to permanent Strategic Allocation.
It marks the complete transition of the Tesla position from Tactical Allocation to Strategic Allocation.
"Unlike Nvidia, the competitive landscape of the New Energy track is still evolving.
The research resource allocation of Tesla positions will focus more on industry chain tracking and dynamic assessment of the competitive landscape.
But the position itself also enters the lock-up period."
The fourth part is the compliance framework.
Lin Shicheng spent five full pages sorting through all the SEC filings Era Vanguard filed in the past ten months--
From the first 13G to the latest 13D amendment, from the HSR antitrust review to the responses to two SEC inquiry letters.
He summarized Era Vanguard's compliance system in three sentences:
All sources of funds can be traced back to overseas investment income from the actual controller's personal legal income;
All transaction records are accompanied by exchange statements and bank statements;
All application documents are reviewed item by item by an independent legal team.
If any of these three sentences is proven false, it will shake the compliance foundation of Era Vanguard.
But so far, none of them have been proven false.
He turned to the last page of the report - Risk Exposure Assessment and Follow-up Recommendations.
He wrote this part most carefully and revised it several times.
The asset concentration of Era Vanguard is extremely high - the two tickets Nvidia and Tesla together account for the vast majority of the total assets.
A black swan event for any company will have a significant impact on the net value of the fund.
In the risk warning section, he suggested that without breaking the lock-up commitment,
Gradually allocate the annual dividend income of Nvidia and Tesla to multiple tracks to avoid further concentration of incremental funds in the future.
But he took the initiative to add another sentence in the suggestion section:
"The above risks have been fully recognized and accepted by the actual controller.
Era Vanguard's investment strategy is always based on long-term judgment of industry trends rather than short-term fluctuations."
He signed his name and date on the last page of the report,
Then he put the report into a dark gray folder and took it into Suite of Zhao Chen.
Zhao Chen took it and flipped through a few pages. His eyes paused at the line of total asset size, and then continued to flip down.
He looked very carefully, occasionally pausing on a certain number with his finger, but did not ask any questions.
After turning the last page, he closed the report, placed it on the coffee table, drank the cool Pu'er, and put down the cup.
"After this report is issued, all operations of Era Vanguard from November last year to now will be sealed.
When people look back in the future, they will know how we took every step."
He pressed his fingers lightly on the cover of the report, then leaned back on the sofa, his eyes falling on the water rippled by the autumn wind outside the window Hudson River.