Previous Article EXCLUSIVE: Tiger Cub Archegos Liquidation Triggers. Some of the stocks that were reportedly hit in this selling spree included ViacomCBS, Discovery, Baidu, Tencent Music, Vipshop Holdings and others. The liquidation of Melvin Capital has caught a number of consumer-facing companies. Hwang, a so-called Tiger cub who got his start with Julian Robertson’s Tiger Management, placed his bets via total return swaps that, as Institutional Investor has previously reported, were. There is no doubt that there will be some very big money made from these drops, as smart investors took advantage of the forced selling to load up. Banks could face up to 10 billion in losses stemming from the liquidation of Archegos Capital Management, according to JPMorgan. This led investors in ViacomCBS to wonder exactly what had just happened, as shares of the company were trading around $100 per share just a few days ago, and suddenly they were being marked down to less than $40.Īll of this came during a strong day on the markets. Morgan Stanley and Goldman Sachs Group Inc., along with other major banks, forced the liquidation of more than 20 billion of holdings for Hwang’s New York-based Archegos Capital Management on. This is highly unusual and was a clear sign that a fund or major investor was getting liquidated.Īccording to IPO Edge, that fund was Tiger Cub Archegos Capital Management LLC, which is led by Bill Hwang.Īccording to reports, Archegos Capital was employing 5x leverage on their positions.Īfter receiving a "margin call" from an "investment bank", Archegos Capital was reportedly unable to meet it, and the forced liquidation began.Īccording to reports, Goldman Sachs offered an astonishing 30 million shares of ViacomCBS during midday trading, while Morgan Stanley had offered 15 million shares of Discovery. Indeed, word was leaking that Goldman Sachs was trying to place enormous blocks of shares in ViacomCBS and others intraday on Friday. ViacomCBS and Discovery closed down more than 27 on Friday, with Viacom off more than 50 for the week. Hwang and his firm ended up paying 60 million to. Archegos Capital was founded by the former Tiger Management equity analyst, Bill Hwang. In fact, a number of other companies, including Baidu, Tencent Music and others, seemed to be getting liquidated on Friday afternoon. When Tiger Asia pleaded guilty to wire fraud in 2012, the SEC said the firm used inside information to trade in shares of two Chinese banks. The carnage wasn't confined to just ViacomCBS. After all, ViacomCBS is just a large, boring media company, right? ViacomCBS, Discovery, Baidu Rocked on FridayĪt one point on Friday afternoon, shares of ViacomCBS dipped below $40/share - a stunning one-day drop of nearly $30.Ĭonsidering that ViacomCBS closed the day before at $66.35, this was an inexplicably large decline.
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