Archegos Liquidation
Summary
Former Tiger Asia hedge fund manager Bill Hwang’s family office (Archegos) was forced to liquidate billions of dollars of equity positions over the past two trading sessions.
Hwang’s family office assets under management were valued in the range of $5 billion to $10 billion, but via global investment bank provided leverage, the family office’s gross exposure was 10x to 20x this level at over $50 billion.
Market Takeaways
We are most intrigued by how investment banks are on both sides of markets. They facilitate trades and operational settlement for the hedge fund industry, while on the other side are providing what turned out to be reckless amounts of leverage to a private investor to squeeze clients of the same prime broker.
See full report here
Bill and “friends” seemed to have been a major force in pushing names since Nov.