Didn't see this anywhere on the forum. Reportedly, Archegos Capital couldn't meet margin calls by a prime broker last week. They had (still have?) to sell almost $30 billion in stocks, Viacom, Discovery and Chinese tech stocks like Baidu, Tencent Music and Vipshop.
Reasons why the margin calls couldn't be met differ, Forbes reports they were long "GSX Techedu, a Chinese education company that is the target of short sellers." In the German article I read first they mention a capital increase at Viacom and falling prices in Chinese stocks.
The block sales were handled by GS and MS and prices dove tailed. Another reason why my CSI300 ETF is performing badly this month. Other banks are calling in additional capital too, among them Credit Suisse and Nomura.
Archego is the family office of Bill Hwang, ex Tiger Global manager. The website isn't available anymore and requests aren't answered. Anyone has additional info? As of now it doesn't seem as bad as some other hedge fund collapses. Not certain even that they will collapse. However there are speculations that they used lots of leverage and still more shares have to be sold.
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