7 thrilling minutes: Hedge fund manager restores Ali’s listing

In a thrilling minute, a hedge fund manager restored Alibaba’s listing transactions

Alibaba’s listing undoubtedly set off a capital carnival. The amount of financing exceeded 100 million US dollars, and it also set the largest financing amount in history. .
The head (pseudonym) of a New York hedge fund with assets under management exceeding US$100 million, who participated in Alibaba's listing that day, was interviewed by Tencent Finance and recounted the minute-by-minute capital adventure that day.
.A thrilling journey to the U.S. dollar in minutes

It took me .minutes to enter and exit the U.S. dollar. explain.
.The U.S. dollar is the opening price of Alibaba's listing. Due to the high market interest that day, the opening price finally appeared after more than 10:30 in the New York stock market. The price was already nearly higher than the issue price of the U.S. dollar. %.
In fact, the order was placed as early as 1:00 in the morning. The price of the order was US dollars per share.
Because I expected the opening price to be relatively high, I set a relatively high price.
He said that in fact, the opening price that was previously expected to be around the U.S. dollar would only reach the U.S. dollar.
But considering the high enthusiasm shown by investors during Alibaba's road show, he decided to increase the purchase price to US dollars.
Said that he has not participated in any of Alibaba's roadshows around the world because roadshows are mainly attended by large institutional investors.
The formal significance of roadshows is greater than reality. From an investment perspective, more information cannot be obtained from roadshows. Everyone has the same public information.
It is said that from the time Alibaba submitted its prospectus and raised the issue price to US dollars, it began to formally consider Alibaba transactions.
He said that usually the hedge fund where he works will participate in the transaction, so Alibaba's is no exception.
Because the buy order I placed will eventually be completed at the opening price, in order to be able to buy it, I set a price in US dollars that was much higher than the price we had previously expected. explain.
The actual situation proved that the correct judgment was made. During the inquiry process, Alibaba's stock price went up many times. Before the opening price finally came out, tens of thousands of multi-dollar buy orders became useless. No chance to make a deal.
As soon as the opening price of the US dollar appears, the buy order placed before is immediately filled at that price.
After a short period of time, you can see the price moving up quickly. In a short period of time, you can't see sell orders at all, because small sell orders are eaten up quickly after they appear.
But the market was changing rapidly and the first big sell order was seen within a few minutes.
At that time, the US dollar encountered the first wave of resistance, which was said to be a large sell order for a stock.
It is said that the stock was already a big sell order when the market enthusiasm was very high at that time.
But then this big selling order was digested by the huge buying enthusiasm and the market continued to rise.
Soon I saw that the price had arrived. I felt a little embarrassed and then quickly went down within seconds.
He immediately placed a US dollar selling order and quickly got the deal and escaped unscathed.
At that time, I didn’t have time to think carefully. It was just a subconscious reaction. Because I had thought before that if I couldn’t get more than US dollars, I had to get out as soon as possible. When I saw it, I couldn’t get up any more, so I immediately bought it.
He said that when participating in similar transactions, he usually has an expected exit price in advance and then responds promptly and flexibly according to the market situation to make quick judgments and reactions because the market changes so quickly that you have no time to think about it.
The market has undergone earth-shaking changes in just a few minutes from the purchase of US dollars to the sale of US dollars.
This transaction invested 10,000 U.S. dollars and made a profit of 10,000 U.S. dollars in fast forward and fast withdrawal within minutes. He said the returns were average compared to what he had done before.
Small and medium-sized investors have become victims
Goldman Sachs may make huge profits

Looking back, looking back on the day Alibaba went public, its stock price fell all the way after failing to rise against the US dollar. The lack of signs of a rebound could signal further downside in the coming sessions.
On the second and third trading days after Alibaba went public, its stock price continued to fall, with a cumulative decline of more than %.
I heard that many small and medium-sized investors were unable to place orders quickly due to trading system issues on the day Alibaba went public, and thus fell victim to sharp fluctuations in stock prices.
He believes that professional investment institutions use professional trading systems that are much stronger than those of ordinary small and medium investors in terms of transaction speed and stability. Therefore, he suggests that ordinary small and medium investors should not Participating in a risky investment like this.
I believe that judging from the trading volume of more than 100 million shares on the day of Alibaba’s listing, it may be related to the large amount of cash out. Alibaba’s prospectus states that % of the shares are provided to insiders to subscribe at the issue price of US dollars. These people may be able to subscribe on the day of listing. Cash out.
In addition, he estimated that the investment banks represented by Goldman Sachs that participated in Alibaba's listing also made substantial profits from transactions on the day of listing in addition to underwriting fees.
The investment bank underwriting fee is fixed. At a rate of a few percent, it is basically 100 million U.S. dollars. However, Goldman Sachs's trading department may make a lot of profits from the transactions on the day of listing.
It feels like the first wave of big selling orders may have been put out by Goldman Sachs.
Despite the thrilling minutes, he said he was still optimistic about Alibaba's market outlook. He believed that Alibaba's listing was not a good time. A few days before Alibaba's listing, the New York stock market had shown weakness and the overall market was weakening.
Judging from historical statistics, the overall market performance in each month is very poor. explain.
He believes that Alibaba may be expected to rise to a price above the US dollar in this month.
Because many hedge funds choose to open positions in the month, at the same time, before the month, some irrational factors in the market have basically exhausted their impact on the stock price. explain.
He said he would consider continuing to participate in Alibaba stock trading next month. (Tencent Finance Broker Zhenyu from New York)