Rebirth Tokyo 1986

Chapter 109 What is the most important thing about finance?

"Yes, President!"

"Also, in terms of personnel, we mainly recruit financial practitioners who are honest and can keep secrets."

Although such people are rare, they are still easy to recruit.

There are too many corrupt officials in the financial industry, and honest people will be excluded. You can find out who the weirdos are in the company more accurately by asking around.

"no problem."

Kamoto Takashige answered even louder, feeling very warm in his heart.

After the fund was officially established, another person in charge of the company, Shinji Kikuno, the third-in-command of the fund, asked.

"Boss, how much do you plan to invest?"

"About 10% of the funds."

Although the policies of hedge funds are still vague, some tacit rules have been formed between hedge funds and investors.

As the manager of the fund, Masato Takeshita needs to invest at least 1%.

This amount of money is not too much, it mainly shows an attitude.

I will not use the fund's money for any illegal activities or harm the interests of investors.

In addition, investors believe that managers will work harder if they invest money.

The reason why Masato Takeshita chose to invest ten times the amount was because of this.

This is mainly because the Zishu Fund is not very famous, and he himself is not very famous either.

If you want to raise more money, you need to invest more money yourself.

This is the only way to win the trust of more investors.

You need to make your attitude clear so that investors can feel more confident about you as a newcomer.

Once the company grows bigger, there will be no need to use this trick.

By then, you will have proven yourself, and countless people will be rushing to invest.

As for whether you will volunteer at that time, it depends on the individual.

However, under normal circumstances, the ratio will be reduced to 1%.

After all, in the eyes of people in the financial industry, making money with your own money is not a skill, but making money with other people's money is an ability.

After registering the hedge fund, Takamasa Yoshimoto and three others also compiled the "Partnership Agreement" and other sales contracts.

Then, under the guidance of Asuka Ryo, it was revised several times and finally a qualified version was determined.

Japan's regulations on private equity funds are very strict, even stricter than those in the United States.

Private equity funds are not allowed to promote themselves in any public place, and advertising is even more prohibited.

There are only three ways for private equity funds to promote:
Word of mouth in upper class society; introductions from acquaintances; other financial companies.

At this time, the benefits of Waseda University's financing are reflected.

Masato Takeshita can use his connections at Waseda University to promote and subscribe to the fund.

Waseda University is not as good as Keio University in the field of economics, but it still has many well-known wealthy people.

"Takeshita-san, can you give me a more detailed introduction?"

"Okay, currently our Rat Phase I Fund has raised more than 300 billion yen."

“The fund is closed for three years and the management fee is 3%.

“至于分红，10%以下不收分红；11%到50%只收20%分红；51%到100%只收30%分红；100%以上收取40%分红。”

Masato Takeshita adopted a multi-pronged policy, not only with a very high proportion of self-invested funds, but also with very large concessions in terms of dividends.

No hedge fund would dare not distribute dividends below 10%.

Even new hedge funds generally do not distribute dividends below 4% or 6%.

The annual return rate of the entire hedge fund industry is less than 10%.

Most hedge funds lose money, and only a few of the top ones make money.

The middle-aged man did not comment on this. If the fund loses money, there will be no dividends at all. Not collecting dividends is just empty talk.

At this time, another investor wearing a big gold chain said: "I don't care about this, I only care if I can make money if I buy it."

Then he glanced around and spoke in an inciting manner.

"I believe that everyone has a similar attitude to me. Isn't that right?"

"Yes."

Investors nodded in agreement. Even if they didn't say anything, the expressions on their faces said it all.

"I'm sorry, but there is no organization in this world that can guarantee a bottom line. If there is, then it's either a scammer or the company has problems."

Although Masato Takeshita was familiar with future events, he did not dare to make any promises about them.

If you make promises casually, investors will only get more demanding.

Fortunately, it is now a period of bubble economy. If it was after the bubble burst, Masato Takeshita would face even more fatal difficulties.

After the bubble burst, financial institutions such as Changxin Bank and Yamaichi Securities began to engage in outrageous operations.

They all agreed to the stringent demands of major clients, which means that no matter whether financial institutions lose money or make money, they need to ensure the safety of customers' principal.

Such conditions directly dragged a large number of Japanese financial companies into the abyss.

If the Japanese government had not actively intervened to save the situation, most financial institutions would have gone bankrupt.

Investing is a risky thing. Making reckless guarantees can only hurt others and yourself.

While harming their own company, they also harm subsequent investors.

To put it bluntly, this is an alternative Ponzi scheme.

"I've read reports that Soros's Quantum Fund made a profit of more than $1985 million in 1."

"Can you make a similar guarantee here?"

Soros became famous as early as the 60s. His operation of shorting the US dollar and going long on the Japanese yen two years ago made him famous on Wall Street.

Most of the people attending the seminar were attracted by Soros’ story.

"Then did you know that Soros also suffered a huge loss in 1981?"

Soros is not an undefeated general in the financial field. In fact, he often loses.

In 1981, I misjudged the US economy and lost so much that I almost wanted to retire.

But what comes next is the worst.

It is estimated that he has now started planning to short the Japanese stock market, and will suffer the worst defeat in his career.

“No fund dares to promise its clients a guaranteed minimum investment, but those who stick with it will surely make untold fortunes.”

Hedge funds also follow the 2/ rule, with only % making a profit.

But those that do make a profit usually make huge profits.

This is also the biggest reason why people continue to flock to hedge funds.

Take a gamble and turn a bicycle into a motorcycle.

After explaining for more than two hours with a dry mouth, Masato Takeshita became somewhat impatient.

He simply said: "I have said everything that needs to be said. If you are willing to believe me, then just sign the agreement. If you don't believe me, then eat and drink well."

"Mr. Takeshita, are you really willing to subscribe to 10% of the shares? If so, then I am willing to invest 5000 million."

There are still some investors who are quite excited. They are all middle-level employees who are eager to get rich quickly.

"Of course, this is already written into the agreement."

Masato Takeshita is preparing to cut off a portion of his profits from blue-chip stocks.

Although he has a relatively stable personality, he also longs to try some tightrope walking activities.

A 10% stake in a hedge fund is a good choice.

It won't hurt your bones and can satisfy your desire for adventure.

(End of this chapter)