Golden Spoon Investor

A week later, in New York City.

On the southern edge of Central Park, nestled among the towering modern buildings of 5th Avenue, stood an elegant and historic luxury hotel—the Plaza Hotel. Opened in 1907, this New York landmark was steeped in history and had long been a favored gathering place for the city's elite and notable figures. It was also the site of the historic Plaza Accord.

The hotel, built in the French Renaissance style, with its white terracotta facade and green terracotta-tiled roof, exuded a timeless charm. A sleek limousine pulled up slowly in front of the hotel, and as the door was opened by a middle-aged doorman in a crisp uniform with white gloves, Seok-won and Landon, both dressed in suits, stepped out.

As they entered the hotel, Seok-won was immediately struck by the grandeur of the main hall, with its high ceilings adorned with large chandeliers and the floral arrangements of roses placed below them. The smooth marble floors and the walls and ceilings, richly decorated with gold accents, made the space feel like a European palace.

"The event is on the second floor," Landon informed him, to which Seok-won nodded slightly.

They took the elevator to the second floor, where the marble-floored corridor greeted them with a sign that read "LTCM Investment Seminar." At the entrance, where a well-dressed staff member stood, they presented their invitation before entering the venue. Inside, many people had already gathered, either sitting in their assigned seats or chatting in small groups.

Landon quickly scanned the room and whispered to Seok-won, "I see people from JP Morgan, Goldman Sachs, and over there, folks from pension funds."

Landon nodded towards the left. "It looks like every significant investor on Wall Street who manages a decent amount of capital is here, including those from Salomon Brothers, the firm that pushed Wiseman out."

Seok-won quietly nodded, taking in the scene as he slowly surveyed the room. As Landon had mentioned, there was a substantial turnout, not only from institutional investors but also from those in the hedge fund industry, reflecting the considerable interest on Wall Street in the LTCM fund that Wiseman had established.

"I see someone from Eldorado Fund too," a voice said from beside them. Seok-won turned to see who had spoken.

It was a middle-aged man with sleek black hair, giving off a clean and intellectual aura. He stood there with his companions, smiling.

"Rodney, you're here too," Landon said, recognizing the man and shaking his hand warmly. Landon then introduced Seok-won to the man.

"This is Rodney, the CIO of Quantum Fund. Rodney, this is our fund's representative."

Quantum Fund, founded by George Soros, who became famous for breaking the Bank of England by shorting the pound, was a well-known name, and Seok-won's eyes sparkled with interest.

Rodney, who had taken over the fund after Soros semi-retired to focus on running his charitable foundation, was a significant figure. Meeting such a big name was unexpected, but Seok-won maintained his composure and extended his hand.

"Nice to meet you. I'm Park Seok-won," he introduced himself.

Rodney, intrigued, shook his hand with a keen expression. "Rodney. I've been curious about who's behind the Eldorado Fund, which has been making waves lately, and now we meet here."

Rodney gave Seok-won an appraising look and remarked, "I heard you were young, but seeing you in person, you look even younger than I expected."

"Age doesn't necessarily equate to successful fund management. In this business, what really matters is the returns. That's the true measure of skill," Seok-won replied confidently.

It was common for people to be overawed by the name "Quantum Fund," but Seok-won showed no sign of being intimidated, standing tall and speaking his mind. Rodney, impressed by Seok-won's confidence, found his interest in the young man growing.

"Haha, you're absolutely right. It seems I may have made a mistake on our first meeting," Rodney said, quickly apologizing.

"It's fine. I am young, after all. I might be the youngest person in this room. By the way, I heard you graduated from Harvard?"

"Yes, it's my proud alma mater."

"I'm currently studying at Harvard as well."

"Oh! So you're a fellow alumnus. Haha, what a coincidence."

Rodney looked pleasantly surprised, but then his expression changed as if something had just dawned on him.

"Did you say you're still in school?" he asked, blinking in disbelief.

"Yes. I'm graduating this year," Seok-won said with a slight smile.

"Huh…"

Rodney let out a sigh of amazement as he stared at Seok-won, as if trying to confirm that what he'd just heard was true.

"My God. I didn't see that coming."

Having been keeping an eye on the Eldorado Fund after seeing its impressive gains from the AT&T-NCR merger, Rodney was even more astonished by this revelation.

At that moment, the event host took the stage, bringing the microphone close to his face.

"The seminar will begin shortly. We ask all esteemed guests to please take your seats. Once again…"

Hearing the announcement, Rodney looked disappointed. "It seems we'll have to wrap up our conversation here, though I wish we could talk more."

"I feel the same," Seok-won replied.

Rodney took out a business card from his inside pocket and handed it to Seok-won. "Let's make sure to catch up next time."

After exchanging business cards, Rodney turned and headed to a table at the front. Watching him walk away, Landon leaned in and spoke in a low voice to Seok-won.

"Are you sure it's okay to reveal that you're still a college student?"

"What's the big deal?" Seok-won replied, tucking Rodney's card into his pocket as if it were nothing.

"It's not exactly a secret. A little digging would easily reveal that."

"That's true."

"And unlike other funds, ours isn't reliant on raising capital from investors, so even if word gets out, it won't be an issue."

"You're right."

It wasn't that Seok-won was deliberately trying to hide his existence. If that were the case, he wouldn't have attended this event in the first place.

"Let's go take our seats too."

As they looked around, they saw people who had been mingling now returning to their seats.

"This way," Landon said after checking the invitation and leading the way.

Their assigned seats were toward the back, far from the stage, subtly indicating Eldorado Fund's current status on Wall Street.

'If we hadn't made a substantial profit from the NCR shares, we probably wouldn't have received an invitation at all,' Seok-won thought.

As he sat down, he resolved to eventually rise to a position where he could sit alongside people like Rodney and the JP Morgan and Goldman Sachs representatives.

Soon after, the event began with a greeting from Jacob Wiseman, who had a solid build and sharp eyes.

"…After tracking and analyzing data over the past twenty years, we found that the market shows an average annual volatility of around 15-20%."

With the room dimmed, renowned Harvard economics professor Sean Payne, considered a strong Nobel Prize candidate, stood at the podium, and the slide projected on the screen changed.

"As you can see from this graph, although there may be periods where volatility exceeds the average, the graph always returns to the norm without exception."

The attendees focused their attention on the graph, and Seok-won, too, listened intently from his seat.

"According to this formula, given that the expected volatility of the asset is an essential factor in pricing options, when the price of the asset rises, the option price will also rise. Therefore, by knowing the option price, we can predict the market's expected volatility."

Professor Payne spoke confidently as he addressed the audience.

"If we trade using this pattern, I am confident that we can achieve returns far above the market average."

When Professor Payne finished his lengthy explanation, the audience responded with applause.

However, the attendees' expressions were less than enthusiastic. To their disappointment, Wiseman had remained silent after his initial greeting, leaving the explanations to others, and the explanations themselves were complex and academic, more like an economics lecture than a practical investment presentation.

Sensing the uneasy atmosphere, Wiseman returned to the stage and grabbed the microphone.

"Was the explanation too difficult for anyone to understand? If so, don't hesitate to ask questions. I can explain it even more complicatedly for you," he joked lightly, drawing shallow laughter from the crowd.

That's when Seok-won raised his hand, as if he had been waiting for this moment, and Wiseman pointed to him immediately.

"The gentleman at the table on the left, please go ahead."

Standing up, Seok-won took the microphone from the staff member and began speaking in a calm voice.

"I have a few questions."

"Oh boy, hearing that you have multiple questions makes me nervous. Is this how Professor Payne feels in every lecture? I have a newfound respect for him."

Wiseman's skillful banter drew light laughter from the audience, and Seok-won thought to himself, 'He's definitely no ordinary person.'

After waiting for the laughter to subside, Seok-won spoke again.

"First, you're asking for compensation well above the industry average. Are you willing to adjust that?"

"Ah, of course, that question was bound to come up," Wiseman said with a relaxed nod.

"When you see the returns in a year, you won't think the fee is expensive at all."

"Are you that confident?"

"Absolutely!"

Wiseman gestured toward the fund partners and distinguished professors on the stage with him.

"With a dream team like this, not achieving high returns would be the real challenge, wouldn't you agree?"

"We'll see about that."

Seok-won then moved on to his next question.

"No matter how much I listen, it seems like your explanation lacks concrete investment plans. Could you provide more detailed information on how the funds will be managed?"

The other attendees, who had also felt disappointed and frustrated by the lack of substance, murmured in agreement.

Meeting the eyes of the attendees, Wiseman tightened his grip on the microphone and replied.

"I'd love to give you a clear answer, but our investment strategy is confidential, so we can't disclose it."

The room erupted into loud murmurs of discontent.

"So you're asking us to blindly invest large sums of money without knowing anything?"

"Revealing the investment strategy before the fund's launch could cause various issues, so I ask for your understanding in this matter."

Wiseman's refusal to share details about the investment strategy made some attendees visibly uncomfortable.

"Finally, from what you've explained, it seems like your plan primarily involves investing in bonds. But given the low transaction margins typical of bonds, I doubt it will be easy to achieve the promised 30% returns after deducting fees."

This question resonated with the other attendees, who turned their attention back to Wiseman.

Given the nature of bonds, the transaction margins were generally small unless under exceptional circumstances. This naturally raised doubts about whether the promised returns could be met.

After hesitating for a moment, Wiseman finally spoke, as if he had no other choice.

"To address that concern, we plan to significantly increase the size of our trades by leveraging the capital we've secured."

"In other words, you're planning to use borrowed money for speculative investments."

"That's correct."

As Wiseman nodded, Seok-won pressed further.

"How much leverage are you planning to use?"

Wiseman hesitated once more before reluctantly answering under the weight of the audience's expectant gazes.

"We're considering a leverage ratio of 20 to 30 times."

The attendees gasped in shock and began to murmur loudly.

"30 times…"

"Isn't that way too risky?"

"Ugh."

Even on Wall Street, where leveraging was common practice, a ratio of 20 to 30 times was enough to make even the most risk-loving investors shudder.

After Seok-won finished his questions, other attendees quickly followed with their own.

However, Wiseman refused to give straightforward answers to any of them, and the seminar ended with a general sense of skepticism and unease among the audience.

As they rode back to their hotel in the limousine, Landon turned to Seok-won and remarked, "Judging by the atmosphere, it doesn't look like they'll be able to raise the funds they're aiming for."

In Landon's eyes, the seminar had been a complete failure.

But reclining in the plush leather seat, Seok-won surprised him with an unexpected comment.

"No, it won't be easy, but they'll still manage to raise the full amount."

"But the mood at the seminar, and even your own skepticism… doesn't that indicate otherwise?" Landon asked, puzzled.

"We won't be investing, but others will. When greed takes over, it tends to blind people."

"I'm not sure I understand," Landon said, still confused.

Seeing Landon's bewildered expression, Seok-won calmly explained his reasoning.

"At first, the secretive investment strategy and high risk will make people hesitant to invest."

"That makes sense."

"But the temptation of a 30% return, even after fees, will be hard to resist. And once Wiseman's past performance at Salomon Brothers becomes widely known, people will be eager to throw money at the fund."

"If they can really achieve the promised returns, shouldn't we invest too?" Landon asked, now feeling a bit anxious.

Seok-won responded with a sly, knowing smile.

"We can achieve even higher returns elsewhere, so why would we lock up our money here?"

"What?!"

Landon was momentarily stunned, finding it hard to believe that Seok-won was talking about achieving returns even higher than 30%, which was already an astonishing figure.

But after seeing Seok-won deliver unbelievable returns several times before, Landon couldn't help but wonder, "Maybe… just maybe… he could do it again."

As he stared at the confident expression on Seok-won's face, that familiar feeling of hope began to creep up inside him once more.

TL/n - 

"30 times leverage" refers to a financial strategy where an investor borrows 30 times the amount of their own capital to increase their exposure to an investment.

Here's a simplified breakdown:

Investment Example: If an investor has $1,000 and uses 30 times leverage, they can control a total investment of $30,000.

Potential Gains: If the investment increases in value, the returns are calculated based on the total amount controlled, not just the investor's initial capital. For instance, a 10% gain on $30,000 would yield a profit of $3,000, which is substantial relative to the initial $1,000 investment.

Risks: However, leverage amplifies losses as well. If the investment loses value, the losses are also calculated on the total amount controlled. For example, a 10% loss on $30,000 would result in a $3,000 loss, wiping out the entire initial investment.