20 years: Trading & hedge funds
In this video, Trevor explains the origins and the rise of Bill Hwang, a former tiger cub and the fund manager of Archegos. He also introduces the trading strategy used by Archegos that ultimately led to their demise.
In this video, Trevor explains the origins and the rise of Bill Hwang, a former tiger cub and the fund manager of Archegos. He also introduces the trading strategy used by Archegos that ultimately led to their demise.
10 mins 5 secs
Bill Hwang created Archegos Capital Management. It was created as what is known as a family office, only running money from himself and close family. Eight years later, Archegos, a fund that very few in the financial markets had even heard of, would collapse spectacularly, causing $10bn in losses for its investment bank counterparties, and wiping out the entire $10bn of its own Assets Under Management that it held at the start of the year.
Key learning objectives:
How was Archegos formed?
What three main strategies undertaken by the fund led to disaster?
How did the holding of Viacom lead to catastrophe?