What stocks did Archegos invest in?

Soros Fund Management snatched up Archegos-tied shares of ViacomCBS (ticker: VIAC), Baidu (BIDU), Vipshop Holdings Limited (VIPS), and Tencent Music Entertainment Group (TME) in the first quarter, according to regulatory filings released Friday.

What happened at Archegos?

What happened at Archegos? Hedge funds make money buying and selling shares. By the end of March, Archegos owed Morgan Stanley $644m, while the investment bank lost another $267m by selling out of shares linked to its trades with the hedge fund.

What did Archegos do wrong?

Archegos’ meltdown was triggered last week after some of its portfolio stocks witnessed a significant price fall. This in turn triggered margin loan calls from the banks. Shares of Archegos’ portfolio stocks were battered by the banks’ giant block trades in the selling spree.

What happened at Archegos Capital Management?

Archegos failed to meet the margin calls, prompting a massive $20 billion fire stock sale as the banks, or at least some of them, rushed to sell off the fund’s positions to make cash so that Archegos could pay what was owed.

What are Archegos stocks?

Archegos took big, concentrated positions in companies and held some positions via something called “total return swaps.” Those are contracts brokered by Wall Street banks that allow a user to take on the profits and losses of a portfolio of stocks or other assets in exchange for a fee.

Who owns Archegos fund?

Bill Hwang
New York-based Archegos cost six banks (Credit Suisse CS -0.9\% , Nomura, Morgan Stanley MS -2.1\% , UBS, MUFG, and Mizuho) more than $10 billion when it defaulted on a margin call in March. The firm was created by Bill Hwang as a family office, essentially a private company to manage his wealth.

Why did Archegos liquidate?

(NASDAQ:DISCA) shares yesterday, according to an IPO Edge report. The liquidation in Archegos, which reportedly focused on tech, media and telecom companies, may have been precipitated by a margin call that the fund received from an investment bank that couldn’t be met, IPO Edge said, citing one person familiar.

What was Archegos leverage?

As Bloomberg reported, Hwang’s portfolio grew to USD100 billion. This would equate to 5x leverage in a cash portfolio. As one US prime broker expounded to me: “We focus on three things: diversity, liquidity and balance in the portfolio.” The stocks held by Archegos – including ViacomCBS and Discovery Inc.

How did Archegos lose so much money?

Archegos Capital Management imploded last month with all the force of a collapsing star, lopping off billions from the trading profits of some of the world’s biggest investment banks. After Tuesday’s disclosures by Swiss giant UBS and Japanese lender Nomura, the hit to banks so far is roughly $10 billion.

What was Archegos holding?

In 2014, Hwang “was banned from trading in Hong Kong for four years.” Archegos’ holdings were primarily in the form of total return swaps, a financial instrument where the underlying securities (stocks) are held by banks….March 2021 losses.

Company	Loss (US$ mln)
UBS	774
Mitsubishi UFJ Financial	300