Chapter 187: News Agencies

After the breaking news ended, I turned my gaze toward Lisa and Grant.

“Is it correct that the total assets we hold amount to $1,013.4 billion, combining the $925.4 billion gained from this investment with the $88 billion not included in this investment?”

“There have been some price fluctuations in certain assets, but it shouldn’t be significantly different.”

Lisa nodded.

“I have a use for about $200 billion of this, so set that aside separately and form a new position with the remaining amount.”

“Excluding $200 billion from $1,013 billion leaves us with around $813 billion. Do you perhaps…… have a specific place in mind?”

Grant, now almost habitually, asked for my opinion.

Since following my instructions had never led to failure.

He seemed to trust me more than himself.

I pointed with my finger to the breaking news on the screen.

[Bank of England Announces Short-Term Interest Rate Freeze and Additional Liquidity Supply]

[ECB Announces Liquidity Support Package for French and German Banks]

“I believe the post-Brexit market will go beyond a V-shaped rebound…… and head toward a K-shaped recovery.”

“A K-shaped recovery? You mean…… only top-tier companies and assets will recover, while the rest collapse?”

As expected of a professional, he understood my words in one go.

“While a V-shaped rebound may occur on the surface, in reality, the recovery speeds of assets are likely to diverge drastically. We’ve seen this in the Brexit crisis too. There was a rebound, but it wasn’t a general recovery—only certain assets surged.”

Lisa continued.

“If I understand you correctly…… Brexit might not just be a short-term shock but a structural turning point?”

“Exactly.”

I turned my attention to the world economic indicator board displayed on one side of the trading room wall.

“Post-financial crisis recoveries often follow an L-shaped, U-shaped, or V-shaped pattern. But this time, it will be different.”

The entire market fell simultaneously, but the recovery will only be layered for a select few.

Only the top 10% of nations and corporate assets will survive, leaving the rest behind.

Grant asked, looking intrigued.

“Is there a structural reason for this?”

I showed Lisa and Grant the materials I had prepared before coming here.

“There are several reasons I’m considering. First is the differentiation in monetary policy. Countries like the U.S., Germany, Japan, and Singapore already have firm autonomy in interest rates and liquidity control, but some Southern European and Southeast Asian nations lack sufficient foreign reserves and central bank independence. So, when a global shock like this hits, they lack the means to recover.”

I paused for a moment before continuing my explanation.

“The second reason is corporate financial health.”

“Post-Brexit, concerns over currency fluctuations and trade barriers will likely directly impact the supply chains of small and medium-sized enterprises in the UK and EU. Especially for export-dependent manufacturers, currency losses and reduced trade will lead to severe liquidity crises.”

Lisa chimed in.

“I also think the sharp drop in the pound after the Brexit vote could worsen the financial structures of import companies in the UK.”

A drop in exchange rates naturally leads to price increases and contract cancellations.

“On the other hand……”

I pointed to the U.S., Germany, the Netherlands, and several Asian financial hubs on the screen.

“These countries already have independent capabilities in the global value chain and high capital market accessibility. Ultimately, large listed companies in these countries will become safe havens for global capital.”

Grant, as if remembering something, asked,

“So, post-Brexit, the EU capital market will shrink, and the U.S. will become the new center?”

“Exactly. Especially London, which has been Europe’s financial hub, will likely see its role dispersed post-Brexit to places like Luxembourg, Frankfurt, and Amsterdam, with New York filling the gap. Naturally, capital within Europe will also polarize.”

Lisa nodded.

“Then our investment strategy should focus on companies aligned with the U.S. axis.”

I smiled and raised a finger.

“Right. In the K-shaped recovery phase, we need to focus on three main areas.”

I flipped to the next page of the materials displayed on the screen, revealing detailed strategies.

[Investment Strategy for K-shaped Recovery]

1. Top-tier Recovery Assets: Build Concentrated Long Positions

U.S. Tech and Financial Stocks

In the global uncertainty post-Brexit, capital will ultimately flow to the U.S. With the combined effects of a strong dollar and capital inflows, Wall Street investment banks, insurers, and asset managers will enter a new era of prosperity.

Global Consumer Brands

Consumer goods companies with strong currency defenses and diversified supply chains. Examples: LVMH, Nestlé, Procter & Gamble, Unilever.

EU Beneficiaries

German and Dutch industrial stocks.

Post-Brexit, Europe’s logistics and financial centers are likely to shift. During this transition, German manufacturers and Dutch logistics companies…….

2. Bottom-tier Assets: Convert to Short Positions

UK Small and Mid-sized Retail and Import Companies

Cost increases due to currency plunges, blocked access to the EU market, workforce exodus…….

PIIGS (Southern Europe)

Italy, Spain, Greece, etc., lack financial autonomy…….

Some Eastern European Emerging Market Currencies

Weakness linked to the pound and concerns over reduced EU subsidies will impact investor sentiment…….

3. Risk Hedging and Cash Conversion Strategy

Reduce holdings in traditional safe-haven assets like gold and U.S. Treasuries. In periods of increased volatility, use options-based strategies to cover risks.

Convert some assets into hedge structures using derivatives to remain flexible during short-term adjustments…….

After thoroughly reviewing the materials, Grant spoke up.

“……To summarize, focus on U.S.-centric assets, take short positions on UK and Southern European assets, and prioritize derivatives over gold for volatility hedging.”

I nodded and continued.

“In the short term, currency and trade imbalances, and in the long term, the restructuring of financial networks will divide the market. Only assets that anticipate and align with this trend will yield significant profits.”

Lisa added with a smile,

“So, our task is to establish detailed operational strategies aligned with your direction.”

“Exactly. I’ll review everything carefully once you’re done. Send the finalized positions by email.”

“Understood, sir.”

With that, I concluded the meeting.

I once again commended Lisa, Grant, and the traders involved in this project.

Then, Seong-hwan and I boarded the plane.

Dojin Industries.

Knowing I had returned,

Executive Director Oh Seong-hak came to see me.

“I heard your trip to New York went well.”

“Your expression tells me you’ve heard roughly how much we earned.”

“I’ve not only heard but also seen it directly.”

Since Oh Seong-hak directly manages Trinity Holdings, the holding company for our diversified hedge funds, he must have seen the swollen accounts.

“I’ve set aside $200 billion separately, which can be used for supporting small and medium-sized suppliers and establishing joint ventures.”

Oh Seong-hak shared his thoughts on the matter.

“The $200 billion will not be directly transferred to the existing DJ Capital account but will continue to operate through the hedge fund channel.”

Currently, the structure consists of 50 hedge funds, each with separate management and legal entities.

This minimizes any association with Dojin Tech.

“Private equity-style investment…… not a bad approach.”

“How should the equity be distributed?”

“As I mentioned, proceed with a 50-50 split.”

Oh Seong-hak cautiously continued.

“Rather than that, to prepare for any eventuality, securing 51% of the equity might be better. The partner companies won’t be able to resist much.”

Oh Seong-hak’s suggestion was to secure controlling interest.

A conservative approach to prepare for exceptional situations like management conflicts or strategic disputes.

I immediately shook my head.

“There’s no need to go as far as 51%.”

Seeing Oh’s puzzled expression, I added the reason.

“The moment we…… or rather, the hedge funds hold 51% of the equity, outsiders will view the partner companies differently. They’ll think, ‘The company has a separate owner.’ This could lead to restrictions in government or public institution collaborations and make partner companies hesitant in future technology transfer agreements or external investments.”

Seong-hwan, who was listening, nodded.

“If they’re seen as lacking technological independence, it could indeed limit global partnerships.”

“There’s something even more important.”

“……?”

“If we take 51% of the equity, the partner companies’ motivation might weaken. Instead of the mindset, ‘I need to develop this technology myself,’ they might become passive.”

Finally understanding my point, Oh and Seong-hwan nodded, and I continued my explanation.

“What I want isn’t just a simple technology partnership. I want to create partners who proactively develop technology and can survive independently.”

Though they understood my words,

Oh still seemed hesitant.

Knowing what that silence meant, I spoke first.

“Of course, I’m aware there are risks.”

Holding only 50% of the equity meant

we wouldn’t have full legal control.

“That’s the issue. During the technology transfer phase, it might be fine, but once revenue starts flowing, some partner companies might become overly ambitious. Without board control mechanisms in place, if such a situation arises……”

“There is a way.”

I firmly cut him off and added an explanation.

“Although the equity split is 50-50, the board composition will be predefined and managed. Including one outside director recommended by us. If we secure three out of six board seats, we can maintain joint decision-making power. The articles of incorporation will stipulate that both parties must agree for any major decisions to pass.”

“……An equal structure with consensus decision-making?”

Seong-hwan seemed familiar with this structure.

“Right. Separate from the general shareholders’ meeting, ensuring board decision-making power will build mutual trust. And by not exerting excessive influence while maintaining sufficient checks and balances, the partner companies will feel less burdened.”

Seong-hwan added,

“That way, even without controlling interest, we can still participate in practical governance.”

“Exactly. What’s important isn’t control but granting autonomy and responsibility based on trust.”

That way, the AI semiconductor ecosystem I envision will operate stably,

and we can quickly push Ahsung out of the semiconductor market.

Oh also nodded in agreement.

“Then we’ll proceed as discussed, and the funding sources for each fund will follow the existing circumvention flow.”

“Let’s do that.”

Just as I thought the conversation was wrapping up,

Oh Seong-hak seemed to have more to say.

He brought up another topic.

“Oh, and about the news agencies……”