Chapter 312: Even the Ant can Fight the Elephant (First Update, Please Vote for Monthly Tickets)

Weidong Yan has also been following Ruan Weiliam recently. After hearing from Lanting Xuan, he immediately asked, "What's wrong with Zeus Fund? Did Ruan Weiliam have problems with his investment strategy?"
Lan Tingxuan nodded excitedly: "Not only Zeus Fund, but also Mason Foundation! - This time, I won't let these 'big guys' get away with it!"
Wei Dongyan raised an eyebrow: "I can believe that Zeus Fund has problems, but Mason Foundation... Ah Xuan, do you know the scale of Mason Foundation?"
If the comparison is made using warships, Merit Venture Capital is a frigate with a displacement of one or two thousand tons, Zeus Fund is a destroyer with a displacement of ten thousand tons, and Mason Foundation is a cruiser with a displacement of fifty thousand tons!
This scale is growing exponentially.
Weidong Yan knows that in order to completely solve Mei Jinhuan, he must bring down Merit Venture Capital.
But as long as the Mason Consortium exists, bringing down Merit Venture Capital is an impossible task.
It is easy to make Merit Venture Capital go bankrupt, and there are ways to make Zeus Fund fail too, but making Mason Foundation unlucky is not easy at all.
Wei Dongyan worries that Lanting Xu wants to solve the problem too simply.
Lan Ting Xuan pulled him into his own studio, opened the computer, and showed Wei Dong Yan, saying, "President Wei, take a look, this is the historical data analysis report of Zeus Fund that I made."
She simply turned on the projector and projected the contents from her computer onto the pristine white wall of the studio.
As Wei Dongyan focused his gaze, a series of data comparisons, various colorful charts, and data model simulations appeared on the snow-white wall.
Lan Tingxuan said excitedly, "This is the financial statement of the Zeus Fund since its establishment, which they have released on their official website for investors and potential investors to view."
"There must be something fishy with this data, but at least more than sixty percent of it is real, which is sufficient for our data analysis."
"I input their historical financial statements and their self-disclosed investment portfolios into my data analysis model, and this is the result."
Lanting Xuan used the mouse to circle a set of comparative data: "You see, over the past ten years, these two sets of data have been consistently appearing since the establishment of Zeus Fund."
The two sets of data that she circled for Wei Dongyan are the amount of loan to be paid and investment profits or losses.
"In simple terms, as the number of loans to be paid off increases, so does the investment profit."
"The colored model next to the data represents this comparison more accurately."
"Wei Dong pondered and said, '...so what do you think?'"
"I believe that the investment returns of the Zeus Fund all come from borrowing." Lan Tingxuan said firmly.
"Ruan William put up a certain amount of capital and fixedly purchased several stocks, and I inferred that they are stocks of domestic companies listed overseas."
"Ten years ago, these companies were just going public overseas and were not yet hot stocks, so Ru'an William was able to make a fortune by himself with his own $25 million investment and buy a stock that subsequently skyrocketed."
"And then, he uses these skyrocketing stocks as collateral to extract even more cash from banks or trading institutions, and reinvests it into his own investment portfolio."
"These stocks will continue to rise, and then he can use the stocks with higher value as collateral to borrow more cash from banks or trading institutions, and then add margin, which is leverage, to buy more stocks in his investment portfolio. The stock market will continue to rise."
"This has formed a virtuous circle."
"Over the past decade, domestic companies have gradually been accepted in foreign stock markets, especially with Zeus Fund's impressive performance, which has attracted a group of institutional investors and individual investors. As a result, the tide has lifted all boats, pushing the stock prices of these companies even higher. This is also the reason why Zeus Fund has achieved an annualized return rate of forty percent over the past ten years!"
"But there is one fatal flaw in his approach," Lan Tingxuan said, shifting the topic and pointing to the string of loans, he coldly remarked, "Once the prices of these stocks drop to a certain extent, his advantage will completely vanish. Moreover, because his investment portfolio is concentrated in these few stocks, if the prices of these stocks collapse, the damage to him will be like a domino effect..."
Wei Dong nodded approvingly: "This is what they say about 'Xiao He brings both success and failure.' If he had diversified his investments and not put all his eggs in one basket, his annualized rate of return would not have reached such a high level of 40%. It would have been difficult for him to continue raising funds. So he chose not to diversify his investments, putting all his eggs in one basket. Although it came with greater risks, at least he maintained a high rate of return for ten years. - And he made enough money."
Lan Tingxuan sneered coldly, "This time, I'll make him vomit all the money he earned!"
……
That night, Lan Tingxuan didn't sleep.
She first went to short sell stocks of banks and investment banks associated with Zeus Fund.
These stocks are now at their 52-week high prices, but she didn't borrow stocks first and instead sold them short directly.
After selling short several large banks and investment bank stocks abroad, she went to Robbid's forum to post, revealing her "get rich quick secret" to everyone.
robbid is an overseas trading website specializing in small and individual retail investors. Its forum gained fame earlier this year for the speculation on a certain game company's stock.
Overnight, the stock of this struggling game company increased nearly 200 times!
It can be described as an epic "short squeeze" event, which squeezed the private equity and investment banks that had shorted the stock almost to bankruptcy.
Lanting Xuan never underestimates the power of the masses.
Though ants are small, they can wrestle with elephants.
When she posted, she used the screen name "sleekymole".
Although the website was created long after the mole was killed by the Mason Group, it's impossible to have the screen name of a mole on this website.
Kelanting Xuan still wants to use this name, both to commemorate the mole who would rather be slaughtered than let ordinary people sacrifice, and to commemorate her innocent father Shen Ancheng who was murdered.
It was also her father, Shen Ancheng, who used this pseudonym to publish a program vulnerability about cryptocurrency trading websites online, which resulted in the largest crash event in cryptocurrency trading history.
In the next few days, it was like a replay of the events nine years ago.
The post by "sleekymole" on robbid, made by Lan Tingxuan, quickly became a hot topic.
At the beginning, everyone was passionately discussing whether the content mentioned in the post makes sense.
The post mentions that some foreign companies listed in the US may be greatly affected by recent policy adjustments in the domestic market.
This will severely hit the investment portfolios of certain private equity funds, such as Zeus Fund.
And Zeus Fund is an expert in borrowing to buy stocks and leveraging prices, so this round of stock price decline will have a big impact on this type of private equity fund.
Post urges everyone to sell their stocks as soon as possible, particularly individual investors holding these stocks.
At the end of the post, Lan Tingxuan also hinted that if Zeus Fund closes its positions due to a drop in stock prices, it will cause a chain reaction leading to significant impact on the margin of certain banks and large investment banks. They will also be required to replenish the margin by force.
Many retail investors understand this point when it is mentioned.
How do banks or large investment banks replenish their margin?
Of course, by selling stocks!
- Off-topic discussion -
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Seven o'clock at night, second update. Kisses!