A large portion of the rapidly developing hedge fund industry over the past year has been following Cersei Capital's continuous bullish stance on the Japanese stock market. Once it's confirmed that Simon Westeros has already exited, everyone will panic and flee, which would undoubtedly be catastrophic.
After a brief moment of terror, James Robinson gradually calmed down.
Someone in the conference room also noticed a very important question in Noah Scott's narration: "Noah, what's going on with Cersei Capital's Sub-Funds 1 to 5 now?"
When Noah Scott heard this question, a smile flashed across his lips, then immediately turned bitter, and he said, "This was the key I hadn't been able to figure out before, until that article in the Daily News".
Nelson Scott interjected, "'Westeros is here, and the stock market crash is too'?"
"Exactly", Noah Scott nodded, "'Westeros is here, and the stock market crash is too'. Everyone probably has to admit that guy really does have that kind of influence. Westeros staying in New York for a week in early October was definitely not a coincidence. Similarly, for the Japanese stock market, Westeros is a disaster-level presence; he went to Melbourne, and the Japanese stock market almost collapsed. So, who do you think most wants Westeros to leave, and who has enough power to quietly take over Westeros Company's Sub-Funds 1 to 5 entirely?"
"The Japanese government!"
The bitterness on Noah Scott's face deepened. He put down his pen, sat back at the conference table, and said, "Yes, the Japanese government. It's basically certain now that what we've been following for the past few months isn't Westeros at all, but the Japanese government".
A brief silence fell over the conference room.
After a moment, someone said, "Even so, the Japanese stock market is still rising, isn't it?"
Everyone looked at that person.
The Japanese stock market continued to rise for more than three months after Westeros's departure because most people were misled by Cersei Capital into continuously going long. If the news gets out now, it's not impossible for the Japanese stock market to directly crash next week.
James Robinson picked up the glass of water beside him and took a few sips, finally speaking again, "Noah, how long will it take us to completely withdraw from the Japanese market?"
Noah Scott deliberated, then said, "If we don't want to attract attention from others, at least two weeks".
Nelson Scott reminded, "Cersei Capital is still in the lead".
"That's what worries me most", Noah Scott looked at his father and said, "If I can discover this problem, others will probably gradually realize it too. Some people might even have realized it earlier than us and have already exited".
"Never mind others", James Robinson completely calmed down and said, "Noah, tell me your plan".
Noah Scott said, "At the close of trading last Friday, the Nikkei 225 index settled at 39,367 points. The news of Westeros's early exit may have already been exposed, and the Bank of Japan plans to raise interest rates for a second time next month. Therefore, no matter what, 40,000 points will be a turning point for the Japanese stock market. A conservative strategy would be for us to use the next two weeks to fully withdraw our funds and secure our profits. A more aggressive approach would be to close our long positions while establishing short positions. This carries a high risk, but the Japanese market is still dominated by long positions, so we can easily establish a large number of short positions. Once the index turns and everyone goes short, it won't be as easy to establish short positions anymore".
"From long to short", James Robinson unhesitatingly chose the second option, then added with sharp eyes, "Then, find an opportunity to spread the news that Westeros has already exited".
…
Simon was unaware of the discussions between Noah Scott and others. However, the exposure of Cersei Capital's 6th to 10th sub-funds' shorting of North American capital after the 'mini-crash' was somewhat intentional on Simon and Janette's part.
Neither Simon nor the Japanese government would likely ever actively disclose the details of that transaction in early July.
However, there are no impenetrable walls, and if too many people were severely harmed, Simon would eventually suffer. Now, if some powerful and astute capital forces discover the truth and withdraw early, even if the news leaks out later, the remaining smaller, less capable, and slower-reacting players can only blame themselves.
After all, as an offshore private hedge fund, Cersei Capital has no obligation to disclose its internal operations, and its transaction with the Japanese involved no irregularities.
If you follow the wrong lead and lose badly, you can't blame anyone.
Simon spent the weekend in San Francisco, discussing a donation with Stanford University.
After several months of effort, Ygritte Company's series of WWW-based fundamental patents have been registered in major countries across Europe, America, and Asia. Test versions of basic application software, such as graphic interface browsers and web design software, are largely complete. With the help of Westeros Company's invested tech companies like Sun, Cisco, and America Online, hardware devices like servers and routers based on WWW technology are also ready.
What's missing now is a platform to test the various technologies developed by Ygritte Company.
As one of the main talent training bases in Silicon Valley, Stanford University is undoubtedly the most suitable target. Therefore, Simon plans to donate $10 million to Stanford University in the name of the Simon & Janette Westeros Foundation, primarily to upgrade Stanford University's internal campus network.
In this era, a one-time donation of $10 million was by no means a small sum.
However, this money would largely be used for equipment and software procurement from high-tech companies in which Westeros Company holds stakes, ultimately benefiting themselves. The Simon & Janette Westeros Foundation's donation could help Westeros Company obtain corresponding tax deductions, and the substantial donation would also enhance Simon's public image.
As a generous donor, Simon would easily be able to get a few students into Stanford University in the future.
All in all, spending this money served multiple purposes.
After the donation ceremony on Monday morning, Simon was not in a hurry to leave San Francisco. After attending a luncheon hosted by Stanford University, he went to the Ygritte Company headquarters on Thurman Street in the afternoon, accompanied by executives from Sun, Cisco, and other companies.
As rising stars in the industry, everyone could see the enormous commercial potential hidden in the 'WWW' technology, which could connect all of North America and even the world. Sun Microsystems had previously proposed acquiring Ygritte Company entirely, and Steve Case of America Online showed obvious eagerness.
Simon, of course, would not hand Ygritte Company over to any of them. However, his investments in companies like Sun, Cisco, and America Online already implied a complete industry chain centred around the internet, so he naturally did his best to promote synergistic cooperation among these companies.
The meeting discussing the aggregation of resources from various companies to first operate a 'WWW' network on the West Coast of California lasted an entire afternoon. Due to the substantial investment and the difficulty in agreeing on profit distribution, no concrete results were reached. However, by the end of the meeting, everyone carried a distinct sense of ambition.
In the evening, everyone left Ygritte Company's conference room and went downstairs to the lobby, where they habitually paused to look at and discuss the 'You Know Nothing' motto on the wall.
Having to return to Los Angeles overnight, they didn't have dinner together.
The Gulfstream IV took off from San Jose Airport.
Inside the cabin, Jennifer sat beside Simon and said, "I always feel that your expression is very strange when you look at that quote on the wall of Ygritte Company's lobby".
Simon looked up from a document from MCA Company and smiled, "Don't you think the way I look at you is also very strange?"
Jennifer gave Simon a harmless side glance, then glanced at the documents in his hand, which she had, of course, personally collected. She then said, "So, is your next target Universal?"
MCA, short for Music Corporation of America, has always been the official name of Universal Pictures' parent company.
Cersei Capital's overseas funds were accumulating more and more. If not spent quickly, this money would only depreciate.
Simon had long set his sights on MCA, Universal's parent company.
Before this mini-crash, MCA's stock price had consistently remained between $45 and $50. MCA had nearly 100 million shares outstanding, so its market value was roughly the stock price with an 'hundred million' added. Speaking of which, Sony had made inquiries about MCA last year, and MCA chairman Lou Wasserman had quoted $8 billion based on the stock price, which directly made Sony back down and dutifully turn its attention to the second-tier Columbia Pictures.
After the North American stock market's 'mini-crash' on October 13th, MCA's stock price had fallen to $41.5 as of last Friday. Simon knew that North America's economic situation, after the recent mini-crash, would enter another year-long slump, which would only recover after the US achieved a decisive victory in the Gulf War.
During this period, MCA's stock price would continue to fall, eventually sliding into the $30 to $40 range. Simon would then be able to acquire MCA for a price comparable to Panasonic's $6.6 billion bid from his memory.
Beyond Universal Pictures, MCA also owned MCA Records, Universal Studios, and a valuable collection of cable television assets. If he could successfully acquire this company, Daenerys Entertainment would be able to directly address its shortcomings in records, television, theme parks, and other areas.
Facing his female assistant's question, Simon nodded and said, "Yes, but I haven't decided whether to transfer Cersei Capital's funds directly back to the country. You know, that's a huge tax bill".
Simon had no intention of hiding his overseas assets, or at least not too many of them.
Therefore, Cersei Capital would certainly register its taxes with the IRS on time. However, according to US tax law, as long as the money remains abroad, the registered taxes can be deferred indefinitely.