Up until recently, the website of Archegos Capital Management, the firm behind a reported $30 billion financial firesale that is battering stocks worldwide, contained a giant image of Central Park. The vista displayed on Archegos’ webpage was a fitting homage to the views of its offices atop a Manhattan skyscraper on 57th street, until the site was taken down as the firm gets liquidated. Archegos was a giant in U. S. financial markets, apparently holding tens of billions of dollars in securities, including massive exposures to companies like ViacomCBS, Discovery Communications and Baidu. It traded with Wall Street’s largest brokerages, and was headquartered at an expensive address housing many powerhouse investment firms. But when it came to routine financial disclosures, Archegos was virtually non-existent. Forbes searched for a trace of Archegos on the Securities and Exchange Commission’s repository for securities filings, called EDGAR, short for Electronic Data Gathering, Analysis, and Retrieval. Amazingly, almost nothing came up. EDGAR is the sunlight in U. S. financial markets. Companies must disclose material information in filings uploaded to the site. Corporate insiders and large investment funds report their holdings and any changes to their positioning. Most all public capital raises are documented on EDGAR, and all sorts of entities reveal themselves on it. EDGAR is an informational treasure trove. That is, except when it comes to Archegos and its founder and co-CEO Sung Kook (Bill) Hwang. Forbes could not find a single filing from Archegos, despite its whale-sized positioning that banks like Goldman Sachs and Morgan Stanley now are in the process of unwinding. It would have been good to know about Hwang and the seemingly breathtaking risks he and his firm were taking. Educated in the U. S., Hwang made a name for himself in the 1990s and early 2000s at Julian Robertson’s famous hedge fund Tiger Management. After building a resume at Tiger, he broke off and founded his own hedge fund called Tiger Asia in 2001, reportedly with backing from Robertson. Hwang’s firm was a “Tiger cub,” a term insiders use to describe the dozens of hedge funds with DNA that traces to Robertson’s legendary firm. Tiger Asia became one of the largest investors in Asian financial markets, managing billions of dollars in assets at its peak. Then it all came crashing down. In 2012, the Securities and Exchange Commission, brought an insider trading and market manipulation case against Hwang and his Tiger Asia. The firm and its founder agreed to pay $44 million in total fines and penalties. Tiger Asia Management, the management company, admitted to breaking the law. The SEC’s probe effectively put Tiger Asia out of business. So in 2013, Hwang converted the firm into a “family office,” set up to manage his private wealth. The family office, Archegos Capital Management, appears to be massive, not just in size and scope, but also in risk appetite.
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