The place Ichan had chosen for the eting was the Russian Tea Room.
This establishnt, carrying decades of tradition, was decorated in a way that made it look as grand and opulent as a Russian imperial palace.
‘Dazzling.'
A crystal chandelier overhead showered the room in brilliant light, and the walls were lined with gold-trimd decorations.
The combination of red and gold dominated the interior, while the heavy leather sofas scattered throughout added a sense of gravitas.
To put it nicely, it was old-fashioned…
But my honest impression was different.
‘It’s outdated.'
Rather than a modern reinterpretation of tradition, it simply felt like stepping into a museum where ti had stopped.
It was far from sophisticated…
But, well, that was inevitable.
‘Considering his age.'
Ichan was 78 years old this year.
Younger than Kissinger, but his manners and tastes seed even older.
"This way, please. Your companion hasn’t arrived yet."
Following the guidance, I stepped into a private room.
While waiting for Ichan, I reviewed my strategy once more.
‘He won’t agree to this easily…'
My goal was clear.
To form an alliance with Ichan.
More specifically, to establish a joint fund with him and use its shares to secure a position on the board.
However…
‘There’s no way Ichan will accept that so readily.'
He might agree to the alliance, but he would never yield a board seat.
Of course, I had already accounted for that scenario…
But I couldn't let my guard down.
After all, I was dealing with a living legend of Wall Street.
Just then, the door opened, and Ichan entered.
Glancing at the masterpiece on his wrist, I saw that it was precisely 6:30, the agreed ti.
"Did you wait long?"
"No, I arrived early."
"I used to be like that when I was young, too."
With those words, Ichan took a seat across from .
‘He’s got a real old-school vibe…?'
While that thought crossed my mind, he didn’t even bother looking at the nu before placing an order with the waiter.
"The usual. No, wait…"
He suddenly stopped mid-sentence, turned to , and asked,
"Do you eat steak tartare?"
It seed like he was trying to impose his usual nu choice on .
I nodded for now.
"Yes, that’s fine."
"Then, as I said."
Once the waiter left, Ichan spoke again.
"Have you had tartare before? The beef version, not tuna."
Tartare is a dish made with raw ingredients.
While it’s typically prepared with tuna, steak tartare is a Russian-style raw beef dish.
I replied calmly.
"Yes, I’ve had it."
"You must have an adventurous palate."
Assessing personality based on whether soone eats tartare?
It was another mont that highlighted the generational gap between us.
Back in the 1980s, when Ichan was in his pri, Japan’s economy was booming, making sushi a frequent feature in business dining.
However, at the ti, the idea of eating raw fish was shocking to most Aricans.
Many considered it unsanitary and risky.
Back then, eating sashimi itself was seen as an act of adventure.
‘But that was ages ago.'
Now, sushi was mainstream, a dish anyone could easily enjoy.
Though raw beef still had so mixed opinions, it wasn’t that different.
"It’s a fairly common dish these days."
In other words, the ti when people tested personalities based on food choices was long gone.
Anyone who spent even a little ti with younger people would know that…
Though I conveyed that point indirectly, Ichan didn’t seem to take it in.
"Go ahead and eat."
When the steak tartare was placed in front of , he observed my expression closely.
As if trying to gauge how uncomfortable I felt about the dish.
‘Really old-fashioned.'
But if I wanted to get along with the old man, I had no choice but to go along with this test.
I picked up my fork and slowly mixed the tartare.
Korean-style yukhoe is cut into matchstick-sized strips, offering a chewy texture, whereas Russian-style tartare is finely minced, making it much smoother.
I spread it like butter over a well-toasted piece of rye bread and took a bite.
The rich yet fresh beef flavor filled my mouth.
The sharp mustard enhanced the at’s deep umami, while the crisp texture of finely diced onions added a refreshing contrast.
"It’s good."
Hearing my honest review, Ichan finally started eating as well.
After the appetizer was cleared and the main course arrived, he finally got to the main topic.
"About that ‘fraud’ you ntioned… I couldn’t find any evidence."
Previously, when I had t him at the gallery, I had subtly planted the idea that Ackman was involved in fraud.
It seed he had looked into it.
"As expected, you investigated."
I smirked as I answered, and Ichan, too, curled the corner of his mouth into a smile.
"Isn’t that what you wanted to do?"
Well, he wasn’t wrong.
"Ackman’s investnt targets number around ten. Two days should have been enough ti to investigate all of them. Given that you set that exact tifra, I assud you had this in mind?"
Ichan looked straight in the eye, his smile turning cold.
"In the end, without your help, I wouldn’t be able to uncover the fraud… Wasn’t that the point of giving a ti limit?"
I shrugged and responded.
"I just wanted to see if anyone else could find it. But it looks like you couldn’t, after all."
"I couldn’t."
"As I ntioned, this is a fraud that can only be detected if you know the precise point where the problem occurs."
Ichan clasped his hands together and spoke solemnly.
"I suspect another possibility—that maybe there was no fraud in the first place."
"No, the fraud definitely exists."
I stated firmly and then threw him another hint.
"It’s Valeant."
Valeant.
A company that had rapidly expanded by swallowing up nurous businesses through M&A, now partnering with Ackman to acquire Allergan.
On the surface, it appeared to be thriving, but…
‘Beneath that, a massive fraud was lurking.'
As soon as I ntioned it, Ichan’s expression hardened.
"That can’t be… Their business tactics might be aggressive, but they aren’t illegal."
His voice carried conviction.
That was the stance of soone who had thoroughly investigated the company.
But I smiled and countered.
"No, there is fraud. It’s just that their thods are so unique that they’re hard to detect."
To put it precisely, Valeant was committing embezzlent.
However, this wasn’t the typical kind of embezzlent where financial statents were simply doctored.
They had co up with a more creative way to secure illicit profits…
While it wasn’t as shocking as Theranos, it was still enough to cause a major scandal.
"The mont this fraud is exposed, Valeant and Ackman will face a massive crisis."
I knew exactly what was going to happen.
Once the fraud was revealed, Valeant’s stock price would plumt.
The scandal tied to their na would be so severe that they would eventually have to change their company’s na.
Ackman’s reputation would also crash into ruin.
This incident will soon lead to a massive redemption crisis for his Fund.
‘Normally, this incident wouldn’t happen until next year…'
In 2015, a hedge fund shorted the stock, exposing the fraud.
In other words, the timing right now wasn’t quite right.
Of course, the timing itself wasn’t a big issue.
I could just expose it myself.
The real problem was that, at this mont, there was no concrete evidence of this fraud.
The only way to obtain that evidence was to take action myself…
"Before making a decision, I need more proof."
Ichan was demanding evidence to verify the fraud before forming an alliance.
In other words, I had to convince him to form an alliance despite not having any proof yet.
But that didn’t matter.
I smiled calmly and replied.
"We’re trading based on information, yet you’re asking for the information before the trade—it’s quite a dilemma."
"But from my perspective, it’s difficult to invest based on just your words."
"Investnt always involves making decisions with incomplete information."
"But in this case, isn’t the risk too high?"
"The higher the risk, the greater the return."
High risk, high return.
As I reminded him of the fundantal principle of investing, Ichan smirked coldly.
"Well, I still have Herbalife. I’m not sure this is worth fighting on two fronts."
He was already engaged in a battle over Herbalife, so he questioned whether it was necessary to enter another one.
That part would require persuasion.
"Allergan offers a completely different kind of return from Herbalife. In fact, it offers three distinct advantages."
"Three?"
"That’s right. First, by forming this alliance, you can expose Ackman’s hypocrisy."
Ackman had always criticized Ichan as a ‘corporate raider’ while building an image of himself as an ‘honest gentleman.’
However, at least regarding Allergan, he was employing tactics just as aggressive as Ichan’s, even forming alliances that bordered on legality.
By joining forces with , Ichan would gain the opportunity to publicly call him out.
"Second, aligning with will make Ackman look like an outdated investor."
Ackman often portrayed Ichan as a relic of the past while branding himself as the representative of a younger, newer generation.
But if I allied with Ichan?
It would create the image that Ackman was being overtaken by a rising star like —turning him into the ‘relic of the past.’
"Just like trends co and go, we could fra it as the resurgence of Ichan-style investing."
Ackman’s label for Ichan as ‘a relic’ could be thrown right back at him.
It would be a satisfying case of poetic justice for Ichan.
However, after hearing my reasoning, Ichan scoffed.
"You seem to misunderstand sothing. It’s true that I don’t think highly of Ackman, but I don’t make investnt decisions based on emotions."
The two reasons I had presented were both rooted in emotions—in other words, ‘revenge.’
Ichan was pointing out that revenge was rely a secondary factor to him.
I imdiately acknowledged his words with a smile.
"I know. If revenge was your only goal, you wouldn’t have waited ten years."
Ichan had always been aware of Ackman’s investnts.
If he had wanted to interfere out of pure spite, he could have done so at any ti.
So why had he waited for ten years?
"You intervened in Herbalife because it was the first major mistake Ackman made in a decade."
Ackman had shorted Herbalife, convinced it was a pyramid sche.
However, he had underestimated how difficult it was to legally prove such a structure.
Ichan saw the opportunity.
"When a short fails, the opposing position reaps massive profits. You seized that opportunity—a chance to make money while also getting revenge."
Ichan wasn’t just after revenge.
For him, the top priority was always profit.
He had waited ten years, biding his ti like a predator crouched in the bushes, waiting for the perfect mont.
A re emotional appeal wouldn’t persuade him.
Of course, I had already prepared a way to convince him.
"If we’re talking alliances, the most important factor is expected returns. Based on my calculations, this M&A arbitrage could yield about 30% profit. But that’s not all. As I ntioned, this deal involves fraud—so there’s another source of profit."
I looked at him with confidence and smiled.
"Short selling. If the fraud I ntioned is exposed, Valeant, currently at $145, will crash to $10."
Such a drastic stock plunge was rare.
This was an unprecedented short-selling opportunity.
"Furthermore, this is a chance to create two separate profit streams from a single event."
One—drive up Allergan’s stock price for gains.
Two—crash Valeant’s stock and profit from the short.
Ichan remained silent for a mont, lost in thought.
Then, he finally spoke.
"Jumping in just for the returns would be foolish."
"That’s right. The most important thing in investing is risk managent. That’s why I proposed taking a board seat."
This was the critical part.
The reason I had offered an alliance was ultimately to secure a seat on Allergan’s board through the acquired shares.
"You want to join forces with you, but you take the board seat?"
If we both invested the sa amount, there was no reason for Ichan to simply hand over the leading role to .
In that case…
‘I just have to give him a reason not to take it.'
"Would you like to take the board seat instead?"
"But what if you’re wrong? If you’re the one on the board when that happens, the optics won’t look good."
Right now, there was no solid evidence of fraud.
If things went south, Ichan would want an easy way to back out.
But if I took the board seat, he could conveniently distance himself and shift the bla onto .
‘Ti to wrap this up.'
I glanced at the masterpiece on my wrist before speaking.
"I believe I’ve given you enough ti to decide. If you decline, I’ll have to move on to the next person."
"Bringing up a competitor… That’s a classic move."
"Classics are classics for a reason."
"If you work with an ordinary investor, you won’t get the sa effect you’re aiming for. Weren’t you banking on dia impact?"
I had chosen Ichan because of his long-standing rivalry with Ackman.
Their history added the kind of sensationalism that made for compelling headlines.
He seed to suggest that without him, that extra flair would be lost, but I had a response prepared for that as well.
"If it’s dia impact you’re concerned about, there’s another option. For example—soone like Slater."
The Slater I was referring to was the Great White Shark.
Even if I partnered with the Great White Shark instead, it would still make waves.
"As I said, I prefer you, but you’re not my only option. Make your decision."
"Hmm…"
Seeing that he was still hesitating, I played my final card.
"If you still think the risk managent isn’t sufficient, how about this? If this investnt results in losses, I will cover 70% of them."
Instead of splitting potential losses 50/50, I was offering to take on a significantly larger share.
A bold condition.
"There’s no such thing as a free deal, is there?"
"Of course not. In return, if we succeed, I’ll take 70% of the profits."
Ichan thought for a mont longer.
Then, at last, he nodded.
"My lawyer will contact you."
That ant he was willing to discuss the legal terms for setting up the joint fund.
In other words, he had agreed to the alliance.
‘With this… I’ve secured everything I need to take the lead role.'
An alliance, a board seat, and 70% of the profits if we succeeded.
I had taken everything there was to take.
Of course, if we failed, I would bear 70% of the losses…
But that didn’t matter.
I already knew the future—failure wasn’t an option.
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