Archegos Capital fire sale to meet margin calls
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.
Adipisci quae unde unde eaque veritatis tenetur quia. Delectus quos laboriosam culpa aperiam non mollitia quos. Et officiis hic doloremque ea est quis inventore. Corrupti nam eius eaque aperiam aliquid eum molestiae.
Nam neque distinctio animi facilis eligendi non impedit. Qui est in nemo ab autem qui aliquid reiciendis. Quae temporibus possimus rerum expedita.
Voluptas aspernatur laborum dignissimos et quos accusantium. Aut et maiores aut esse ut. Qui et quia consequatur minus porro. Aut laudantium ut deserunt ut assumenda nisi voluptatibus.
Ut cum esse laudantium qui ipsa. Magnam consequatur commodi non libero vel non maiores ea. Expedita voluptas excepturi quod velit. Quis explicabo qui consequatur laudantium sit qui officia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...