A Wall Street Genius's Final Investment Playbook-Chapter 52

Dding!

Gerard flinched at the notification that popped up on his smartphone. The sender was none other than Ha Si-heon.

<January 2014 Investment Status>

It was the monthly report promised to investors. A mandatory email, and yet…

Why did it feel like a summons to a duel? Gerard stared coldly at the email for a long time before reluctantly opening it.

Investment Principal: $5,000,000

Profit: +$31,890,500

Return Rate: +637.81%

Total: $36,890,500

Gerard’s $5 million had grown to nearly $37 million. It was an unbelievable profit, yet he felt no joy.

‘If even my investment yielded this much, then that guy… How much could Ha Si-heon have earned?'

The calculation wasn’t difficult. Multiply Si-heon’s initial capital by the return rate and assume he took half as a fee…

It would amount to nearly $100 million. Ha Si-heon had earned an astronomical sum from a single investment. And all of it was through operating fees alone.

‘I should’ve never gotten involved…'

A wave of regret washed over him. If Si-heon had only invested his own capital, he would have never grasped this fortune. In trying to pressure him with money, Gerard had essentially handed Si-heon $100 million.

‘What on earth do I do now…’

He felt a sudden urge to call his father but suppressed it. He needed to break his habit of relying on adults around him. He had to solve this on his own, no matter what.

‘Let’s stick to the original plan for now.'

After much hesitation, Gerard picked up his smartphone. He scrolled through his contacts and, once he found the necessary name and number, pressed the call button without hesitation.

[Why are you calling me?]

The person on the other end sounded puzzled, which was understandable—there was rarely any reason for the two to be in touch.

If Gerard was calling, it clearly wasn’t for personal reasons.

Skipping the pleasantries, he got straight to the point.

“Are you still working at the SEC?”

The former classmate Gerard contacted was an employee of the SEC—the Securities and Exchange Commission.

“Then you must know about the Genesis incident.”

[Don’t even mention it. I haven’t been able to go home because of it…]

“I also invested in it. I earned over 600% profit…”

[What?]

After calmly explaining the situation, Gerard forwarded Ha Si-heon’s investment report to his friend.

‘Will this actually work…?’

Gerard’s strategy was simple.

If Ha Si-heon succeeded in the investment, accuse him of insider trading. Whether insider trading had occurred was uncertain, but the circumstances were suspicious enough. If definitive evidence surfaced, Ha Si-heon would become a criminal.

Whether the evidence could be found was another matter—but that was the SEC’s job. All Gerard could do now was wait.

In truth, the SEC was already keeping a close eye on Ha Si-heon. The Genesis incident was an unprecedented case that shook the market. With everyone’s attention on it, every investor who recorded high profits was under scrutiny.

An analyst from Goldman, who reported a return of 637%, had already appeared on their radar. Gerard had merely provided the decisive evidence.

“He predicted a surge of over 500% in advance.”

The investment report Gerard handed over to the SEC was proof that Ha Si-heon had prior information. Upon receiving this evidence, the SEC immediately launched an investigation.

But progress was slow.

Ha Si-heon had the perfect alibi.

“My investment date was December 11th. At that time, even the committee analyzing the data didn’t foresee such optimistic results.”

December 11th.

At that time, the Data and Safety Monitoring Committee was still anxiously awaiting the results of the second biopsies of clinical trial participants. Due to delays in receiving the results, they had decided to review half of the data first.

To put it simply, it was like grading only half of the test. Even they hadn’t anticipated such groundbreaking results. Therefore, insider trading couldn’t be established. If even the insider didn’t know this would happen, how could it be insider trading?

Ha Si-heon’s argument possessed irrefutable logical consistency. However, the SEC investigators couldn’t back down so easily.

“Genesis is a one-of-a-kind case in the market. Yet, you poured your entire fortune into a single stock during that exact period. Are you saying that’s a coincidence?”

Ha Si-heon had invested all of his capital into a single stock. A reckless act that defied common sense, and yet that stock had shown an unprecedented surge?

It couldn’t possibly be coincidence! He must have known something to make such a choice.

In response to the investigator’s suspicion, Ha Si-heon offered an unexpected answer.

“That was a mistake on my part.”

“A mistake?”

“I was foolish. Overwhelmed by pressure, I lost my rationality and made a ridiculous decision. It was purely an emotional choice.”

Ha Si-heon called the investment a mistake. A desperate and emotional blunder made by an inexperienced analyst trying to prove his worth.

The investigator looked incredulous.

“So, you’re telling me you made $100 million by mistake?”

It was absurd. The investigator could only scoff in disbelief as Ha Si-heon calmly replied:

“As I said, I was lucky. Usually, decisions like this result in catastrophic losses.”

“And you expect us to believe that?”

“Is inexperience a crime?”

It was a ridiculous excuse.

But…

When the SEC questioned Goldman employees, every single one of them backed up Ha Si-heon’s claims.

“I warned him that ‘the game changes when the stakes are high,’ and he became strangely sensitive about it. Then the next day, he suddenly went all-in.”

“Of course, we tried to stop him. But he wouldn’t listen to a word we said. He seemed completely incapable of rational judgment.”

No matter whom they asked, the answer was the same: Ha Si-heon’s all-in investment had been a purely emotional decision. Eventually, the investigation circled back to Gerard.

“There’s a rumor inside Goldman that Ha Si-heon took this reckless gamble because of your investment terms. It’s said he was cornered into it because of the clause requiring him to cover half of any losses. Is that true?”

Gerard inwardly scoffed. Ha Si-heon, cornered? What nonsense was this?

“That’s absurd. If you ask me, he seemed to enjoy the situation.”

“He claims he acted out of pride and bravado.”

“He didn’t look like that at all to me.”

“But you admit you included a clause holding him responsible for half of the losses?”

“…That’s true.”

A bad feeling crept over him. Having answered all of their questions honestly, Gerard carefully asked:

“In your opinion, is there any possibility of insider trading? As an investor who provided him funds, I’m genuinely concerned…”

“There’s no insider trading.”

The investigator’s response was far too quick.

“So you’re saying he’s innocent?”

“The evidence proving his innocence is far too clear. Given the timeline of events, insider trading is impossible.”

“But he invested in a single stock…”

“His reckless investment decisions are certainly questionable. But he insists it was an emotional choice made under psychological pressure. Numerous testimonies support this.”

Gerard bit his lip. At this rate, he had inadvertently provided the plausibility behind Ha Si-heon’s “reckless investment.”

“What if… what if he’s acting? What if he had prior knowledge and deliberately provoked me to manipulate the circumstances?”

“Huh?”

“What if he orchestrated everything to create this appearance?”

“Oh, come on.”

The investigator dismissed Gerard’s theory with a small laugh.

“Even if we were to entertain that wild idea, insider trading is still impossible. Ha Si-heon made his move on December 11th—at that point, no insider information was available. That’s an undeniable fact.”

“Well, I understand. I also find it hard to believe this is just a coincidence…”

“Moreover, it’s rare for innocence to be proven this quickly… It’s incredible how some people are just that lucky.”

After the investigator left, Gerard mulled over his final words.

“It’s strange how his innocence was proven so quickly.”

The evidence had been too clean, too perfect. As though it had all been meticulously prepared in advance.

Just then,

Bzzzz!

His phone vibrated. The caller was none other than his father, Raymond.

[The plan has fallen apart.]

Without any lengthy explanations, Raymond got straight to the point. In stark contrast to his previous silence, his tone implied he understood the entire situation.

[At this point, nothing you do will achieve the effect you wanted.]

Raymond’s “bullet recovery” plan aimed to strike Ha Si-heon with two critical blows:

1. Restrict his capital.

2. Raise suspicions of insider trading through fund withdrawals.

However—

[That man has already pocketed a bullet worth $100 million.]

“…That’s true.”

[And the timing of the redemption isn’t suspicious either.]

“…Yes.”

If Gerard were to withdraw his funds now, no one would find it odd.

Pulling money out of a fund that had made excessive profits was a perfectly natural action. After all, such success could negatively impact a fund manager’s psychology—either leading to arrogance or overwhelming pressure.

Contrary to his original intention, Gerard’s decision to withdraw the funds would likely be seen in that context.

[So what will you do? Redeem or stay?]

Only two choices remained for Gerard now. A neutral stance was not an option. But the words didn’t come out easily.

Gerard clenched his fist tightly. His nails dug into his skin, but he had no time to feel the pain.

“I’m… not sure.”

For the first time since becoming an adult, he couldn’t provide a clear answer to his father’s question.

[For now, it’s better to redeem. Staying in the fund sends a signal that you completely trust him.]

If Gerard remained in the fund, it would look like he believed in Ha Si-heon’s ability to keep earning high returns.

[It would mean you’re essentially vouching for his skills.]

“…I know.”

[There’s something you haven’t told me yet, isn’t there?]

“…Yes.”

[What is it?]

After a moment’s hesitation, Gerard confessed the truth.

“He inserted a deferred payment clause. Even if I request a redemption now, I won’t actually receive the funds for three months.”

[…]

A heavy silence hung over the line. Finally, Raymond’s low voice broke the pause.

[If you redeem early, it means he can freely move that unclaimed money as he pleases.]

“…Exactly.”

[It must be a considerable amount.]

Currently, Gerard’s funds, combined with those of other investors, totaled about $150 million.

Effectively, they were lending that enormous sum to Ha Si-heon interest-free.

“If I redeem now, he’ll keep all the profits earned over the next two months. But if I stay, I’ll only give him half of those profits.”

[In exchange, you’ll be seen as publicly supporting him.]

“…Yes.”

Gerard had no choice but to pick one. Either give Ha Si-heon the money or give him credibility. Both options made him feel sick to his stomach, but there was no way out.