How Bill Hwang who Lost 20 Billion In Just 2 Days! | Biggest Hedge Fund Fail | Bill Hwang Story , Biography ,Reason of fail

Who was Bill Hwang?

How did Tiger Management fail?

How did Archegos Capital Management start by Bill Hwang?

Until recently Bill Hwang was one of the biggest and perhaps less known fortunes on Wall street

Hwang, a 57-year-old veteran investor, managed $10 billion through his private investment firm, Archegos Capital Management.

How did Archegos capital came into the picture?

Goldman Sachs sold client's shares worth $ 10 Billion, and these included Media companies and Chinese banks, and the culprit behind this were Bill Hwang ran Archegos Capital Management. Nomura and Credit Suisse were also affected in this.

Tiger management ran by Julian Robertson helped its employees start their own hedge funds which lead to the inception of some of the biggest Hedge Funds of the US, which were Maverick Capital, Tiger Global, Coatue Management, Blue Ridge Capital.

SEC caught Bill Hwang for insider trading and fined and then fined him $16 Million.

Reasons for the Big loss!

He used CFD (contract for difference) contract. CFD are like Futures, but futures are regulated and operated via the stock market, while CFD is over the counter and can be done with a broker. 

Archegos capital invested heavily in ViacomCBS via CFD. Due to some issue with stakeholders of Viacom CBS, Archgos Capital occurred huge losses when ViacomCBS's share price plunged by 55 % and hit a Margin call. This resulted in losses of Rs 1.5 lakh crores in just 2 days.