God-Given Investment Genius - God-Given Investment Genius chapter 7

7- Investment Company Vertical Movement

#7. Investment company Vertical Movement

Office of ‘Vertical Movement’, a foreign investment company located on Teheran-ro.

CEO Daniel Corner, who built his career at Citibank and Nomura Securities and chose to go to Korea due to a disagreement with his boss, was shocked to see a report posted by his only subordinate.

– Details of external fund management

– Mr. Kang Ji-hyuk.

– Total investment: 800,000,000 KRW

– Investment details: Daeho E&C short sale and KOSDAQ ETF Invers*x2

– Combined revenue: KRW 3,217,290,000

– Yield: 400%

– Investment period: 42 days

“Eugene, does this make sense?”

“I don’t know if it makes sense, but it seems a little unfair.”

“Should I just… close the fund and go to my hometown to find a gas station?”

“After I give you that severance pay, you’ll be tight on buying a gas station, right?”

“This rate of return… This is a foul play.”

Daniel Connor, who earned money for others at a financial company for nearly 10 years, jumped into the Korean market with $4 million in capital and earned $3 million in three years.

Based on the ability to accurately analyze the company’s financial statements and growth potential and identify trends through charts, it has recorded more than 20% annual profit for 3 years without a single loss.

As long as time passed, it seemed that Warren Buffett would not be envious.

“Eugene, you must have known this information in advance or something like that?”

“I think I caught the prosecution’s information in advance, but…”

“yes? It makes no sense otherwise.”

“The financial statements and asset status of Daeho Construction were also messed up. I never thought that a company with a market capitalization of 200 billion would go bankrupt in one blow just because I was being investigated by the prosecution…”

“That’s what I mean.”

Daniel shook his head while muttering, “It’s not fair.”

“Boss, don’t be too heartbroken. Are there only one or two people on the floor who exploded like that once and got cold? After all, it is important to record steady profits like a boss.”

“Is that so… is it?”

“sure.”

“Whoa… By the way, when did Mr. Kang Ji-hyeok come to visit? It looks like you’re supposed to come today…”

Yujin checked her watch and said.

“Perhaps… by now…”

– smart.

“Looks like you’ve arrived.”

***

When Daniel meets Jihyeok for the second time, he can’t help but be surprised once again.

Usually, a person who has recorded a huge profit rate is a little arrogant or arrogant, but Ji-hyeok was just as calm as when he first saw him.

“Congratulations. Mr Kang. You have recorded phenomenal returns.”

“Thank you, Mr Connor. however······.”

Suddenly, Jihyeok’s eyes became extremely sharp.

“I told you to go all-in on the short selling of Daeho Engineering & Construction, but why did you diversify your funds into KOSDAQ Inverse?”

“That… that… there was also a shortage of short selling balance, and a device was put in place to make up for losses in short selling.”

“So… you mean hedging with a double inverse.”

Daniel nodded quickly.

“If you normally bet on short sales, don’t you hedge with spot or covered call ETFs?”

“That… that’s right.”

As a result, it was not a bad investment, but Daniel’s strategy was completely different from the standard market strategy.

Jihyuk frowned slightly and said.

“I think this part needs a little explanation.”

At that time, Eugene, who was watching from the side, stepped out.

“Even if the stock price of Daeho Construction did not fall, the overall economic decline was expected due to the real estate market downturn. I thought the KOSDAQ was the first to react to it, so the strategy was that even if Mr. Kang Ji-hyeok’s short selling failed, he would be able to make up for it with a multiplier.”

Jihyeok smiled and said.

“But as a result, I suffered a loss in the rate of return.”

“Hey… Mr. Kang Ji-hyeok. Our vertical movement does not originally receive external funding. The representative invested in the investment at the request of an acquaintance, isn’t it too much? I did that because I was an acquaintance of the CEO, so I cared more…”

“okay.”

“Yes, it is. So the accusations are…”

“thank you.”

Ji-hyeok’s sudden change of attitude made Daniel and Yu-jin look absurd.

“Looking at the expressions on the two of them, it seems that they genuinely worried about me.”

Daniel nodded and said.

“you’re right. Samuel asked me to be very careful, and even though 800 million seems like a small amount of money, it can be a huge amount for someone.”

Jihyeok nodded his head slowly while looking at Daniel’s contemplation.

Originally, he had such a personality.

From noble mtl dot com.

Although he has a personality that seeks stability, he has a strong sense of responsibility and often clashes with his boss.

The personality of Eugene, who worked with me, was not very different.

Jihyeok did not want to miss the good relationship he met unexpectedly.

“In that sense, I will pay 10% of the proceeds as management fees.”

Daniel asked in surprise.

“Is that true?”

“Did you originally contract for 2%?”

“That’s right.”

“I think I have to give this much to continue trading with a trustworthy fund manager like you two. Can I continue please? Of course, if you think I made the wrong decision, it doesn’t matter if you do it like this time. Instead, there must be an accurate basis.”

Daniel answered quickly, as if there was no need to worry.

“I’ll do it.”

“great. Then, please withdraw 1 billion to my account, and invest the rest in the top construction stocks. If there is an ETF that only binds construction stocks, it would be nice to invest in it.”

Daniel jumped up and said.

“That’s not okay, Mr. Kang. You said earlier that you would definitely take our advice, right? There are unsold pre-sales nationwide, but investing in construction stocks? I’d rather go to an inverse fund…”

Jihyuk said in a calm voice.

“Mr. Connor, things have changed.”

“yes? What circumstances…”

“Before Daeho Construction went bankrupt, the Korean government might not have taken any action. However, a company with a market capitalization of 200 billion was blown away. If you look at the Korean stock market as a whole, it doesn’t seem like a big deal, but if you limit it to the construction industry, it’s no different than being hit with a strong punch.”

“You mean you’re going to leave the government.”

“Whether it is real estate policy or financial policy, there will be unconventional action.”

“It makes sense, but…”

“I am talking about the past 20 years by analyzing real estate market trends and Korean government policies. If you don’t believe me, you can check it out for yourself and proceed.”

Only then did Daniel nod and said.

“All right. Still, we will conduct a separate analysis on our side as well.”

“Good. Then, I wish you well in the future.”

Jihyeok, who liked the last answer even more, made up his mind to give a big deal to Samuel, who introduced them.

***

After a while, there was a strange tension in the office of Vertical Movement, where Ji-hyeok left.

“Eugene, I think I was wrong.”

“What do you mean?”

“I thought he was a gambler looking for a win, but he might be a great match.”

“What else? I only got it right once. And the boss still has a lot more money, right?”

“huh? Not yet? So you’re saying it won’t happen in the future?”

“Well, if the insight Kang Ji-hyeok showed you is real, won’t you become very rich soon?”

Daniel shook his head and let out a deep sigh.

“Damn… I feel more unfair because I think those words will become reality.”

“Ugh, Boss. No, how did you graduate from the Wharton School with that hair?”

“Don’t scratch too much, Eugene. Because I’m going to be more depressed.”

“Boss, listen carefully. This is your chance. If Mr. Kang is a real man, you can make huge profits just by following his investment strategy.”

“Ha, but that’s stealing.”

“You can ask Kang Ji-hyeok about it. I don’t think I would say no.”

“Really?”

While Daniel was hesitant, Yujin took out her phone and called Jihyeok.

***

[Cheongdam Station]

“Yes, do it. Instead, if Vertical Movement makes a profit with the same position as mine, you should waive the management fee I would pay.”

After finishing the call, Jihyeok lightly bowed his head toward the two rich people in front of him.

“They did what I said.”

“Heh heh heh, thank you, thank you. If it wasn’t for you, my son would have been very upset.”

President Nan-cheol Na, who had expressed his gratitude several times over the phone, showed his gratitude with his son.

“you’re welcome. Anyway, it was the elder and the son who made the choice.”

At that time, Ji Ji-seop, who was next to him, lowered his head and said.

“Thank you, Master. My political life was almost over before it even started, but thanks to that, I was saved.”

It was Ji Ji-seop, whose attitude had changed 180 degrees from the first time I saw him.

“I also got such a nice building thanks to my father, and I didn’t spend a single penny on advertising and got guests, so isn’t it mutual aid?”

said the president, Jin Cheol.

“Isn’t that because your skills are so outstanding? Now I’m ready to believe you even if you’re a Buddha, uh huh huh.”

“Even though he has excellent skills, the help of the elders was great to get a seat so quickly. I heard that the secretary of the Ministry of Construction and Transportation who came a while ago was also introduced by an elderly person.”

“Uh, it looks like that friend came to visit. He’s the guy who went to the same college as my son. He said I helped him take a leave of absence because he didn’t have tuition.”

Then Ji Ji-seob stepped out.

“Dad, just a little bit. Didn’t your father take responsibility for all of Dae-su’s friend’s study of poetry?”

“I heard it was a few pennies. Don’t look down on him for nothing.”

Ji-seop Ji turned his head and said to Ji-hyeok.

“Guru, that friend refused to go to the Ministry of Finance and Economy to help his father and was assigned to the Ministry of Construction and Transportation.”

It seemed like he was trying to repay the favor.

He must have wanted to be a little help in the real estate business of Jinan-cheol.

“You did a good job. Even so, the elderly are not the ones to receive illegal help.”

“Heh heh, of course not. Shouldn’t we ruin our son’s future by just trying to earn a few extra bucks?”

Jihyeok suddenly remembered his adoptive parents.

Although they were blunt on the outside like CEO Jin-cheol, those who passionately supported and supported Ji-hyeok more than anyone else.

The people who willingly gave Ji-hyeok his lifelong retirement fund when he was having a hard time.

When I was young, I sometimes thought, ‘Isn’t that kind of a fake?’, ‘Isn’t it just that they wanted a show window family to show off to people around them?’

However, when I saw the president of Jin-cheol and the rich man Ji-seop Ji in front of me, I realized how foolish my suspicions were.

While Ji-hyeok was lost in thought for a moment, Ji’s father and son got up from their seats.

“We’ll be on our way.”

“Ah… I thought about something else for a while. Are you leaving already?”

“Shouldn’t we be quick to avoid our seats in order to receive guests? hahahaha.”

“It’s because the reservations are a little behind because I was doing some business in the morning. There aren’t that many of them normally.”

“If you have supernatural powers, you will soon hear that you are the best in the country, so don’t be rude.”

“hahahaha, I see. Then take a look.”

***

In fact, Cheongdam Station Spell Center had so many customers that it was almost a jackpot.

Thanks to the customers introduced by the president, Nam-cheol, who introduced them bit by bit, the situation was already full with reservations two months later.

But for some reason, Jihyeok didn’t like the current situation.

According to Mansin Jang Sun-deok, the person who would become a nobleman to Ji-hyeok would be the owner of a dragon and a phoenix, but it seemed that his reputation had not yet reached such great people.

Jihyuk let out a deep sigh and said.

“Should I do an advertisement…”