Little was known about Bill hwang Until this week when a business fiasco highlighted the $ 20 billion fortune he’d lost.
A Korean-American immigrant who was once a protégé of Tiger Management’s founder Julian Robertson, Hwang ran his own fund called Tiger Asia Management. In its heyday, the company reportedly amassed more than $ 10 billion in net worth Bloomberg.
Soon after, however, Hwang was the subject of an investigation by the US Securities and Exchange Commission, which accused him of using confidential information from private placement offers to short three stocks in Chinese banks. After Hwang settled the claims and paid more than $ 60 million in fines and refunds, Hwang closed Tiger Asia and opened Archegos as a family office.
As mentioned BloombergA deeply religious man, Hwang often relied on his faith to explain Archegos’ portfolio, which consisted of investments in large technology companies such as Netflix, Amazon, LinkedIn and Facebook. And as his participation in his faith-based circle increased, so did his business. Despite Hwang’s previous work with the SEC, lenders like Credit Suisse and Morgan Stanley continued to work with him, while Hwang secretly and increasingly traded through swap deals, increasing his leverage on the same stocks as stocks like ViacomCBS and Discovery – which some of his banks hold him had exposed.
By 2017 Archegos had a capital of around $ 4 billion. A few years later, Hwang grew his net worth from $ 10 billion to $ 50 billion New York Post.
But things went south last week when ViacomCBS, which Archegos had gambled massively at in four months and tripled its shares, collapsed its $ 3 billion stock offering through Morgan Stanley and JPMorgan, it reports. CNBC. This in turn caused some runners to frantically rush out of their positions for Archegos. While Morgan Stanley, Goldman Sachs, Deutsche Bank, and Wells Fargo got away with it relatively unscathed, others, including Credit Suisse, Nomura, and Mitsubishi UFJ Financial Group Inc., were less fortunate. According to CNBC, Nomura lost an estimated $ 2 billion.
In total, the Wall Street banks that worked with Archegos have liquidated $ 20 billion worth of assets.
“This is a challenging time for Archegos Capital Management, our partners and employees,” Archegos spokeswoman Karen Kessler told the network after one of the largest and fastest financial losses in history. “All plans are discussed while Mr. Hwang and the team determine the best way forward.”