According to people familiar with the transaction, investor Bill Hwang caused a storm in the stock market last week when his firm, Archegos Capital Management, and its banks began reducing their holdings in blue-chip companies, according to people familiar with the transaction. The sale has sent shifts to individual stocks and caused huge losses to at least two banks.
What is Archegos Capital?
Archegos is a vehicle of family investments. Owned by Mr. Hwang, a former protગીg of hedge-funded Titan Julian Robertson. Mr. Hawang was a so-called Tiger cub, a sh fashut of Mr. Robertson’s Tiger Global Management. Mr. Hwang founded Tiger Asia in 2001. Based in New York, it became one of the Asia-focused hedge funds, running for over 5 5 billion on its peak. In 2008, it was part of a fund that suffered losses related to rising share prices of Germany’s Volkswagen AG.
In 2012, Tiger Asia said it planned to return money to investors. Later that year, the pay firm pleaded guilty to criminal fraud charges for using information inside investment banks to make a profit on a securities business. Mr. Wawang and Tiger Asia paid 44 44 million to settle a related civil lawsuit, the Wall Street Journal reported at the time.
Mr. Hwang turned Tiger Asia into his family office fee and named it Archegos according to his website.
Andy Mills, co-chief executive of Mr Hwang and Archegos, did not respond to requests for comment.