Bill Hwang is a multimillionaire who has a huge fortune traverses inversions in various business like good things, sports teams y artwork, between others. A net heritage that provides information from Bloomberg ascanned up to 20 million dollars, but now it’s lost.
Hwang fue el ex CEO de Tiger Asia, is the man who directs the inversion fund known Archegos Capital Management, the cual desato a strong liquidation of his actions the past four, the one that provoked quantities lost to Credit Suisse, Nomura y, possibly, Deutsche Bank and Mitsubishi UFJ, obliging to renew the risk of derivative financial products, which it has recovered from the crisis of Lehman Brothers.
The scandal over the liquidation of the Archegos fund has resulted in an extension between the investment banks in New York, Tokyo and Zurich, although it is the bank Credit Suisse which may be to assume the major mayors for Hwang’s hedge fund operations.
Bank analysts Berenberg estimate that the losses of Credit Suisse podrían superar the 3 mil million dollars.
Para Credit Suisse, which states that losses can be “extremely significant”, this is the second largest error in its investment bank division through finance Greensill Bank, which is declared in bankruptcy by accounting practitioners who have been compared to electricians Enron.
Nomura, the Japanese inversion bank that is part of the operations of Lehman Brothers tras su quiebra en 2008, het die revuado unas perididas de 2 mil millones y este martes su compatriota Mitsubishi UFJ Financial Group dijo que también se have viso afectado et est estimating el agujero que dejó su exposition a Archegos.
Follow me Wall Street Journal, Morgan Stanley y Goldman Sachs dehicieron of its compromises with the “hedge fund” the four passed to limit losses, nevertheless that Archegos liquidate liquidate some positions in losses.
Morgan y Goldman make the most rapid attempts to disassemble your exhibit on Archegos, while others, like Deutsche Bank, Wells Fargo and UBS, habrían conseguido limitar pérdidas a última hora.
The Hwang Tiger
At the center of controversy is the inverse millionaire Bill Hwang, a Korean-American who fortified himself during the crisis of the “Asian tigers” of the 90s and was converted to exit inverse has been living with a denomination of “insider trading” or privileged information traffic, when the manager de Tiger Asia, for which it pays a multitude of 44 million dollars.
Hwang regress to Wall street with Archegos Capital Management, its very personal investor and which operates in secret thanks to derivative financial instruments that allow the adoption of large-scale positions in companies without the need to acquire the titles through the mediation of the affected investment banks, which are subject to change.
The legal fund has accumulated over 40 million dollars in assets over the past week, with a net capital of one 10 million million, the mayor numbering Hwang and his family.
Some analysts, positions of Archegos the fortune has surpassed 50 million dollars, while the Mayor evaporates in the wake of dioceses.
In the opinion of billionaire and ex socio of Goldman Sachs Mike Novogratz, the Archegos’ case is something “never seen”, due to the “quiet, concentrated and rapid disappearance of capital”, in addition to being “the mayor’s personal loss of wealth of the story “for Hwang and his family.
Bajo la lupa
“This is a difficult moment for the family of Archegos Capital Management, our societies and employees. Hwang and his team discussed what is the best truck “, explained the night of March the” hedge fund “in a communiqué.
Hwang’s rapid financial growth has begun with the concentration of an absolute volume of positions on a limited number of shares, between them ViacomCBS, Discovery or the Chinese GSX Techedu, Baidu or Vipshop Holdings.
With the initiation of the chains in ViacomCBS and other positions to begin the week before the commenced losses to accumulate in Archegos, which uses a type of derivative “swap” known as CFD, which with the mediation of a bank allows to take positions on the basis of an action without tener, with all appraisal and high risk if the price is not high.
The CFD or “Contract For Differences” exchanges in the OTC market on the “over-the-counter” between institutional investors in the way of opacity. These actors use their contracts to allow large profits without reserving capital, in addition to holding fiscal sales in the case of United Kingdom.
According to the president of Heritage Capital, Paul Schatz, he was “not surprised” by the markets artificially supported by the Federal Reserve.
In his opinion, it’s a fact that the real man does not exist, it’s a favorite on Wall Street ‘del Salvaje Oeste’.
MRA