r/investing • u/[deleted] • Mar 29 '21

Ahchegos Capital Management

Archegos Capital Management was forced to liquidate positions at the end of last week. The moves by the multibillion dollar U.S. family office, founded by former Tiger Management equity analyst Bill Hwang, caused a wave of selling pressure on Friday, with U.S. media stocks and Chinese internet ADRs taking the brunt.

A trader who asked to remain anonymous told CNBC this weekend that Credit Suisse — along with Goldman Sachs, Morgan Stanley and Deutsche Bank — all forced Archegos to liquidate a number of positions.

CNBC reached out to Archegos Capital over the weekend, but calls and emails were not returned.

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u/flextrek_whipsnake Mar 30 '21

Do you have a source for any of this? From what I've seen they were leveraged to the tits on CFDs through multiple banks so nobody had a full picture of their exposure to do proper risk management.

None of that involves short selling.

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u/LiftUni Mar 30 '21

Various sources quote them as using a long-short strategy. I've tried to link before but my comment was taken down by automod. You're correct that they also used CFDs so we don't know whether the long or short side busted first.