Golden Spoon Investment Portfolio - Chapter 286

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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286. The ripple effect might actually be even greater than before.

Rodney, the Chief Investment Officer of Quantum Fund, sat at his desk reviewing the multiple monitors arrayed before him when he noticed something and his eyebrows twitched slightly.
He then extended one arm and pressed the intercom switch, summoning his secretary Rose.

“Rose. Contact Ian and tell him to come to my office right now.”
[Yes. Understood.]

Shortly after, when a knock sounded at the door, Rodney looked up and responded.

“Come in.”

Ian entered through the door and approached closer, speaking.

“You called for me.”

Rodney, still seated in his chair, leaned back and asked.

“Copper prices are plummeting in both spot and futures markets. Why the sudden collapse?”
“I was actually about to report on some fascinating developments.”
“Tell me what it is.”

Ian spoke with a meaningful gleam in his eyes.

“It appears that Eldorado Fund is attacking Sumitomo Corporation.”
“What?”

Rodney immediately straightened his posture, his expression turning grave.

“Explain in detail.”
“You’re aware that Eldorado Fund has been short-selling Sumitomo Corporation on the Tokyo Stock Exchange.”
“Of course.”

Rodney nodded slightly.
Tokyo was the third most important and largest financial market after New York and London.
It was only natural that Quantum Fund would be tracking the massive short-selling campaign against Sumitomo Corporation, one of Japan’s five major general trading companies, being conducted on the Tokyo Stock Exchange.

“Without any particular bad news, I found it strange that they were short-selling such a massive amount exceeding a hundred billion yen.”

A sudden thought flashed through Rodney’s mind, and his eyes widened.

“Could it be that the Eldorado Fund is deliberately driving down prices to strike a blow against Sumitomo Corporation, which holds a substantial position in copper?”
“You’ve grasped it immediately, as expected. That’s precisely it.”

Upon hearing the answer, Rodney’s expression hardened slightly.

“Multiple hedge funds, including ourselves, have attempted to attack them before, but Sumitomo Corporation’s grip on the copper market is so firm that we’ve failed repeatedly. I’m skeptical whether this will succeed as intended.”
“Perhaps this time it might actually be possible.”

Rodney’s face showed bewilderment at the unexpected remark, and he asked.

“What do you mean?”
“Sumitomo Corporation was able to manipulate the copper market so freely largely because of their collusion with Chinese Companies, who are both the largest producers and consumers.”
“That’s true.”

Rodney spoke with a bitter expression as unpleasant memories surfaced.

“No matter how many sell orders we placed, Sumitomo Corporation and the Chinese Companies absorbed them all and adjusted production volumes, so we ultimately suffered considerable losses and had to withdraw.”
“The Chinese Companies that were closely aligned with Sumitomo Corporation are now selling copper alongside the Eldorado Fund.”
“Is that really true?”

Rodney asked again, his tone skeptical, and Ian nodded in response.

“Upon investigation, it turns out the Chinese Companies have been steadily selling since last month. Then, when the Eldorado Fund executed massive short-selling in the futures market, they seized the moment and sold 150,000 tons of physical copper all at once, amplifying the price decline even further.”

Rodney was startled upon hearing this and raised his voice.

“They sold 150,000 tons of physical copper?”
“Yes. The critical point is that it doesn’t stop there—the Chinese Companies continue to dump copper as if conducting a fire sale. This is intensifying market fears that copper prices could fall even further.”

Rodney’s eyes gleamed as he instinctively sensed that something massive was unfolding.

“How is Sumitomo Corporation responding?”
“They’re placing buy orders in both physical and futures markets, absorbing the flood of selling.”
“Even with the Chinese Companies shorting, they’re buying alone?”

As Rodney’s brow furrowed, Ian nodded and picked up the thread of conversation.

“Yes. Before it surged, we confirmed they’d purchased nearly 200,000 tons of physical copper.”

Rodney’s eyes gleamed with intrigue as he stroked his chin thoughtfully.

“This is developing in a most entertaining fashion.”

Ian seized the moment, stepping closer to the desk with palpable urgency.

“This is an opportunity.”

Rodney glanced upward, his gaze settling on Ian.

“You’re suggesting we join this game?”
“Yes.”

Ian answered immediately, his eagerness unmistakable.

“Predictions of copper price declines due to oversupply and weakening demand have circulated since last year. Sumitomo Corporation has artificially propped up prices all this time, but now that even the Chinese Companies—their steadfast allies—have turned against them, they’ll struggle to hold the line much longer.”
“Without the Chinese Companies backing them, Sumitomo certainly won’t wield the same influence.”

Rodney crossed his arms, his demeanor turning optimistic.

“I’m not sure how they discovered it, but the Eldorado Fund undoubtedly spotted the fracture in their collusion and executed a bold short position. That much is certain.”
“Mm. Likely so.”

Seok-won had a habit of orchestrating the unexpected and pulling off audacious bets with remarkable success, which always caught Rodney off guard. This made him instinctively believe the Eldorado Fund’s movements were calculated with meticulous precision.

“Given how events are unfolding and the Eldorado Fund’s relentless aggression, they clearly assess their winning odds as exceptionally high. If we join before it’s too late, we’ll certainly reap substantial profits.”

Ian pressed his case, convinced of Sumitomo Corporation’s defeat.
Rodney remained seated, tapping his fingertips against the desk as he deliberated briefly.
Then, having reached his decision, he lifted his gaze to Ian standing before him and issued his directive.

“Very well. Since we took losses last time, settling the score this round wouldn’t be unwelcome.”
“Precisely.”

Ian’s face brightened as he responded.

“Coordinate with the Eldorado Fund and execute sales on both the futures and spot markets.”
“How much should we wager?”

Rodney paused briefly before asking.

“How much has the Eldorado Fund committed?”
“Aside from their short selling of Sumitomo Corporation stock, they appear to have established short positions exceeding one billion dollars in the futures market.”

Rodney flashed a brilliant smile and spoke with amusement.

“Then we’ll each commit one billion and push two billion dollars into the market. We’re legendary hedge fund operators—we can’t afford to fall behind the Eldorado Fund, can we?”
“Absolutely right.”

Ian responded with a matching smile, already envisioning the effortless profits they’d reap by riding the wave the Eldorado Fund had set in motion.

“Then I’ll initiate the betting immediately.”
“Go ahead.”

Rodney nodded his head.
As Ian left the office burning with determination to avenge their previous failure, Rodney remained alone, leaning back in his chair with his eyes fixed on the monitors.
He gazed intently at the copper spot price teetering precariously near 2,600 dollars, then lifted one corner of his mouth into a smile.

“So he’s been scheming something like this all along. Quite the entertaining fellow, I must say.”

* * *

Though the early dawn was still dark, the luxury villa that Seok-won had moved into after leaving the Park Family Residence blazed with light.
Beethoven’s Symphony No. 3 “Eroica” poured from the speakers, its lyrical yet grandiose composition harmonizing perfectly with the cold morning air.
Seok-won stood before an espresso machine installed in one corner of the spacious kitchen, watching the rich aroma of coffee grounds drip into a mug with a whirring mechanical sound.
He then lifted the mug to his nose, inhaled the fragrance with a satisfied expression, and crossed the living room toward the room on the left.
On the large U-shaped solid wood desk inside the room sat four bulky CRT monitors connected to the latest Intel Pentium Pro computer, arranged in a neat row.
Beside them was even a Bloomberg terminal installed to receive real-time market information.
Moreover, a side table on the left held a printer and fax machine, creating a perfect workspace where everything could be handled within arm’s reach.
When Seok-won decided to leave the Park Family Residence and began interior construction, the very first thing he did was set up this personal trading room.
Just as he set down the steaming mug on the desk, his mobile phone beside the mouse rang.

“Hello.”

As Seok-won answered, Landon Shore spoke with a slightly excited tone.

[Boss! Are you watching the copper prices right now?]

Seok-won tilted his head with a puzzled expression.

“No. I stepped away for a moment—has something happened in the meantime?”

As he spoke, Seok-won held the phone to his ear and shifted his gaze toward the monitor displaying both the copper spot and futures price charts.
The copper futures and spot prices, which had plummeted to $2,601.9 before stabilizing somewhat as Sumitomo Corporation mounted an aggressive defense, had suddenly dropped sharply again.

[LME Copper Cathode : 2,571.9 USD ▼ 128.3]

“What? How did this happen?”

Startled by the sight, I asked, and Landon Shore immediately answered my question.

[The Quantum Fund has begun selling copper alongside us, and now all the other funds that were watching are piling in with shorts simultaneously.]

Seok-won, immediately grasping the situation, broke into a dark smile.

“Ah, I see. The piranhas have caught the scent of blood and are swarming in.”
[Haha. Piranhas—that’s a perfect analogy indeed. You’re right. Unlike other times, now that the Chinese companies are selling copper too and Sumitomo Corporation is showing signs of wavering, they all seem to think this is an opportunity to make a quick profit.]

Watching the enormous volume of sell orders pouring in like a dam bursting in real time, Seok-won spoke.

“Hedge funds have an uncanny ability to sniff out money—there’s no way they’d just sit idle watching this.”
[That’s true. Still, given what Sumitomo Corporation has shown us so far, everyone was initially taking a wait-and-see approach. But once the Quantum Fund placed massive sell orders simultaneously in both futures and spot markets, the atmosphere changed dramatically.]

Seok-won conjured up images of George Hamilton and Rodney, his successor as CIO, in his mind.

‘They’re formidable opponents indeed.’

When they were allies like now, they were more reliable than anyone else, but if they became enemies, they would be truly formidable adversaries.
It was hedge funds centered around George Hamilton who had been the primary culprits in triggering the currency collapse and foreign exchange crisis across South Korea and Southeast Asia.
That being the case, when the IMF crisis struck and South Korea found itself on the brink of collapse, I might have to face off against hedge funds like the Quantum Fund, which would descend like jackals to claim their spoils.

‘I’d prefer to avoid confrontation if possible, but if it’s unavoidable, I’ll have to crush them thoroughly so they never dare challenge me again.’

Seok-won’s eyes gleamed coldly as he adjusted his grip on the phone and spoke.

“If other hedge funds have joined in, we can consider this battle over.”
[No matter how formidable Sumitomo Corporation is, they won’t be able to withstand attacks from all directions.]

Landon Shore agreed with his assessment.

“That’s right. Once word spreads about the massive losses they’ve suffered in copper, Sumitomo Corporation’s stock price—which had rebounded through share buybacks—will collapse again.”

[That’s highly likely.]

Landon Shore burst into hearty laughter as he spoke.

[Ha ha. The boss’s bet has hit the mark perfectly once again.]

Seok-won smiled faintly and replied.

“We haven’t seen the final results yet, so let’s keep our guard up until we lock in the profits.”
[Of course.]

After ending the call and setting down his phone, I calmly watched as the dikes Sumitomo Corporation had built were completely swept away by the overwhelming tsunami of sell orders flooding the market.
Observing the copper price plummeting vertically like a cliff collapse, I murmured softly, contemplating the nuclear-grade shock about to hit the market.

“This might actually have a bigger impact than I originally expected.”

Watching the market’s reaction prove even more violent than anticipated, I raised the mug of richly aromatic coffee to my lips, eager to see just how far copper prices would fall.

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This chapter was translated by Lunox Novels. To support us and help keep this series going, visit our website: LunoxScans.com
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