Recast youth

Chapter 1014 Fund Establishment
Ye Feng spent the next few days waiting for Wen Yueqi's fund registration and for his abdominal injury to recover. After the final discussion, the name of the fund was changed again.

The original Scionfund was changed to Obsidianfund, a hedge fund initiated and established by limited partners. Currently, there are only four partners.

Wen Yueqi, Ye Feng, Xu Liang, and Chen Huang.

The form is that Wen Yueqi is responsible for the daily management of the Obsidian Fund, the formulation of investment strategies and specific measures. Chen Huang and Ye Feng are limited partners and the providers of most of the funds for the Obsidian Fund, but they do not participate in any trading activities carried out by the fund. and daily management of the fund.

In 2006, May 5th.

During this time, which has special significance to the Chinese people, the Obsidian Fund was finally registered, and the money of Ye Feng and others was also transferred to the fund's special account.

Thus was formed a hedge fund destined to shock Wall Street.

The so-called hedge funds, funds that use hedging trading methods are called hedge funds. In fact, they are also a form of investment funds, which means "risk-hedged funds". They use various trading methods for hedging, transposition, hedging, and hedging. Earning huge profits, but these concepts have gone beyond the traditional scope of risk prevention and income protection operations. In addition, the legal threshold for initiating and establishing hedge funds is much lower than that of mutual funds, further increasing the risks.

Different from China, where there are almost no hedge funds, hedge funds in the United States have been around for a long time, and the types and mechanisms are relatively complete. There are four major types of hedge fund trading models, namely: stock index futures hedging, commodity futures hedging, statistical hedging, and Option Hedging.

In layman's terms.

It is a bit similar to the way of suppressing the player and suppressing the banker at the gambling table. Hedge funds are a subversive fund. For example, if you are optimistic about the banker and think the banker will win, then the hedge fund thinks that the player will win.

Then the hedge funds will be idle and come to engage in betting mode with you.

The risk is very high, and the return rate is also very high.

Of course, it is also extremely complicated. During the establishment of Obsidian Fund, Ye Feng, who was afraid of trouble, still followed Wen Yueqi to learn.

While oral communication in English was improving by leaps and bounds, Ye Feng also understood what Wen Yueqi was doing every day. Anyway, Ye Feng found it particularly scary, because Wen Yueqi saw that Ye Feng was curious about this aspect, so she brought him with her during meetings.

It is different from domestic.

Domestic financial research mostly uses advanced algebra, but the United States is much more complicated. It also made Ye Feng understand why Wen Yueqi was able to gain a foothold on Wall Street. She conducted a simple experiment for Ye Feng. In this experiment, random simulation was first performed. The stock price trend is then determined by tossing a coin to determine the stock price trend the next day. The increase is determined by a random normal distribution. Each set of data must simulate the stock price trend for a thousand days, and this has a thousand days. The time series of each data is drawn as usual in stock trend charts.

At this time, Ye Feng was surprised to discover something. Such a completely randomly generated simulated stock trend was very similar to the real stock trend. He could easily find patterns recommended by general technical analysis on the simulated stock price chart. , such as ascending (descending) channel, shoulder top (bottom), arc top (bottom), jump up (down), etc.

But what made Ye Feng fall into trouble was that the data Wen Yueqi gave him was completely randomly generated. If pure technical analysis was used, the error would be obvious.

So Ye Feng began to experiment with Wen Yueqi again, and his return to China was delayed again and again.

This time, Wen Yueqi led him to simulate five groups of price trends. Then Wen Yueqi selected a real stock trend from the Dow Jones Index, and then mixed it with the five simulated stock price trend charts.

Then, Wen Yueqi took Ye Feng to find several professional financial experts to find out which one was the real stock trend. The result was that there was no statistical difference between the selections of these experts and the randomly selected results. .

Of course, it is impossible for Wen Yueqi to team up with these experts to amuse Ye Feng. It can only show that the results of this experiment are true.

"No wonder some financiers on Wall Street make money." After the experiment, Ye Feng couldn't help but sigh to Wen Yueqi: "The prediction of stock trends is so accurate. Even the simulated stock trend charts are almost the same as the real ones."

"Prediction is just a hypothesis and cannot be regarded as consequential."

Wen Yueqi smiled and said to Ye Feng: "This experiment was demonstrated to us by my mentor Professor Duncan when I was studying in the MBA Finance Department at university. It has also been repeated many times in the financial world."

Ye Feng asked curiously: "For example, if I want to gain a foothold on Wall Street, how long will it take me to study? What kind of books should I read?"

"You have to start with mathematical theory."

Wen Yueqi looked at Ye Feng with a half-smile: "If you are really interested, from discrete stochastic processes to Brownian motion, from real variable analysis to random books, you have to study these systematically, as well as post-option and capital price theory. You should also study books like this."

Ye Feng said speechlessly: "What discrete and random Guo Chen, incident analysis, it makes me feel dizzy."

"So, it's not that easy to really gain a foothold on Wall Street."

When Wen Yueqi said this, she glanced at the busy staff in the office area and said to Ye Feng: "Do you know their academic qualifications? Let me tell you, if you want to work in the financial industry in the United States, mathematics is the most basic. Among them, Less than half have a PhD in mathematics, especially in asset price theory. The mathematics level must be at least a master's level, otherwise you will not be able to survive if you want to."

Ye Feng was greatly shocked: "Then I'd better go back to China. I'm just an ordinary undergraduate now. I didn't graduate from 985, 211, advanced mathematics, etc., forget it."

"Hahaha."

Wen Yueqi finally couldn't help but laugh out loud. She was already tall and strong, but when she suddenly laughed out loud, she had a unique charm. Ye Feng even saw it in her. Before Zhang Lan established a studio, he sniped at Chen Yiming. The feeling when I was in Changxing International.

Of course, Wen Yueqi needs to be more powerful and professional.

In comparison, Zhang Lan only relied on insider information at that time. She knew that Chen Yiming was making a game with the stock of Qingshan Group, so she was answering the question based on the answer.

Of course, Zhang Lan was able to restrain his greed and exit rationally. This in itself is also an amazing self-control, and he has a very strong perspective on the overall situation.

Wen Yueqi finally stopped laughing and said to Ye Feng: "Now you know how difficult it is for me, right? You can't survive on Wall Street just by relying on your background. Do you understand?"

"It turns out you did it on purpose." Ye Feng finally came to his senses.

"It was on purpose."

The corners of Wen Yueqi's mouth raised slightly: "Don't think that I don't know your thoughts. When we first met, you thought that I relied on my father's relationship to gain a foothold on Wall Street. How can success be as easy as you think? Countless efforts have to be made behind it. And sweat.”

Seeing Wen Yueqi's proud and arrogant look, Ye Feng had the urge to say that it would be easy and his company would be listed on Nasdaq before the end of the year, but after thinking about it, he gave up this plan.

After two lifetimes, how can you still be so straight?
So Ye Feng "sincerely" praised Wen Yueqi and greatly affirmed Wen Yueqi's own abilities. When Wen Yueqi looked at Ye Feng again, she became more and more pleasing to the eye. No wonder he was so successful in business at a young age and had a good vision.

(End of this chapter)