Traders are sold after stocks of Archegos are sold
Archegos Capital, a private investment firm, was behind the $ 1 billion share sale that captivated Wall Street on Friday. your sale this has allowed merchants to make an effort to calculate how much more to download, depending on the people who know the subject.
The fund, which had high exposures to ViacomCBS and technology stocks in China, hit hard after shares of the U.S. media group fell on Tuesday and Wednesday.
The downturn hit the margins of one of Archegos ’top brokers, and other banks caused similar cash requests, people who knew the issue said. Traders who bought large blocks of shares were told that the sale of the shares was caused by a “forced eviction” by a fund.
Archegos is the family office that manages Bill Hwang’s wealth, a former student of Julian Robertson’s legendary Tiger Management hedge fund “Tiger cub”.
The company’s website is no longer available and the company has not returned multiple requests for comments. The principal seller of the New York fund hung up the phone when he contacted the Financial Times.
Hwang of New York previously ran the Tiger Asia hedge fund, but returned the money to investors in 2012 accepted wire fraud About Chinese bank stocks.
Hwang was fined $ 44 million settlement of illegal trade charges With the Securities and Exchange Commission in 2012, and in 2014 was banned from trading in Hong Kong. He has not responded to multiple requests for answers.
Friday’s sales depreciated about $ 33 billion in value among participating companies, including Chinese technology stocks and U.S. media groups, as Goldman Sachs and Morgan Stanley sold $ 19 billion worth of blocks during the day. Other funds may also have been added to the sale, according to people familiar with the profession
Archegos manages its own money and has no outside investors, but the deep need to unload large stakes is being sent to stocks in several companies in Asia and elsewhere, causing losses to other shareholders.
For these other investors, the question now is whether the fire sales are over. Some markets have said the latest sales model, which lasted several days but peaked on Friday, suggests that the largest ones are made up. Others believe that the lever measures used by Archegos may leave the billion-dollar positions still unsold.
Archegos described it as a “sufficient community of professionals in the investment sector,” according to the archived version of its website.
His name is the Greek Bible word meaning leader, chief, or prince, which is used in connection with Jesus. 2018 YouTube video, Hwang said his investments are “not all money,” and added that “God has a long-term vision.”
“We love to see in our little eyes what God is doing through investment and capitalism and how… It can be done better,” he said.