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BILL HWANG AND ARCHEGOS CAPITAL: THE FALLOUT

BILL HWANG AND ARCHEGOS CAPITAL: THE FALLOUT

Day: 10 | Time: 00:29:36.000Z Founder of Archegos Capital Management The founder of Archegos Capital Management is Bill Hwang. Hwang is a successful hedge fund manager who started his career at Tiger Management, working closely with legendary investor Julian Robertson. He later founded his own hedge fund, Tiger Asia Management, which focused on Asian equities. In 2012, Hwang closed Tiger Asia Management following an insider trading investigation by the Securities and Exchange Commission (SEC). However, he continued to manage his personal wealth through a family office called Archegos Capital Management. Archegos Capital Management operated as a private investment firm, managing Hwang's personal wealth as well as the funds of other wealthy individuals and family offices. The firm employed a highly leveraged strategy, taking large positions in a concentrated portfolio of stocks. In March 2021, Archegos Capital Management faced a significant margin call from its prime brokers, which led to a massive sell-off of its positions. This sell-off caused a ripple effect in the market, with several stocks experiencing sharp declines. The losses incurred by Archegos Capital Management were estimated to be in the billions of dollars. The incident involving Archegos Capital Management highlighted the risks associated with highly leveraged positions and the potential for a single firm's actions to have widespread consequences in the market. It also raised questions about the adequacy of risk management and oversight by prime brokers. Following the fallout of the Archegos Capital Management incident, Hwang and his firm faced significant regulatory scrutiny and financial penalties. The incident also resulted in losses for the prime brokers involved in the margin call. https://www.forexlive.com/news/bill-hwang-joins-the-list-of-famous-wall-street-figures-who-have-been-sentenced-to-prison-20240710/