Bill Hwang amassed a fortune before losing it completely after his lenders began selling his positions to repay them.
April 9, 2021
3 minutes of reading
Little was known about Bill Hwang until this week, when a failed transaction caught the attention of the $ 20 billion he lost.
As a Korean-American immigrant who served as the patron of Tiger Management founder Julian Robertson, Hwang runs his own fund, Tiger Asia Management. At its peak, the company amassed more than $ 10 billion in assets, according to the company Bloomberg.
Soon, however, Hwang became the subject of investigations by US securities regulators, who accused him of using confidential information from private placement offers. short sale of three Chinese bank shares. After settling the claims and paying more than $ 60 million in fines and fines, Hwang closed Tiger Asia and opened Archegos as the family office.
As Bloomberg note, Hwang, a deeply religious person, often relies on his faith when explaining Archegos’ portfolios, which include investments in major tech companies like Netflix, Amazon, LinkedIn, and Facebook. . And as his participation in his faith-based circle increased, so did his trading activity. Despite Hwang’s previous involvement with the SEC, lenders such as Credit Suisse and Morgan Stanley continue to work with him, all while Hwang is increasingly secretive and increasingly transacting through swap arrangements. and increased his leverage in the same class of stock – as at ViacomCBS and Discovery – that some of his banks came into contact with.
By 2017, Archegos had a capital of approximately $ 4 billion. A few years later, Hwang was able to increase his net worth from $ 10 billion to $ 50 billion, New York Post for more information.
But things went south last week, when ViacomCBS – which Archegos had massively staked and tripled its shares in four months – saw a $ 3 billion stock offering via Morgan Stanley. and JPMorgan went bankrupt CNBC report. That caused some frenetic brokers to escape positions on Archegos’s behalf. Although Morgan Stanley, Goldman Sachs, Deutsche Bank and Wells Fargo made a relatively peaceful escape, others – including Credit Suisse, Nomura and Mitsubishi UFJ Financial Group Inc. – less luck. Nomura alone lost an estimated $ 2 billion, according to the report CNBC.
Overall, Wall Street banks in partnership with Archegos are said to have liquidated assets worth $ 20 billion.
“This is a challenging time for the Archegos Capital Management family office, our partners and staff,” Karen Kessler, an Archegos spokesperson, told the network. “All plans are being discussed as Mr. Hwang and the team determine the best path ahead.”