January 4th, Monday, New York time 9:17 am.
Era Vanguard's 13G filing documents were officially submitted through SEC's EDGAR System.
The core content of the declaration document is only a few lines--
Times Pioneer Capital holds approximately 4.9 million common shares of GameStop through multiple Offshore SPV, accounting for approximately 7.03% of the total share capital.
The source of funds is the fund's own funds. The purpose of holding shares is investment.
At 9:23, Bloomberg Terminal popped up the first alert, with only one sentence in the title -
"Era Vanguard disclosed that it holds 7% of GameStop shares."
At nine twenty-four, Reuters followed up.
At 9:25, CNBC printed a breaking news headline on live television.
At 9:26, the first repost appeared on WallStreetBets Forum, with the title - "Era Vanguard is here."
At nine-thirty, NASDAQ opens.
GME's pre-market trading began to move after 9:17--
As soon as the 13G filing documents were uploaded to EDGAR, those quantitative funds and Algorithmic Trading systems that stared at the SEC database all day long had already captured the keywords.
Opening Price directly jumped up and opened to 11.80 cents, which was nearly 30% higher than the closing price of 9.20 cents on Friday.
In the first minute after the market opened, Trading Volume exceeded 5 million shares.
In the second minute, it exceeded 10 million shares.
In the third minute, 20 million shares.
The K line on Time-sharing Chart goes straight up like a loosened spring, eleven dollars eight, twelve dollars, thirteen dollars, fourteen dollars--
Every integer barrier was broken down within a few seconds.
Zhao Chen is sitting at the conference table in Era Vanguard's office. The GME time-sharing line on Bloomberg Terminal in front of him is rising vertically.
Lin Shicheng stood next to him, holding a mobile phone in his hand, with push notifications one after another on the screen.
Shen Zhiyi walked over from the Legal Department's workstation, holding the just printed 13G declaration receipt in his hand.
"The application has been confirmed and submitted. The EDGAR confirmation number has been obtained.
The position is accurately controlled at 7.03%, which is nearly three points away from the red line of 9.99%, corresponding to approximately 2.08 million shares."
Shen Zhiyi Put the receipt on the table,
"The space of these three points is reserved for subsequent purchases.
The 7% disclosure is a signal that the market will see Era Vanguard's name and retail investors will regroup.
But Era Vanguard still has bullets and can continue to buy them after the disclosure.
If the stock price rises because retail investors follow suit, we can push the exposure higher to 9.99 percent."
Zhao Chen took the receipt, glanced at it, and put it on the table.
"Yes. 7% is not the end point, it is the starting point.
After disclosure, the market will know that Era Vanguard has opened a position on GME.
Retail investors will follow suit. Short Sellers will panic.
But Era Vanguard still has three points of space to continue buying.
If the stock price continues to rise after the disclosure, our Options Delta will inflate, and we may need to sell Common Stock to bring the exposure back.
But if the stock price goes sideways or pulls back slightly after the disclosure, that is Add Position's opportunity.
Lawyer Lin, the daily buying rhythm maintains 5% to 8% of the daily average Trading Volume, until the exposure reaches 9.92%.
Leave a buffer of zero point and seven points from the red line to cope with the passive expansion of Options Delta."
Lin Shicheng Quickly jot down key points in your notebook.
"Starting today, buy 5% to 8% of the daily average Trading Volume every day.
If the stock price continues to rise, the buying pace slows down;
If the stock price pulls back, the buying pace will accelerate.
The total exposure limit is 9.92%, leaving a buffer of 0.08 points from the 10% red line.
The execution of buys is decentralized through multiple Offshore SPV and is not concentrated in one channel."
In CNBC's live broadcast half an hour after the market opened, the host placed the 13G declaration documents and Citron's Short Selling report side by side on the screen.
The title of Citron Research Report on the left side of the screen is "Game Over",
On the 13G declaration document on the right side of the screen, Era Vanguard's name is circled in a red frame.
The host used an almost shouting tone--
"This comes less than two weeks after Citron published a Short Selling report claiming GameStop is worth five US Dollar,
Times Pioneer Capital disclosed that it holds 7% of GameStop's shares, becoming the company's second largest external shareholder.
The market is voting with its feet - GameStop's stock price rose more than 110 percent in the first half hour of today's opening, hitting 19 US Dollar.
Short Sellers is under unprecedented pressure."
The commentator of Bloomberg called up the historical position records of Era Vanguard on Tesla in the noon show.
The chart shows that Era Vanguard started to open a position when the stock price of Tesla fell to around 120 US Dollar in 2018.
Finally, in the Short Squeeze market in 2019, Short-Selling Alliance headed by Greenlight Capital and Citron were forced out, and the stock price rose from one hundred and seventy-eight US Dollar to more than three hundred US Dollar.
The commentator concluded -
"This is not the first time Era Vanguard has done this kind of thing. They did it to Short Squeeze on Tesla. At that time, Wall Street also thought that Tesla would go bankrupt.
Now they are here GME.Short Sellers should carefully read the position records of Era Vanguard on Tesla."
By the fireplace in the Explorers Club, White-Haired Old Man threw the 13G declaration document printout from Bloomberg Terminal on the coffee table.
Next to the document is the Short Selling report released by Citron last week. Left's signature is slightly stained with ink on the lower right corner of the page.
There were seven or eight people sitting in the room, each with a different expression--
Some people's faces were ashen, some kept refreshing data on their mobile phones, some people picked up and put down their coffee cups, and the bottom of the cup hit the coffee table with an anxious crunch.
"Seven point and three percent."
White-Haired Old Man read the number again in a low voice.
"Era Vanguard bought 4.9 million shares at around 9 to 20 yuan.
Our average Short Selling cost is twelve yuan and eighty cents.
Although they are still in a state of floating losses, the chips in their hands are locked, resulting in fewer tradable shares.
And -- they only disclosed seven percent.
There are nearly three points of space left in their hands, and they can continue to buy.
If we start closing the position now and buy back 70 million shares, the stock price will be pushed to more than 30 yuan.
If we don't close our position, if GME's stock price rises another ten yuan tomorrow, our insurance call notice will come down like an avalanche."