Golden Spoon Investment Portfolio - Chapter 443

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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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443. Incidents always begin with the unexpected.

The entrance door, elegantly appointed with expensive natural marble, opened silently as Seok-won emerged from the luxury villa alongside Han Ji-sung, his attendant secretary.
His custom-tailored suit fit him impeccably, accentuating his physique without a single wrinkle, and his gait radiated unwavering confidence.
Ju Geun-sung, who had been waiting by the entrance with a Mercedes-Benz sedan at the ready, bowed deeply as Seok-won appeared.

“Good morning, sir.”

Seok-won smiled warmly in response to the respectful greeting.

“The weather is beautiful today.”

Ju Geun-sung straightened and quickly opened the car door, allowing Seok-won to settle into the rear seat with practiced ease.
The door closed, and moments later, the Mercedes-Benz glided smoothly away from the curb.
Seok-won sank into the plush leather seat, his gaze drifting indifferently across the passing landscape beyond the window.
A vibration from his pocket prompted him to retrieve his mobile phone.

“Hello.”
[It’s me, boss.]

Detecting a slight tension in Landon Shore’s voice, I furrowed my brow slightly.

“Has something happened?”
[Yes. We’re not yet certain how it will play out, but we’ve detected significant activity emanating from Washington.]
“What is it?”
[Henick, the Deputy Secretary of the Treasury, has departed for Moscow today to meet with Yevgeny Popov, the Russian Prime Minister.]

Henick, the Deputy Secretary of the Treasury, was one of the influential power brokers in the American government who had been involved in Korea’s IMF bailout negotiations.
The fact that such a formidable figure was traveling to Moscow signified something of considerable economic importance.

“What’s the purpose of the visit?”
[The yen continues its relentless decline, and Asia appears to be on the brink of another foreign exchange crisis.]

Korea had successfully consolidated its short-term foreign debt and was rapidly stabilizing as its citizens engaged in a voluntary gold collection campaign.
However, Southeast Asian nations, including Indonesia, were experiencing renewed currency volatility and a resurgence of foreign exchange crises.

[Concerned about the repercussions hitting Russia, they say he’s going to discuss countermeasures in advance.]

Seok-won nodded slightly while holding his mobile phone.

“The United States holds the most Russian bonds, and if Moscow itself wavers, the crisis could spread to Europe. It’s worth the move.”
[If Russia receives help from the United States, wouldn’t that be a serious problem?]

Unlike the worried Landon Shore, Seok-won replied with an unhurried demeanor.

“Just because they’re meeting doesn’t mean everything will go smoothly.”
[Of course, but Russia isn’t in a position to refuse American help, is it?]
“From the outside, it may look like Russia can’t afford to be picky, but the results only become clear when you open the lid.”

Sensing something odd, Landon Shore asked carefully.

[Surely you don’t think Russia will refuse American help?]

Russia, teetering under the weight of massive debt from continued fiscal deficits, should have gratefully accepted any assistance offered.

‘But the world doesn’t always turn according to natural order.’

If world affairs flowed according to reason and principle, wars and economic depressions would never occur in human history.

“Russia may have fallen now, but just ten years ago, during the Cold War, it was a superpower standing shoulder to shoulder with the United States.”
[That’s true.]
“And despite its dramatically diminished status, it still possesses nuclear weapons in numbers rivaling the United States—a nuclear superpower.”
[Are you saying Russia will refuse American help out of pride?]

At the absurd-sounding response, Seok-won replied in a measured voice.

“The Russian government wouldn’t deliberately do something so foolish.”
[Then why….]

Seok-won’s expression grew meaningful.

“But accidents always happen due to completely unforeseen circumstances.”
[…?]

Landon Shore couldn’t make sense of what was being discussed.
Meanwhile, Seok-won adjusted his grip on the phone in his hand and spoke.

“One thing’s certain—cooperation between the United States and Russia won’t happen as easily as people think. More importantly, how are we progressing with position building?”

As Seok-won changed the subject, Landon quickly gathered his thoughts and responded.
Even hearing reassurances that there was nothing to worry about, the unease wouldn’t fully dissipate, though I tucked it away in a corner of my mind for now.

[We’re moving as quickly as possible, but given the sheer magnitude of the sum, it looks like we won’t have it finalized until next week at the earliest.]
“Can’t be helped. The situation will fluctuate significantly depending on what results Henick brings back from Moscow. Let’s accelerate the timeline.”
[Understood.]

Landon seemed to remember something belatedly and opened his mouth.

[And there’s one more piece of news to report.]
“Go ahead.”
[The trial verdict for Ho-geun, who was arrested by the DEA, has come down.]

Hearing the familiar name, Seok-won’s eyebrows twitched slightly.

“The verdict came faster than expected.”
[He was arrested as a flagrant offender, and we pulled some strings to ensure the trial wouldn’t be delayed.]
“He was found guilty, of course?”
[Of course. He received a sentence of twelve years and eleven months and was remanded into custody immediately from the courtroom.]

Satisfied with the heavier-than-expected sentence, Seok-won smiled and spoke.

“He didn’t appeal?”
[He did, but the evidence is so solid that acquittal is out of the question, and a sentence reduction will be difficult to obtain.]
“That’s good news.”

Seok-won’s lips curved into a deep smile.

[Once we have results on the Russia situation, I’ll contact you immediately.]
“Do that.”

After ending the call and tucking his phone back into his pocket, Seok-won’s mind drifted to the absurdly outrageous incident Russia was about to commit.

“Great events always begin with the unexpected.”

***

Long Island, New York State, USA — LTCM Headquarters.
Jacob Wiseman, the CEO with a sturdy build and sharp, penetrating gaze, sat upon the refined office sofa positioned before the expansive floor-to-ceiling windows.
Having listened to the report from Arthur Engeron, the head of the arbitrage division seated across from him, Wiseman opened his mouth to speak.

“So Henick, the Deputy Minister of Finance, has gone to Moscow to discuss the debt issue, is that it?”

Engeron, receiving his gaze, nodded and replied.

“Yes. Furthermore, the IMF negotiating team has also entered Russia, according to reports.”
“Henick, known as the real power in the Ministry of Finance, and the IMF negotiating team moving simultaneously, then…”

Strictly speaking, they hadn’t gone together—they had simply happened to arrive in Moscow at the same time.
But since it wasn’t a particularly significant matter, Engeron let it pass without correction.

“The fact that Deputy Minister Henick has gone to Moscow must mean the United States intends to support Russia, doesn’t it?”
“He certainly didn’t go there for leisure.”

At Wiseman’s indifferent reply, Engeron leaned forward in his seat and spoke.

“The Russian bond spread, which has widened considerably due to economic deterioration, will narrow immediately once American and IMF support becomes tangible, returning to normal ranges. This is an opportunity!”

Wiseman, his wrist adorned with a gleaming gold Rolex, regarded Engeron—whose body trembled with barely contained excitement—with narrowed eyes.

“You’re suggesting we purchase Russian bonds?”
“Right now, immediately, and we must accumulate as much as possible. By now, others will have obtained this intelligence as well, and if we hesitate, we’ll lose the opportunity!”

Wiseman reclined against the sofa’s backrest and spoke.

“If I recall correctly, we already have a considerable position in Russian sovereign debt, don’t we?”

Frustrated by Wiseman’s reluctance to show the desired reaction, Engeron pressed his case once more.

“Didn’t you yourself say that to generate substantial profits, one simply needs to deploy more capital?”
“That’s true enough.”
“Given the magnitude of the spread differential, we should be able to secure at least 10% or greater returns!”

In that instant, Wiseman’s eyes gleamed with interest.
A 10% return from government bond investments was no trivial gain, so his curiosity was naturally piqued.
However, rather than rushing to a decision, Wiseman adopted a cautious approach.

“Is there no possibility that the forecast could be wrong?”
“Russia is facing difficulties in the immediate aftermath of the Soviet collapse, but it remains a nuclear superpower. Moreover, it’s an oil-producing nation with petroleum and natural gas reserves comparable to the Middle East. With American and IMF assistance, Russia should be more than capable of weathering this crisis.”

Engeron spoke with unwavering conviction.
Wiseman himself had never entertained the notion that Russia—a nuclear-armed superpower that had once stood as America’s rival—would crumble.
Though S&P had drastically downgraded Russia’s credit rating, he regarded it as fundamentally different from Asian nations like Korea, which were grappling with economic crises.

‘Russia cannot be lumped together with those countries.’

Beyond that lay another pressing concern: LTCM’s profit margins were eroding with each passing month.
The spectacular returns LTCM had posted over recent years had spawned countless competitors attempting to replicate its arbitrage strategies, naturally shrinking the pie available for everyone.
With several failed bets and mounting losses in this environment, there was a genuine risk of posting the fund’s first deficit this year.

‘If this continues, even if I barely avoid losses, the track record of double-digit annual returns will be shattered.’

The winning formula that had sustained his success—dazzling returns that earned Wall Street’s applause, attracting ever-greater leverage to amplify profits—was unraveling.
Wiseman, who understood Wall Street’s nature better than most, could easily foresee that the moment returns declined, his LTCM would be reduced to just another fund among countless others.
To avoid falling from a galloping horse, he needed to demonstrate at least maintained returns at this critical juncture.
Especially after confidently returning all investors’ capital, he could not afford to falter or deliver subpar results.

‘I absolutely cannot let things stand as they are.’

Muttering inwardly, Wiseman nodded toward Engeron seated across from him.

“Very well. Increase the Russian bond position by a factor of four—no, quadruple it.”
“Quadruple, sir?”

Engeron’s eyes widened in shock as he repeated the instruction.
Though he had broached the subject himself, he clearly hadn’t anticipated being told to quadruple the position, and his expression betrayed his astonishment.

“Didn’t you just say moments ago that to generate substantial profits, one must deploy as much capital as possible?”
“Well, yes, but….”

Engeron hesitated slightly.

“As you say, with Russia being both a nuclear power and an oil-producing nation, there’s no risk of collapse. If we’re going to make a bet, we might as well go all in.”

Engeron nodded in agreement, his concerns dissipating at the words.

“You’re absolutely right.”
“I’ll make calls to Goldman, AIG, and Citibank to pull in as much capital as possible. You focus on accumulating as much inventory as you can.”
“Yes, understood!”

Once the decision was made, there was no hesitation in what followed.
After exchanging a few more words, Engeron left the office with eager strides, and Wiseman muttered to himself with a cunning gleam in his eyes.

“I was already worried about where to recover our profit margins, and now these Russian bears are lending us a hand.”

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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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