The fund’s head trader in New York hung up the phone when contacted by the Financial Times." In any case, Archegos is now finished: as the FT reports, "the firm’s website is no longer available and the company did not return multiple requests for comment.
Archegos liquidation upgrade#
Meanwhile, adding insult to injury, a handful of completely clueless sellside "analysts" who had no idea a fund was forced to dump its positions and were scrambling to explain the price action, rushed to downgrade companies such as ViacomCBS - because on Wall Street, price dictates fundamentals apparently - and only added to the liquidation frenzy even though their arguments were completely false (just as they had been on the upside when these same clueless penguins rushed to upgrade the companies). and iQiyi, a Goldman email to clients said.Īt the same time, traders buying the large blocks of stock - which were being intermediated by such firms as Goldman Sachs - were told the share sales had been prompted by a “forced deleveraging” by a fund. That sale was followed by the sale of $3.9 billion of shares including ViacomCBS Inc. According to Bloomberg, Morgan Stanley traded about $13 billion, including Farfetch, Discovery, Baidu and GSX Techedu, while Goldman Sachs sold $6.6 billion worth of shares of Baidu, Tencent Music Entertainment Group and Vipshop Holdings. The fund, which had large exposures to ViacomCBS and several Chinese technology stocks, was hit hard after shares of the US media group began to tumble on Tuesday and Wednesday.Īs we speculated, the initial plunge in media names prompted a margin call from one of Archegos’ prime brokers, which in turn then prompted a cascade of similar cash calls from other Prime Brokers said FT sources. Today, both the FT and Bloomberg confirm that it was indeed Hwang responsible for the forced unwinds that shook the market on Friday.Īrchegos Capital, a private investment firm, was behind billions of dollars worth of share sales that captivated Wall Street on Friday - a fire sale that has left traders scrambling to calculate how much more it has to offload, according to people with knowledge of the matter. which wiped out $33BN of value off all the companies involved as Goldman Sachs and Morgan Stanley sold blocks of shares worth $20BN at discount prices throughout the day, we pointed to Tiger Cub Bill Hwang's Archegos Capital Management family office and asked if " This Was The Fund That Sparked The Massive Media Stock Liquidations." as well as a collapse in the price of media giants such as ViacomCBS and Discovery. Yesterday, in the aftermath of Friday's bizarre, furious liquidation which saw a dramatic plunge in the price of various Chinese tech stocks.
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