https://markets.businessinsider.com/...1-3-1030254795
Another implosion of a large fund/company.
How badly will this affect bank stocks and other funds?
Hopefully, my 401K funds are not tied to much to Archegos.
https://markets.businessinsider.com/...1-3-1030254795
Another implosion of a large fund/company.
How badly will this affect bank stocks and other funds?
Hopefully, my 401K funds are not tied to much to Archegos.
Epic Margin call. He ran a family office which means he would have a big pool of ultra wealthy investors. Can you imagine having half of your family wealth under his office?
I can’t imagine having my wealth tied to hedge funds like this.
Looks like when Viacom and Discovery really grew this year, he kept borrowing against the stock increase and was multiplying margin.
Hard to believe banks would keep lending him without much to back-up the margin loans.
With Hwang’s past, I don’t know how he could talk the large investors to use him.
Good lesson for all of us. At some point, losses will occur. Don’t get caught with your pants down, when the losses happen.
The scary thing is, this keeps happening and nobody ever learns a lesson. Greed is deadly. I watched a documentary on this family offices. They were supposed to be operated like traditional hedge funds, to give very wealthy a place to park money and earn a stable return with less risk. Looks like that is not what happened here. I am fine using an advisor to give me advice but I would never turn money over to anyone to just invest. Scary stuff.Quote:
Originally Posted by Charles Prestridge
You know the old saying, "if you owe the banks a million dollars, you have a problem. If you owe the banks a billion dollars, the banks have a problem." Only greed and incompetency can explain how the banks allowed this to happen. This firm was able to own up to 15% of these companies. But a big question is why would anyone want to use soo much leverage to buy some of these companies like VIAC and DISCA