The family office of former Tiger Management trader Bill Hwang was behind the unprecedented selling of some U.S. stocks Friday, according to two people directly familiar with the trades.
Archegos Capital Management was forced by its banks to sell more than $20 billion worth of shares after some positions moved against him, said the people, who asked not to be named because the details aren’t public. The companies involved ranged from Chinese technology giants to U.S. media conglomerates.
Morgan Stanley traded about $13 billion, including Farfetch Ltd., Discovery Inc., Baidu Inc. and GSX Techedu Inc., said the people, while Goldman Sachs Group Inc. sold $6.6 billion worth of shares of Baidu, Tencent Music Entertainment Group and Vipshop Holdings Ltd. before the market opened in the U.S, according to an email to clients seen by Bloomberg News.
That move was followed by the sale of $3.9 billion of shares including ViacomCBS Inc. and iQiyi Inc. the email said.
Hwang didn’t reply to an email seeking comment Sunday. A Goldman spokesperson declined to comment and a Morgan Stanley official didn’t immediately respond.
ViacomCBS and Discovery posted their biggest declines ever Friday, after the selling and analyst downgrades. ViacomCBS closed 27% lower to $48.23, down from a high of $100.34 on March 22. Discovery also slumped 27% to $41.90, down from $77.27 on March 19.
Wall Street figures have been feverishly speculating about the identity of Friday’s seller. The liquidation had triggered price swings for every stock involved in the high-volume transactions, rattling traders.
Block trades -- the sale of a large chunk of stock at a price sometimes negotiated outside of the market -- are common, but the size of these trades and the multiple blocks hitting the market during the normal trading hours aren’t.
Hwang was an institutional stock salesman at Hyundai Securities Co. in the early 1990s, where he dealt with Julian Robertson’s Tiger Management. Robertson hired him in 1995 after Hwang won an annual prize awarded to the person outside of Tiger who had contributed most to the fund’s success.
After Robertson closed Tiger, Hwang set up Tiger Asia Management, in part with money seeded by his mentor Robertson.
In December 2012, Hwang admitted to illegally using inside information to trade Chinese bank stocks and agreed to criminal and civil settlements of more than $60 million.

Ho ho.. Interested to see if he can climb out of this hole

Ho ho.. Interested to see if he can climb out of this hole

tal faham a word even here

eli5 plz

Why is the candlestick the wrong colour? Going down should be red, this one is green.

1. bad risk management
2. over-leveraged.
3. failed psychology control.
4. inadequate technical control.

not sure the basis of his trade.
was it price action dude or technical side.

from the chart can clearly see MA crossover to short position.
there was no flash attack manipulation.

he stuck to his trade for an additional of 3 candles.
looks like a daily candle - so that about 3 days of him holding for miracle.

any decent strategy or system would have got out at the second candle going down.

He isn't a day or position trader.
Insider dude.
And those are caused by his margin call sell off rather than active position.

Goldman Sachs liquidated US$10.5 billionworth of stocks
in block trades on Friday, part of an extraordinary spree of selling that erased US$35 billion from the values of bellwether stocks ranging from Chinese technology giants to US media conglomerates.
The Wall Street bank sold US$6.6 billion worth of shares of Baidu, Tencent Music Entertainment Group
and Vipshop Holdings before the market opened in the US, according to an email to clients seen by Bloomberg News. That move was followed by the sale of US$3.9 billion of shares in ViacomCBS, Discovery, Farfetch, iQiyi and GSX Techedu, the email showed.
More of the unregistered stock offerings were said to be managed by Morgan Stanley, according to people familiar with the matter, on behalf of one or more undisclosed shareholders. Some of the trades exceeded US$1 billion in individual companies, calculations based on Bloomberg data show.
The Financial Times reported that Morgan Stanley sold US$4 billion worth of shares earlier in the day, followed by another US$4 billion in the afternoon, Reuters reported, citing the Financial Times. Goldman Sachs told counterparties that the sales were prompted by a “forced deleveraging,” the UK newspaper added, citing people with knowledge of the matter.
“This was highly unusual,” said Oliver Pursche, a senior vice-president at Wealthspire Advisors, which manages US$12 billion in assets. “The question now is: Are they done? Is this over? Or come Monday and Tuesday, are markets are going to be hit by another wave of block trades?”
In block trades, large volumes of securities are privately negotiated between parties, usually outside open market.
Maeve DuVally, a Goldman Sachs spokeswoman, declined to comment. A spokesperson for Morgan Stanley declined to comment. A person reached at Archegos’s New York office on Friday declined to comment. An email sent to Hwang seeking comment was not returned.
Wall Street is now collectively speculating on the identity of the mysterious seller or sellers. The liquidation triggered price swings for every stock involved in the high-volume transactions, rattling traders and prompting talk that a hedge fund or family office was in trouble and being forced to sell.
Several major investment banks with ties to hedge fund Archegos Capital Management liquidated holdings, contributing to the slump in share prices of ViacomCBS and Discovery, IPO Edge reported, citing people it did not identify. CNBC said forced sales by Archegos were probably related to margin calls on heavily leveraged positions.
New York-based Archegos is controlled by former Julian Robertson protégé and Tiger Management analyst Bill Hwang.
Shares in ViacomCBS and Discovery tumbled around 27 per cent each on Friday, while US-listed shares of China based Baidu and Tencent Music plunged during the week, dropping as much as 33.5 per cent and 48.5 per cent, respectively, from Tuesday’s closing levels.
Baidu, China’s dominant Internet search-engine company, made its secondary listing debut
in Hong Kong on March 23, and ended the week at HK$214, or 15.1 per cent below its IPO price. Its American depositary shares fell 19 per cent during the week to US$208.61.
Goldman Sachs, BofA Securities and Citic Securities were the joint global sponsors, coordinators, bookrunners and lead managers of the offering that soaked up HK$23.7 billion in net proceeds from local retail and foreign institutional investors.
Eric Handler, an analyst at MKM Partners, who covers Discovery, said that large blocks of shares in both Viacom and Discovery companies were put in the market on Friday, likely exacerbating the declines.
Friday’s sell-off dragged companies including Alibaba Group Holding (the owner of this newspaper) and NetEase lower. The peers later recovered after traders said word of the offerings lessened fears that a broader trade was unfolding throughout the sector.
That late rebound pushed up an index of companies engaged in internet-related businesses in China and the US, with the measure halting a three-day sell-off while still notching a slide of about 6.5 per cent for the week.
Chinese stocks have been under pressure after a warning from the Securities and Exchange Commission that it is taking steps to force accounting firms to let US. regulators review the financial audits of overseas companies. The penalty for non-compliance is ejection from exchanges.

he got into margin call because he didn't exit his trade after initial reversal.

No, he got into margin call because of stock dilution from viacom.
This is a fund trading, totally different from your position based trading.
The reversal is caused by his own margin call.

so much fund but he go all hand-in.
i will always keep at least 80% margin available for situation like this.

reading stock trading stories like this reminds me of reading my form6 Kimia textbook

haram jadah tak paham langsung

asid + alkaline = salt + water
chemestry numba1~

ini baru level form 4 during my days.

should be switched to level form 1-3 by today's syllabus.

ini baru level form 4 during my days.

should be switched to level form 1-3 by today's syllabus.

If me got 8 billion I will buy /k from vijandren ramadass and ban ukeke keluarpattern and judehow.

The higher you aim the harder the fall. For my aim, the worst is they all go 14th floor coz feel unfair and their parents sue me je.

Suiting his Asian behavior, he is a gambler

Gambler is already a BIG RED FLAG

What does it mean Asian behavior?

Asians are some of the biggest gamblers in the world. Gambling is such a usual feature of life among many Asians that they consider it a tolerable, if normal, part of their culture.
Today, Asian immigrants to the United States and other Western countries have brought their gambling habits with them. Often locals are unable to keep up with the Asian passion for gaming. Many casinos in the State of California, for example, say that Asians account for a whopping 80% of their patrons.

got wat in form 6?

If me got 8 billion I will buy /k from vijandren ramadass and ban ukeke keluarpattern and judehow.

The higher you aim the harder the fall. For my aim, the worst is they all go 14th floor coz feel unfair and their parents sue me je.

They don't see gambling as a vice but risk taking is necessary, and good indeed if you can reap in profit.

Why is the candlestick the wrong colour? Going down should be red, this one is green.

so how the heck can he still get margin / leverage after being banned from trading?

i think everyone missing point here...
BBB or SSS sifus?

tal faham a word even here

eli5 plz

so how the heck can he still get margin / leverage after being banned from trading?

dude borrow money to gamble on stock market, stock market go down, banks liquidate his holdings (margin call) to avoid losing money, market sold off even more.

moral of the story, don't borrow other people's money to gamble.

all margin call is loan?

Chyna punya company. lel..

anyone dare buy Chinese stock is asking for suicide..

Let's say you got $10, they let you borrow $100 to buy stock out of the $10 you have, so 1:10 leverage.
You use all $100 to buy in a stock, now the stock drop 25% due to dilution, so they ask you to come out with $25 in cash to cover the losses, you don't have the money to pay back so they have to sell all in the market to recover money and you still owe them for the outstanding amount.

fark

so if can pay dat 25 wat happen

Let's say you got $10, they let you borrow $100 to buy stock out of the $10 you have, so 1:10 leverage.
You use all $100 to buy in a stock, now the stock drop 25% due to dilution, so they ask you to come out with $25 in cash to cover the losses, you don't have the money to pay back so they have to sell all in the market to recover money and you still owe them for the outstanding amount.

all margin call is loan?

- He was also heavily invested in Chinese tech stock, and the margin call caused a significant fallout in China.

Chyna punya company. lel..

anyone dare buy Chinese stock is asking for suicide..

Good time to buy. PRC only going upward in long run

not 10:1 leverage?

Then can cover, nothing happens, you still hold the stock.

technically, no. It isn't even a loan.

Margin call is just additional & available funds that sits inside your broker trading account.

Think of it as a credit card. The money is there for you to spend to buy more stocks. But one rule, you must have at least remaining 40% balance at all times.

If you don't have 40%, then you are required to top up with money of your own until it goes to 40%. Otherwise, the broker will liquidate your stock position to reach back to 40% of available balance.

so loan n use til 50% oni lah?

meaning pokai fiat all car house gone,but still hodlin the stock oni 1 left?

meaning pokai fiat all car house gone,but still hodlin the stock oni 1 left?

Aka Melvin capital special. Holding on GME short position by throwing billions and billions of dollars in an attempt to drive price down.

More than died and price didnt even drop. Lel.

"...doing what Asians do..."

"Suiting his Asian behavior,..."

I lol at TS' not-so-subtle intent on framing Asians(in this particular case, East Asians) as Jews 2.0.

Melvin capital down 4.5 billion only.
This one is private fund, estimated 15 billion and still counting.

Jews do not gamble, you go casino around the world and see who are the whales?

How you know how much Melvin is down?

They havent covered their short positions yet.

Instead, they pump in billions more and get other HF to dump big money into short contracts.

The amount is insane.

Already covered long long time already. Have to report CFTC.
As a general rule, all funds have to close all position if it was down more than 50%.

2 weeks is long run for you?

This report isn't the latest. Since then, Melvin and a whole bunch of HF shorted more position in GME.

Jews do not gamble, you go casino around the world and see who are the whales?

all margin call is loan?

Money is just rich man game. U think what happen to him after this? Masuk jail? Beg on the streets? He just gonna declare bankrupt and move on with his life living in mansion and makan buffet everyday. Asset already masuk wife name.

reading stock trading stories like this reminds me of reading my form6 Kimia textbook

haram jadah tak paham langsung

The color red is actually closed higher than open rite...?

TLDR:
- Bill Hwang is a Korean trader worked at the legendary hedge fund manager Julian Robertson's Tiger management, doing what Asians do, he quit the company and went out to set shop after learning a few tricks; suiting his cringy behavior, he even named his fund as "Tiger Asia" .
- He turned out to be a very crooked trader, and committed insider trading by short selling three Chinese bank stocks based on confidential information they received in private placement offerings, he was fined 44 million and banned 5 years from trading since 2013, he was so crooked that Goldman Sachs blacklisted him from doing business with them.
- He set up a new fund named Archegos Capital after finishing the 5 year ban.
- Suiting his Asian behavior, he is a gambler who take high leverage in trading, his margin raised from 1.5 billion to 5 billion in 2020 and from 5 billion to 15 billion in the first 3 months of 2021.
- His portfolio including Viacom and Discovery, it is rumoured that he shorted Gamestop as well.
- Viacom had been profiting from streaming business because people stay home and watch TV during Corona, stock rose from $12 to $100 in a year. The boss look at all the money and decided to issue $3 billion new shares and new price is $85 per share, investment firm downgraded the stock and the stock losses more than 50% of value (Now around $48).
- Bill Hwang and Archegos facing margin call and their position had to be liquidated, since price drop further with their margins adding to the losses.
- His losses amount to $15 billion USD out of $8 billion of his own capital.
- Because of his previous ban and crooked reputation, he couldn't find people to invest in him, and can only operate out of family office only (ie own and friend's money), the losses is likely the largest amount ever lost by a single investor.
- He was also heavily invested in Chinese tech stock, and the margin call caused a significant fallout in China.