Chapter 630 – Baptism
13F.
It can be said to be the basis of the modern stock market.
‘Now I know…’
Even Sora knows.
In Korea, we also refer to pension fund portfolios.
Investment strategy is conservative.
Once you have decided, push through to the end.
Daily News− 「Pension fund sells 10 trillion won this year… Ants “Why are you holding back KOSPI?”
The sale of Ohsung Electronics, which made a lot of noise in the public, also happened like that.
Since two years ago.
‘I bought a huge amount.’
Korea-Japan trade dispute.
Corona crash.
The pension fund alone supported KOSPI.
It was purchased for an astronomical amount.
We are just selling it now.
“Pension funds are also turning to selling again. It is interpreted that preemptive selling was the right thing to do.”
It has subsided for a while recently.
This is why KOSPI was able to reach 3400.
You never know when you might sell it again.
I decided to sell the stocks before that.
‘Because I was expecting it.’
Amount previously purchased.
We did not dispose of it sufficiently.
It is too early to change the direction of pension funds.
《Do you want to have a taste of Article 12? Uh? There are still 20 trillion left! They’ll sell 20 trillion more!》
Just like what the protesters said on TV.
We still need to sell 20 trillion more.
You must know this background.
To invest in stocks in Korea.
“Rather, the problem is the exchange rate… Pension funds are also increasing the proportion of overseas assets. If CW Securities’ assets are also withdrawn, it will inevitably have an impact on the domestic foreign exchange market.”
“There is enough hedging there.”
“I would like to ask you a favor.”
Take a look at the National Pension Service’s portfolio.
Fund flow is reflected in trading.
It is the basic of basics.
They are one of the few in Korea that do it properly.
‘They are complexly intertwined and even interact.’
So the meeting is underway.
In order to move large amounts of money, you need to get the sum right.
Opinion from the risk management team.
It seems that the FX team was reflecting and preparing for this a long time ago.
“You can say that the flow of funds moves almost in the same direction as originally planned. Then, the key is how the funds are used…”
They did everything they had to do.
The rest is under the jurisdiction of other departments.
Office workers have similar thoughts.
All eyes are on Sora.
Sharak~
Documents prepared.
We decide to have a briefing.
This is the situation of the strategic stock management team.
“We have no particular problems. We are well-connected with the local exchange, and purchases are progressing stably. We are also achieving results in trading, which was pointed out as the biggest challenge. For specifics, please look at the Activision Blizzard trading records on page 2. It will be fine.”
It is bound to be different from Korea.
If a problem arises, it will definitely be there.
A sigh of relief is exhaled.
In fact, it can be said to be a miracle.
‘I thought it would be fortunate if the status quo was maintained.’
‘The capabilities of our company’s management team are good.’
‘It’s not just the breasts that are big.’
Unprecedented.
There is literally no precedent.
Korean securities companies become global funds.
“There was an incident where the house state government was sued. As a result, losses occurred in spot assets, but profits more than made up for it through short selling and derivatives.”
It succeeded.
The management direction is not conservative at all.
Short selling and derivatives.
You are touching a high-risk product.
“The position is very complicated.”
“Because this all has meaning.”
“But I have a question.”
“?”
“Most of the losses came from call options rather than spot money. Can this be considered a hedge?”
People in the industry are also holding their tongues.
Various products are complexly intertwined.
You must understand and operate the system.
Not just those basic things.
“If you look at the 13F disclosure, you can see that the call option premium we paid is only $5 million, but in nominal value it is completely different. It is equivalent to $200 million.”
Psychological part.
It goes without saying that psychology is important in stocks.
Even if you hear it a hundred or a thousand times, you won’t understand.
Because I don’t understand.
‘So it was some kind of smokescreen operation…’
‘Burning 5 billion to defraud public disclosure?’
‘This guy didn’t go crazy too.’
This is enough money to play and eat for the rest of your life.
I’m scared to even touch it.
A lot of money.
It is handled and consumed without a clear purpose
“In contrast, the put option has a notional value of $50 million, but the premium paid is more than $10 million. We are seven left to make up for the loss incurred on the call option.”
It’s like throwing money on the ground?
Common sense suggests so.
Trading is crazy.
Since actual results have been achieved, there is nothing more to say.
Ururu~
Such thoughts.
It’s not like I didn’t do it.
Leaving after finishing the meeting.
‘I guess it’s common to see it that way.’
I can’t help but feel strange.
It is natural that it appears abnormal.
But the abnormal is becoming normal.
The industry consensus has changed.
《What kind of bullshit are you saying that you came to the economics department to work at a securities company?》
Something I heard when I was 20.
I only understand it after working at a securities company.
80% of the strategic stock management team is in science or engineering.
Applied mathematics, computer science, physics, etc.
“Director Yoon!”
“Yes?”
“I would like you to take a look at the progress of machine learning.”
That doesn’t mean there is no need for traders.
You also have a role.
Statistics and coding.
Fields that require specialized knowledge are handled by rank-and-file employees.
“It seems better to exclude quantities whose purpose is not known.”
“Why?”
“It could be a mechanical trading for hedging. To avoid risk, you pick and buy any of the assets on the other side…”
Helps with feedback.
There is too much information in the market.
Especially in the United States.
‘Because the stock exchange made it public.’
Pension funds are not the only ones opening portfolios like in Korea.
Most organizations do it.
13F.
It pops up out loud.
The investment strategy is established based on that.
“I guess I should only learn the parts I understand. I can’t imagine buying anything at all.”
“There is a lot of information with noise. Some people create it on purpose.”
“?”
AI learns!
Only trade with high probability!
It doesn’t seem ideal, but it seems.
‘There’s no way I can just watch that happen.’
Institutions are by no means easy.
Information is not provided honestly.
No, I use it.
It is to induce other organizations to make mistakes.
“I wondered if it had any meaning, but this is what happened…”
“Isn’t it difficult?”
“Yes.”
Return to the department.
Dad.
This is the content we have been working on for the past half year.
I bought a call option that would become a piece of tissue paper.
If you look at it in nominal value, it looks very big.
‘Short positions are subject to public disclosure.’
To make it look natural, I even bought it in kind.
On the surface, it seems like a long investment.
In reality, the proportion of shorts is much higher.
There was intentional distortion in the 13F disclosure.
There was an organization that bit it.
The stock price was driven down by hitting short sellers like crazy.
“I didn’t expect there to be such aggressive guys.”
“That’s NASDAQ.”
“Ah…”
“I will do anything for money. Anything.”
What if it was really long?
In order to save the call option, I had to cry and buy the spot.
Even if you stop or take a break, you will ultimately lose money.
It only fills the stomach with the short sellers.
Gulp!
I used it in reverse.
Pretending to be a very naive new securities company.
“That’s the best. If you want to survive, learn at all costs.”
My father’s words, which were always gentle, sound louder today.
* * *
It is bound to become an issue.
“ATVI…”
“Blizzard short selling is at an excessive level.”
“According to AI, short covering of at least 5 million shares is expected.”
Short selling.
It’s different from Korea.
Organizations also risk their lives.
This is because it is an act that causes ripples in the market.
It becomes known to all securities companies.
“Even considering the increase, isn’t this a loss-making deal?”
“That is no longer the case.”
“?”
You guys have to cover short, right?
It could also eat away at the short selling power.
Usually short-term.
Enter briefly with solid evidence, eat briefly, and exit.
‘I don’t think the children would know that.’
So it doesn’t interfere.
Each institution has its own specialty.
Merlin Capital is famous.
By preying on securities companies.
“There were guys who were in position first.”
“You made such a beginner mistake?”
“It’s fascinating. When I inquired with the research team…”
Conversely, they can also be eaten.
Sometimes it is due to a simple mistake.
‘CW Securities? Lee Chan-wook? Why does it feel like I’ve heard it before somewhere?’
A new dark horse.
There are also moments that come to mind.
Won the battle against institution and institution.
The winner is known immediately.
Wall Street is not an ordinary stock market.
“It’s Lee Chan-wook. Lee Chan-wook!”
“How do you remember Asian names accurately? I need you to explain it to me.”
“That Asian guy who started a fight with Warren Buffett!”
It is a huge gambling hall with a sign saying ‘Legal’.
It doesn’t matter what means or method.
Money.
Reputation.
Achieve it in any way.
If a potential enemy arises.
‘The person who made a fuss at Berkshire Hathaway’s shareholders meeting…’
‘He’s coming to Nasdaq?’
‘Hehe, there won’t be any harm in remembering it.’
It is a place where information is faster than anywhere else in the world.
Lee Chan-wook’s name spreads throughout Wall Street.
