A Wall Street Genius's Final Investment Playbook-Chapter 61

After bringing up the scout proposal, Raymond began to formally set the terms.

"I can't reveal the name, but it's a family office operated by a long-time client. They manage about 300 million dollars in assets," he said.

A family office is an investment firm established to professionally manage the wealth of high-net-worth individuals or affluent families, essentially a private fund.

‘I hope it's not Kissinger…'

The thought briefly crossed my mind, but the likelihood was slim.

300 million dollars is approximately 406.3 billion won.

Kissinger, although a renowned diplomat holding an honorary position, was unlikely to possess personal assets of that magnitude.

Thus, this was probably a fund managed by another of Raymond's clients.

Just as I was contemplating this, Raymond made an unexpected offer.

"You could be fully responsible for managing a healthcare portfolio worth about 100 million dollars," he said.

"Me? Manage it directly…?" I asked.

"Exactly. It's a once-in-a-lifetime opportunity," he stated.

It was an extraordinary proposal.

For a mere first-year analyst like myself to be given such authority was astounding.

As I showed interest, Raymond continued with a smile, "As you know, even the most talented usually waste years."

In that moment, the wasted times of my past life flashed before my eyes.

People think investment bank employees directly engage in securities trading, but that only applies to traders.

Analysts like me follow a different path.

First, you join an investment bank like Goldman and spend two years building fundamentals.

Then, you move to a hedge fund and spend another two years doing whatever the Portfolio Manager instructs.

Only in the fourth year are you allowed to propose investment ideas, but you still can't manage actual assets.

Instead, you create a "shadow portfolio" to estimate potential profits and losses if investments were real.

It's only around the sixth year that you get to handle client funds, and from there, the scale of management depends on performance.

It usually takes 7 to 9 years to be entrusted with a portfolio worth 100 million dollars.

Raymond was offering to skip all these steps.

"Am I becoming a sole PM? Or a junior PM, or just an assistant analyst?" I asked.

"I'll see if you can start as a junior PM," he replied.

"But is that even possible? I'm just a first-year…" I expressed a healthy level of skepticism without being rude.

Raymond nodded in response.

"Usually, it's impossible, but it's different with a family office. If I vouch for your capabilities, there should be no problem."

He then began listing more enticing conditions.

"The starting salary is 300,000 dollars. That's just the base salary, with bonuses set separately," he explained.

Bonuses are usually equal to the annual salary, so roughly 600,000 dollars.

Converted to Korean won, that means an annual salary of about 800 million won.

"It's not easy to find a place that would accept a high-risk, high-return strategy, but here, such regulations can be substantially relaxed."

This guaranteed a degree of autonomy.

"Not only that, but you'll also represent our client at various investment events and gatherings, places typically inaccessible to regular analysts."

"……"

"There's no non-compete clause, so you can set up your own fund whenever you want. My predecessor did just that, with the client providing 100 million dollars in seed money."

He even hinted at providing the initial capital to get started.

"That's interesting…" I feigned keen interest, occasionally asking questions, but inside, I struggled to suppress my laughter.

Raymond's true intent was clear to me.

This was a trap.

‘It's similar to Gerard's tactics.'

Gerard also laid traps and cunningly lured others, apparently a trait he inherited from his father.

Of course, Raymond would keep his promises.

He'd offer a high salary, the authority to manage a substantial amount, and invitations to various wealthy events.

And just when I started to feel satisfied with my new role, he would suddenly announce my dismissal.

His real aim was singular—to disrupt my career path.

‘It seems he's trying to knock me off the two-and-out system.'

In Wall Street, investment banking is somewhat akin to a two-year college.

Completing two years here and building a career is considered essential.

Not completing the period is like dropping out prematurely.

Of course, there are exceptions.

If you move to a prestigious hedge fund midway, it's recognized as an early graduation.

However, family offices are different.

Within the hierarchy of Wall Street, family offices are considered the lowest tier.

They are relatively smaller compared to other hedge funds and are more associated with the image of being employed by the wealthy rather than competing on merit.

If I were to succumb to the immediate temptation and move to a family office?

It would be like a player who once dreamed of the major leagues suddenly becoming a local baseball team coach.

From the moment of such a move, the path back to the mainstream becomes distant.

Raymond was inducing this.

He's willing to incur some initial costs to sabotage my career so that I could never again become a fund manager, indicating he still regards me as a threat.

‘What should I do…'

The standard response is to decline. It's foolish to walk into a trap knowing it's a trap.

However, my thoughts are slightly different.

There is nothing in this world that is useless. Traps are no exception.

This is perfect for accessing the necessary information…

Don't forget.

The real reason I want to meet attorney Mosley.

To obtain information on Theranos.

I need to expose that Theranos is a monumental fraud.

During this process, I must gain the trust of Theranos investors and have them redirect their investments to me.

My ultimate goal is to raise 10 billion dollars at once.

The moment I reach that target, I plan to launch the fund.

In this case, I don't need to complete two years at Goldman.

The most important thing is the initial AUM, the assets under management.

The amount will dictate the evaluation.

If only a few hundred million are raised, I'm just a dropout who opened a chicken restaurant after quitting.

But starting with a 10 billion dollar fund is like graduating as valedictorian from Harvard at 15 and immediately launching a unicorn company.

For all these plans, I must uncover the evidence of fraud…

That won't be easy.

Theranos is a privately held company that hasn't gone public.

This means they are not obligated to disclose information to the public.

They only disclose information to investors.

If the family office managed by Mosley's client is investing in Theranos, then avoiding it just because it's a trap isn't wise.

"What do you think?" Raymond asked, looking at me expectantly.

"Um…?" I appeared to ponder, resting my chin on my hand and maintaining silence.

Then, I sighed slowly and began to speak.

"I'm sorry, but I have to decline. I can't leave Goldman right now. I haven't completed the period, and if the move doesn't fit well, it would be disadvantageous for my career…"

I laid it out honestly.

I was afraid to move because I feared a break in my career.

Showing even this level of doubt makes them suspect me less.

Raymond, anticipating I would say something like this, immediately began to persuade.

"It's strange that you insist on such a conventional path. I heard you prefer high risk, high return."

"That's true, but the risk here is too great."

"The reward is substantial, too."

"Well, to be honest, the return isn't enough to take on such a risk. I can manage funds anytime."

I was already managing client money through a makeshift fund.

The reward of ‘being able to invest right away' holds no merit for me.

"I'd consider it if it offered an experience I couldn't get at Goldman…"

"What might that be?"

"I'm very interested in the venture side. If I could apply my algorithm to unlisted startups, I could maximize profits. But currently, it's hard to access such opportunities…"

"Fortunately, half of the portfolio I mentioned is in ventures. The owner prefers to participate in angel investments or series rounds."

This means there's a high chance they've also invested in Theranos.

Most of the investors I know are Mosley's clients.

I pretended to ponder a bit more and then sighed deeply.

"I'm sorry. Honestly, I'm tempted, but… the risk is too great."

"I thought you were confident in your skills, but maybe not."

"It's not just about skills. Even if I perform well, the client might not like me and I could get fired. I'm a bit rough around the edges…"

Though I declined verbally, I deliberately left a lot of room for persuasion, as if a little more could sway my heart.

I muttered thoughtlessly, "Unless there's a trial period…"

"A trial period?" Raymond questioned.

"If we could spend about half a year dipping our toes in, syncing our rhythms… Perhaps advising on the actual portfolio during that time," I suggested.

As soon as I made this proposal, I vehemently shook my head.

"No, that might be difficult too. Goldman wouldn't allow it."

"Not necessarily," Raymond countered.

"If you really want it, there's a way."

"But according to internal rules…"

"Of course, it wouldn't be the usual way," he admitted, a smile curling at the corners of his mouth.

Yes, with Raymond's connections and financial power, persuading Goldman wouldn't be an issue at all.

"Still… may I take some time to think it over? It’s quite a sudden offer."

"Certainly. I hope you’ll consider it favorably."

"Yes, I will do that."

I should pretend to deliberate for about three days.

Accepting immediately would raise suspicions on their part.

To make them believe I've fallen into the trap, I need to appear as though I'm carefully testing the waters.

‘Have I set everything I need?'

If so, I can maintain my place at Goldman while providing ‘advice' to the family office.

This means I can extract information from Theranos without jeopardizing my career.

The biggest task seems resolved.

It might be time to tackle the second challenge: preventing Gerard's redemption.

Well, it’s not difficult.

Raymond's trap has made things much easier.

The key is how to naturally bring up the topic…

Luckily, Raymond opened his mouth first.

"By the way, about that redemption clause. Couldn’t we make an exception just this once?"

Raymond's words carried a subtle pressure.

He was suggesting easing Gerard's redemption terms as a trade-off for arranging such a cushy position for me.

However, I firmly drew the line.

"That's impossible. As a fund manager, I can't set a precedent of breaking regulations under the guise of personal connections or requests."

Rules are rules.

Especially rules related to fund management; there should be no exceptions.

I nailed that point down and once again faced Raymond squarely.

"May I ask why you wish to redeem?"

I gave a bitter smile, filled with disappointment.

"Surely you don’t think I lack the capacity to manage a 150 million dollar fund…"

Raymond was momentarily flustered.

Only now did he seem to realize the impact of his current question on his original plans.

The bait he threw at me was a 100 million dollar portfolio, and I haven’t bitten yet.

What if he requests a redemption now?

It essentially means Raymond does not trust my abilities.

I can't resign from Goldman and switch jobs for someone who doesn't fully trust me. freewёbnoνel.com

The trap turns to nothing.

Realizing this, Raymond quickly elaborated.

"That's not it. Your capabilities are certain, but Gerard is still young. Seems he has a lot of desires now that he has significant funds."

It's not because he doubts my abilities, but because Gerard, in his prime, wants to splurge.

I looked Raymond straight in the eye and said forcefully, "Even more reason for me to oppose. According to my future investment plans, I can achieve a minimum return of 300% within a year. To withdraw funds just for entertainment expenses is something I cannot condone as a professional asset manager."

"……"

"Of course, if you don’t trust my abilities, there’s nothing I can do…"

I reiterated the point.

Withdrawing funds now would definitely imply distrust in my abilities.

I couldn’t rashly change jobs just based on someone's word.

‘This is how it unravels again.'

Traps have their uses too.

I knew that, but this is the first time I’ve utilized a trap in such a manner.

I'm essentially staging a kind of hostage situation.

‘If you want to install this trap safely, tie up the funds for a year.'

Redemption or trap.

It has to be one or the other.

I looked straight at Raymond and asked, "What will you do?"