Partnered With:

Investment enlightenment by Matt Huang, founder of Cryptocurrency fund Paradigm

Read this article in 7 Minutes

How did Citadel's Huang Gongyu go from Silicon Valley entrepreneur to Internet mogul and top fund practitioner to cryptocurrency fund founder?

原文标题：《上阵父子兵：从 LTCM 到张一鸣再到 Citadel 》

Source: Tradinggate

Pulse injection: This is the first in a series of stories about how Citadel Securities raised $1.15 billion in a new round by Sequoia Capital and Paradigm, a crypto investment firm. Today, let's understand the story of Matt Huang, the eldest son of Dr. Qifu Huang, the founder of crypto fund Paradigm.

Citadel Securities has raised $1.15 billion at a valuation of $22 billion (about 140 billion yuan) from Sequoia Capital and Paradigm, a crypto investment firm. Today's story behind the Citadel news.

One interesting name we noticed in this story is Matt Huang, co-founder and managing partner of Paradigm, a cryptocurrency investment firm. Many people got to know Huang gongyu for the first time in an article posted by the popular public platform "Luanfanshu" : "He traveled to Beijing from Silicon Valley at the age of 24, got to know Zhang Yiming and now earns 2,000 times his investment in Toutiao." This article is very classic, also has many details, you can go to review.

The article revealed that huang Gongyu, then 24 years old, met Zhang Yiming by chance after returning from the United States and invested in Toutiao, creating a myth that he earned 2,000 times his wealth in seven years of investment. At a time when many domestic investors were not optimistic about Toutiao, huang Gongyu, a young man, was keenly aware of toutiao's potential and quickly invested.

Wong graduated from MIT in 2010 and started an ad-related company, Memy, which he worked as an AD analyst at Twitter when the company was acquired in 2012. When Huang joined Sequoia Capital in 2014, it was reported that Sequoia was poaching for Twitter. After leaving Sequoia Capital in 2018, Huang and his friends set up Paradigm, a cryptocurrency fund. In fact, Before joining Sequoia, Huang gongyu began to make early personal angel investments, and toutiao was in the process.

Who is Huang Gongyu? It turned out that he was the eldest son of Huang Qifu, the first Chinese financial scholar (first left in the picture below).

Huang qifu plays an important role in modern financial academic field, and was once considered as one of the Chinese scholars most likely to win the Nobel Prize in Economics. After earning a PhD in finance from Stanford in 1983, Huang enrolled at MIT Sloan. He became a tenured professor at MIT in 1989 and a full professor at Sloan in 1990, becoming an endowed professor at the age of 36. While in Massachusetts, Huang wrote the Book Fundamentals of Financial Economics, which quickly became a classic textbook in financial economics after its publication in 1988. It was widely adopted by many prominent business schools in the U.S. and Europe, and was once out of print, resulting in a large number of photocopies.

Dr Huang later left academia to become a lead partner at Long-term Capital Management, which at its height in the mid-1990s had assets under management equivalent to China's GROSS domestic product. In 1998, however, Russia went bankrupt and had no one to pick up the bill. Long-term Capital lost a lot of money in the crisis because of its excessive leverage and belief that others would come to Russia's aid. Mr. Huang ran out of savings invested in long-term capital. But he quickly joined forces with Mr Scholes and others to found Platinum Grove Asset Management, a fund that quickly grew to $5bn in 2007 thanks to the genius of Mr Huang and Mr Scholes. However, when Lehman Brothers collapsed in 2008, triggering the global financial crisis, The net value of Huang's new fund quickly dwindled, and Huang and Scholes retired after the battle.

However, Professor Huang's personal investment career did not end. According to insider information, Huang also gained a lot in Toutiao's angel investment because of Huang's excellent vision.

Huang Gongyu, who appeared in the Citadel news, must have inherited his talent for investing from his father. Despite big Huang's ups and downs in the financial industry, twice Fiasco. But as a Silicon Valley entrepreneur, Internet mogul and top fund practitioner, and crypto fund founder, Huang's career has been a flop. We have to sigh, the Huang family gene is great. Even Mrs. Huang is a CS professor at MIT!

Dear readers, when preparing to roll chicken babies for Spring Festival, take a lesson from this father and son's story: chicken babies are worse than chickens themselves.