Chapter 916: Chapter 375: Secretary_2
So it’s not that Gu Yong and Gao Diaomao’s intelligence is at fault, they’re just unlucky, targeted by a glitch...
...
"President Han, this is the final straw!"
Jiao Fangyan was very excited. As soon as Han Lie put down the report, he immediately spoke.
Indeed, this was the last straw that broke the camel’s back.
Han Lie watched the market slide inexorably downward and quickly made a decision, "Observe in the morning, and start building positions in the afternoon if it stabilizes!"
The total fund of 7.5 billion can’t possibly all be invested below 2000 points; that’s unrealistic.
Han Lie didn’t need to pursue such extremes either.
"What do we do first?"
"Sky One Fund, buy half with ETF index funds, then select some constituent stocks to establish a base position. As for the small and mid-cap stocks, let them fluctuate first."
After giving clear instructions, Han Lie didn’t need to worry about anything else.
Jiao Fangyan’s trading skills were quite competent, and even though the current capital was already massive, she still handled it with ease.
In the afternoon, the index successfully broke below the 2000 point barrier, reaching a low of 1996.88 points and closing at 2000.92 points.
What Han Lie didn’t know was that these two points were both slightly higher than the same period in history.
His two funds were already a formidable force capable of influencing the market.
The total turnover in Shanghai for the day was only 95 billion. Even though Jiao Fangyan steadily injected less than 1 billion, it forever changed history.
The next day, Tuesday, the index fluctuated narrowly, dipping to 1988 points, closing at 2002 points, with trading continuing to shrink to 76 billion in Shanghai.
On the third day, Wednesday, the index fluctuated widely, surging up and plunging down, peaking at 2013 points and bottoming at 1975 points, with trading volumes slightly recovering to 80 billion.
In three days, Han Lie had built a base position of 4.5 billion.
It might not seem very efficient, but these were cheap shares acquired under the premise of minimally impacting stock movements.
Next, unless any major unforeseen events occurred, this portion of the base position would remain stable.
Including—
Four banks: Everbright, Merchants, Communication, Construction Bank.
The first two were the standout performers among medium-sized commercial banks, serving as the vanguards for raising overall profits. The latter two sought stability, acting as ballast.
Six brokerages: Everbright, GF Securities, Merchants, Citic, SPD Bank, Hai Tong.
They were purchased based directly on last year’s performance, as it’s still far from their time to shine.
Three ports: Yingkou, Tianjin, Tangshan.
The former is one of the few top stocks in Han Lie’s memory, while the latter two should benefit from the Beijing-Tianjin-Hebei Free Trade Zone.
Six state companies: China Railway, China Railway Construction, China Communications Construction, China Science, CSR, CNR.
Almost all related to railroads—for a reborn person, there’s no need to think about it.
Anyone from the future returning to a time without high-speed rail would yearn for the convenient travel of later years. As long as they know a little about the stock market, they would realize the tremendous potential of these stocks.
The rest are various "internet celebrity stocks", potentially popular concepts for a while.
In this regard, Han Lie gave Jiao Fangyan considerable freedom, with 500 million specifically set aside for chasing hot topics.
No matter how bearish the market, there are always tradable themes.
For example, last week’s leading concept, hydrogen fuel, saw Huachang Chemical rise by five consecutive daily limits, and Han Lie perfectly missed it.
Yet he doesn’t care at all.
These short-term quick profit opportunities are no longer in Han Lie’s sights.
Throughout the year, hundreds of stocks have such explosive growth opportunities, and no one can capture even half of them—in fact, there’s no need to capture that many.
With not much capital, catching two or three and profiting from a major rise is enough; the rest of the operations can afford small losses.
With more substantial funds, position management becomes more important than catching a few trending stocks.
In the long term, 95% of public funds are bound to lose money, due to four words—position limitation.
Take Xu Xiang’s Zexi as an example—around 2015 when the market rose to about 3800 points, he went into cash with only 10% remaining.
From the stage of 3800 rising to 5100 points, he missed out, not making any money.
From 5100 points dropping to 3400 points, he didn’t lose either.
Then he went all in at the bottom to catch a short-term rebound, making 3 billion in a few days.
Now compare the public funds of the same period, did they earn more or lose more?
In the final bull market, the average net value growth of public funds was less than 17%, while in the brief month of falling to 3400, the net value dropped nearly 42%.
The issue is, this wasn’t even the end; 3400 was not the conclusion.
So why did public funds in later years begin to frantically band together?
Because it’s stable!
If seven or eight public funds quietly unite, holding 30-40% of a company’s circulating shares, how could it fall?
Even if the market is bad, even if it dares to fall, at least it will fall slower than other stocks.
Then find a few buddies, lift it up from the bottom, wouldn’t that do the trick?
You help me, I help you, we play with human relationships, everyone in the circle is a friend, happily earning exorbitant management fees, isn’t it appealing?
If it can’t be lifted, just lie flat!
The management fee is already in hand, the extra for helping a buddy was earned too, when things get tough and you’re tearfully let go by a leader, can friends not give me a bite to eat?
Some fund managers, losing year after year, can still sit firmly in that position, leaving investors bewildered, raging and cursing on forums.
Everyone couldn’t understand: How the hell is it like this, why hasn’t the company replaced the person?
