We are all reborn, who wants to be the richest man?
Chapter 188 Hedging
Luo Nianzhong, who returned to Hong Kong Island, did not choose to rest at home for a while to spend time with his precious daughter. He came to work at Far East Group the next morning.
Welch led the team to England for the second time, and he needed to come to the group to take charge.
The negotiations in England, like those in the beautiful country, cannot be concluded in a day or two.
Not to mention the early stage, after confirming the intention, both parties send people to the other party's company to investigate, which is not something that can be completed in a short time.
After Luo Nianzhong came to his office, Robert followed closely.
Luo Nianzhong, who was hanging up his coat, joked, "Hey, our God of Wealth, what is it that makes you so anxious?"
Robert smiled, asked for a cup of coffee with his secretary, and said, "I'm not a big boss like you, I'm born to be busy.
There is no other way, who wants to meet a boss who is always arrogant? You just leave everything to others and don’t do it yourself.”
"Yes, you all know that Zhou Papi is here? It's a pity that I don't understand it thoroughly enough.
It seems that I have to consider reducing your bonus and stock awards at the end of the year, so that it can be more in line with Zhou Papi's image."
Two months ago, Hong Kong Financial Magazine launched a salary ranking of global working emperors, that is, professional managers, after the Rich List.
As soon as this ranking came out, it can be said that Far East Group has once again become the company that all professional managers yearn for.
Last year's top five were all employees of Far East Group, thanks to Luo Nianzhong's large-scale share distribution of Honor Game's listing last year.
As a result, the salaries and bonuses of Welch, Robert, Jason, Chris, and Liang Jiadong exceeded ten million dollars last year.
Ranking sixth is Cary, the CEO of Big Blue who just stepped down this year, followed closely by his huge bonus of US$830 million.
Among the top 14, Far East Group occupies places, which can be said to be dazzling, and many of them are R&D personnel.
This allowed the world to see the importance Luo Nianzhong attaches to scientific researchers, and Welch was named the most successful CEO in the world.
Robert, the person with the second highest salary, quickly showed a bitter face when he heard Luo Nianzhong's teasing.
"Okay, maybe I expressed it wrong. I like to work, and a busy life is what I want."
Luo Nianzhong laughed and tapped him with his hand, "Tell me, my God of Wealth came to block me early in the morning. Is there anything important?"
When the conversation got down to business, Robert regained his serious expression and sat down solemnly to hand the document in his hand to Lai Luo Nianzhong.
"Our investment team has analyzed your proposal. It's a genius idea, but it won't last long. It will take us three to four years at most to implement it."
"What about profitability?" This is what Luo Nianzhong wants to know most.
It was originally an opportunistic act, and I expected it to continue forever.
"Between US$10 billion and US$25 billion."
Luo Nianzhong frowned, "Why is there such a big gap?"
"This starts with the suggestions you gave and why it is only operable in three to four years."
Before going to London, Luo Nianzhong found Robert and gave him a proposal for him to study, which was to trade the natural gas futures of the United States, a futures trading plan that guaranteed profits without losing money.
This was not discovered by Luo Nianzhong, but something he had heard of in his previous life.
Because he only had a rough idea, he told Robert this method and asked him to find someone to study it.
There is a rule for natural gas, that is, the supply is fixed but the demand fluctuates greatly.
Because the supply of natural gas requires pipelines, the annual supply is basically fixed without adding new pipelines and users.
However, demand changes in each season due to weather conditions, and winter fluctuates greatly compared with other seasons.
From November to March every year, the price of natural gas is generally the highest throughout the year due to the surge in demand.
In other months, natural gas demand is limited due to temperature, so natural gas prices are lowest at this time.
The plan given by Luo Nianzhong is to go long in winter when the price of natural gas is the highest and go short in spring and autumn.
In theory, this is a strategy that will make a lot of money no matter what.
If the production of natural gas increases, the supply of natural gas exceeds demand in the spring and autumn, and the price will fall more sharply than in the winter. In this way, the profits of short positions in spring and autumn will be greater than the losses of long positions in winter.
On the other hand, if an extreme event occurs and natural gas production cannot keep up, then the price increase in winter will definitely be greater than that in spring and autumn, so the long profits in winter will be greater than the short losses in spring and autumn.
In short, this strategy can make money no matter how the natural gas market fluctuates.
The only thing Luo Nianzhong didn't know was where this strategy died, so he asked Robert to study it.
Professional people do professional things, and the professionals in the investment department did not disappoint Luo Niazhong.
"There is nothing wrong with your theory, but there is no airtight wall in the world. In three or even two years at most, hedge funds around the world will follow our example.
At that time, the inflow of a large amount of funds will continue to widen the price difference between long and short positions, which is equivalent to giving us a spoiler.
The larger the price difference, the higher our profit will be, but the natural gas boat is so big, and it is certain that it will capsize when a group of elephants rush towards the boat.
So using hedge funds is the last money we make, and the profit from this money is hard to estimate, which is why the estimated profit is so large."
Luo Nianzhong nodded understandingly.
Yes, when a group of elephants are crowded on the boat, no one can guarantee that they will be the first to jump out of the boat before it capsizes, so there is no need to do anything in this matter, because the risk is too high .
This price difference is no longer affected by the supply of natural gas, but is entirely created by hedge funds using their money. When the contract is close to expiration, there will be a rush to hedge and close positions, and eventually it will evolve into a situation where whoever runs faster wins.
In addition, Far East Group plans to cheat those hedge funds, and no one knows when these people will get off the ship.
If a fund with a huge position escapes first, the entire natural gas futures market will collapse in an instant, and no one will benefit.
"You personally preside over this matter. Security and stability are the first priority. Whether it is one billion US dollars or two billion US dollars, it is a free lunch, isn't it?"
Robert smiled and nodded in agreement, "Yes, I like it for free, and at the same time, I salute you again for your genius idea."
Watching Robert pick up the coffee cup, Luo Nianzhong did the same thing, "I hope the toast will be with champagne, and 5% of the proceeds this time will be awarded to those who participated in this action."
"Then they will go crazy. I thank the boss for his generosity on their behalf."
5% is very little, but 20% of $5 billion is different.
The number of people doing hedging this time does not need to be too many, with a maximum of 20 people. This also means that these people can each receive millions of dollars in bonuses.
"Are we still looking for cooperation with Wall Street this time?"
“No, I have better partners”.
This cooperation is not about sharing benefits with others, but about natural gas futures.
At present, no institution has launched natural gas futures, and it cannot be said that there is no one, but they are all underground traders.
If you want to make a big profit, the market must be big, so you need to launch formal natural gas futures. Who Robert wants to cooperate with is to establish a natural gas futures index.
However, compared to Wall Street, Luo Nianzhong feels that rednecks are more suitable because they are bankers themselves and can know the inside story to make money in the capital market.
Historically, it was these guys who took the lead in establishing natural gas futures two years later, which also caused a series of sensational events, which can only be said to be ugly.
However, this proposal cannot be without cost, Luo Nianzhong plans to come in and get a piece of the pie.
After finalizing the matter, Robert took the cigar handed over by Luo Nianzhong, lit it and blew out a smoke ring.
"Let me tell you one more happy thing, I believe it will make me happier than making a billion dollars."
"Really? It actually makes me happier than making money? Tell me."
Luo Nianzhong is looking forward to it. Is there anything happier than making a billion dollars?
"The photolithography machine has made a major breakthrough, and it is estimated that the first test machine will be built soon."
Luo Nianzhong's eyes lit up, and the joy on his face could not be hidden at all. Laughing, "This actually excites me more than making a billion dollars. Why didn't anyone tell me?"
"They plan to tell you after the first photolithography machine is produced and give you a surprise, and President Welch also acquiesced."
Luo Nianzhong felt funny, "I'm the only one who knows about the co-authorship, right?"
After saying that, his expression turned weird. "So Chris knows about it too?"
Robert nodded and stood up with the lit cigar before taking two more puffs.
"This is your family's business. If I have anything else to do, I'll leave first." He didn't want to be used as a scapegoat.
Watching Robert leave, Luo Nianzhong was thinking about how to teach Chris a lesson.
Considering that European and American women are very tolerant, it was obviously not painful or itchy to use the method last night.
"What should I do? Can anyone give me some advice? It's really annoying."
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