[263] Secret Gallery 1
New York Miracle was rolling with mediocre returns without major changes. It is also because of the management philosophy of Rachel Arief, who is in charge, of pursuing zero loss rather than high risk, high return.
“James Howard. We try not to touch derivatives as much as possible.”
“Why? Right now, there must be no place to invest other than derivatives on Wall Street, right?”
I asked with a smile, but her hard expression didn’t ease.
“Do you know how many hedge funds are running with the money of big investors? There were about 500 10 years ago, but now there are over 10,000. All these guys are messing with derivatives.”
She started getting agitated.
“Private equity funds are rather gentle. This side judges corporate value, buys undervalued companies and resells them. At least there is an entity called a company.”
“Still, high returns are derivatives. You can’t just ignore it because of risk aversion, can you?”
Oh Se-hyun said as if she was a little frustrated, but Rachel shook her head stubbornly.
“If a derivative product is twisted twice, the only person who can clearly draw the substance is the person who made the product? The rest are fire moths that jump at one dividend.”
“Then why don’t Rachel try making derivatives herself? It is a product that knows its true nature very accurately.”
He seemed a little taken aback by the unexpected proposal, so he shook his head.
“Our Miracle is no good. If you want to create your own derivatives, you need to get approval from ISDA (International Swaps and Derivatives Association).”
Given the size of Miracle, approval is not that difficult. However, if you see them refusing to make excuses like this, you have no idea at all.
“Our priority is to protect our customers’ money by investing in sound corporate blue-chip stocks and reliable bonds.”
When Oh Se-hyun was about to open his mouth, I held his hand.
I trusted her to make the right decision. You don’t have to take all the risks anyway. Because another powerful blow is coming.
“Rachel. So if you trust my judgment, what about this?”
“Tell me, Howard. I always trust Howard’s judgment.”
Her eyes twinkled.
“Do not touch derivatives of currency, interest rate stocks, and only buy credit derivatives, especially Collateralized Debt Debt (CDO).”
Rachel’s sparkling eyes turned gray in an instant.
It is understandable that she presented the most dangerous product to her, who puts safety first.
“Products based on mortgages are hot right now. But you also know that products whose underlying assets are bonds are the most risky, right?”
“of course. In my judgment, the next 2 years are unstoppable. You won’t be confident after 2 years, so just roll for 2 years.”
I can’t reverse the words that I trust my judgment, so I accepted it meekly.
“What percentage?”
“My estimate is about 38% return over two years. Make your decision considering the overall rate of return of Miracle.”
Although reluctant, Rachel’s expression brightened as she informed her of the specific rate of return and entrusted her with the amount of investment.
“okay. I’ll trust Miracle Boy’s judgment once again. But I don’t think you’ve come all the way here to address such trivial things. You check the investment details by e-mail every day, don’t you?”
“Our Miracle Boy is going to do art this time, so Rachel needs some help. haha.”
“what? art?”
Rachel looked a hundred times more surprised than when she told her to invest in derivatives.
* * *
“What makes things so complicated? you can just buy it Howard You deserve to be a super collector. Just buy a mansion in New York and fill it with paintings. Why bother taking over the gallery?”
When Rachel heard about the painting acquisition process, she put on a look of incomprehension.
“Anyone who has a painting I want to buy will never sell it to me. So I have to appoint an agent…. Please find a suitable place. Rachel knows a lot of rich people, right? Those rich people, of course, will collect art. It’s not difficult to get introduced to a high-level gallery through your connections.”
“Yeah, that’s true, but…”
He still doesn’t solve his doubtful eyes.
“Come on, don’t be too curious and use your strength. do you know Will the painting Howard buy skyrocket? Howard’s ability is to turn to gold with just a touch. haha.”
Oh Se-hyeon covered her mouth so she couldn’t ask any more questions.
“Since we haven’t seen each other in a while, let’s spend this evening warmly. Let’s drink Jintang.”
We were led by Oh Se-hyun’s hand and went out to the colorful streets of New York at night.
Oh Se-hyeon, who had been drinking the expensive Clos de Griffier cognac like soju while enjoying dinner, started dozing off at the second bar.
“Now, since the retired middle-aged man is sleeping, shall we, who are active duty, have a proper talk?”
“gallery?”
“no. No matter how you look at it, it seems like it’s your personal business, so there’s nothing more to talk about. I’ll find the best gallery for you. The story I want to tell is…”
“CDO (Collateralized Debt Obligation)?”
“okay. Wall Street is going crazy right now. All of them overuse CDOs and credit default swap products that use subprime mortgage loans as underlying assets. You said you couldn’t budge for two years, but I don’t know…?”
“Why do you think it is so dangerous?”
“It’s subprime. It means that it is an obvious bad loan. Bundle them together, turn them into products, and give them AAA ratings. This is a scam.”
“A successful scam is not a scam. When it fails, it is exposed as a fraud.”
“Your guess won’t be exposed for two years from now?”
“yes. Balloons do not burst easily unless pricked with a needle. The US would have to blow up the balloon non-stop for two years to inflate it.”
“The problem is, if that balloon pops, the American economy will be ruined.”
I said, looking straight at her worriedly.
“So?”
“what?”
“Rachel. You are also a US citizen, but you are a representative of our company. Shouldn’t we care more about the company’s profitability than the US economy? Leave the U.S. economy to the U.S. Treasury.”
“They’re cheating too!”
“If you are so worried about the United States, step down from Miracle’s CEO right now and jump into politics. Election funds will be pushed indefinitely. If you don’t intend to do that, just think about the company’s profitability.”
Perhaps because of my cold voice, she seemed taken aback.
“I’m sorry. I was unprofessional. You are right. I am a New Yorker, not a Washingtonian.”
“If you can’t break the flow, get in the flow. Because money and justice are parallel lines that never meet.”
“good. Then how can you be sure it’s two years?”
Actually, it was 3 years, but I thought about it and said 2 years. Since I can’t tell the truth anyway, the easiest thing to do is to ask questions as homework.
“Calculate. It will come out in two or three years.”
“Calculation…….”
“Then I must have asked the crystal ball?”
I lifted a glass of whiskey with melted ice.
Do you want to look like a mysterious Asian?
* * *
“This is Elizabeth Porter. My friends call me Bette. nice to meet you Mr. Jean.”
“Feel free to call me Howard.”
“Maybe?”
She was a tall beauty with a hint of black blood judging from her dark skin and severely curly hair.
“Howard. Bet is a genius who majored in history at Yale and art history at New York University. I am now director of the Wentworth Art Gallery.”
Rachel gently lifted her up.
“I’m the director, but I’m on the verge of closing because I can’t do my job.”
He said looking at her with a bitter smile.
“How much do you owe?”
“……?”
“I mean, how much do you need to keep the door closed?”
“Ah, $1.2 million is enough to breathe.”
“What is your annual budget?”
“It’s $2.5 million. But the income from the exhibition program…”
I put my hand up to cover her mouth.
“We will support 3 million dollars every year, so be reborn as a good gallery. OK?”
“……!”
Bette Potter opened her mouth and blinked.
“What did I say? Did I mention that today is the day to hit the jackpot? Ho Ho.”
Rachel smiled broadly and tapped the dazed Bette Potter.
“Wait a minute. What is this now…?”
After coming to her senses, she hurriedly rummaged through her bag and pulled out a bunch of files.
“This is the current state of our gallery. I think reviewing first is the order?”
I took the file she held out and tossed it to the seat next to me.
“Should I see it?”
“Are you familiar with our gallery or me…?”
“No, I have no idea. In fact, art is no different from an outsider.”
“By the way, am I weird that I don’t find it strange that I donate $3 million every year without even reviewing the gallery?”
“Does that mean you refuse favors without return?”
“There is no such thing as a free lunch.”
She is not an unrealistic woman immersed in art. Know the basics of business.
It is clear that a gallery run by such a woman is suffering from a deficit because of its size. After all, where is the art that does not suffer from a deficit?
“Who said it was free? My promise is valid only when I bring what I want.”
I held out a piece of paper with a list of works written all over it.
“Let’s take a look.”
Bette Potter grabbed the list and read it hastily.
Her face grew redder until finally she burst out in exclamation.
“Holy Shit! WOW!”
“Is it that great?”
“You mean you don’t know this? Mark Rothko Paul Cézanne Jan van Eyck Titian… and even Damian Hirst. This is all human heritage!”
“Do you know what those works have in common?”
“I told you. It is a masterpiece.”
She couldn’t contain her excitement. I couldn’t even see the name of Sunyang Gallery clearly stamped under the list.
“I buy them all. Of course we won’t sell them all, but we try to buy as many as we can. That is my condition.”
It must have been a huge shock to her. Well, if you want to buy all of that work, it will cost 340 billion won.
“Oh, I will pay for the purchase of the work in full, so you don’t have to worry about money.”
“Who would do this work more than that…?”
She looked at the paper again and her eyes twinkled.
“Sunyang Gallery! All of these works are in the Sunyang Gallery.”
“yes.”
Bette Porter’s face was full of disappointment when she checked the name.
“Give up. It is famous that the works that enter the gallery never see the light of day again. I sleep in the storage room forever.”
Now, beyond disappointment, he showed anger.
“It’s a notorious gallery that never exhibits masterpieces. If not permanent exhibition, it should be exhibited at least once a year. Concealing the work and just keeping it is an affront to the duty of the gallery.”
“Even if we don’t exhibit, we will sell. Of course I won’t sell them all.”
“What does that mean? Sunyang Gallery is not a dealer.”
“Trust me and go ahead. There is nothing to lose, right?”
She seems to be still confused because she only talked about unbelievable things during this short time I met her.
But Bet Porter seized the opportunity of a lifetime.
Opportunities like this come unexpectedly and suddenly. There is not much time to think about whether or not to seize that opportunity.
Opportunity is a heartless guy who only waits for a very short time.
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