Investor Bill Hwang triggered a storm in the stock market last week when his firm, Archegos Capital Management, and its banks, started liquidating big positions in blue-chip companies, according to people knowledgeable about the deals. The sales sent individual stocks swooning and have left at least 2 banks with significant damage.
Archegos is the family investment automobile owned by Mr. Hwang, a former protégé of hedge-fund titan Julian Robertson. Mr. Hwang was a so-called Tiger cub, an offshoot of Mr. Robertsons Tiger Global Management. Mr. Hwang founded Tiger Asia in 2001.
In 2012, Tiger Asia said it prepared to hand refund to investors. Later that year, the company pleaded guilty to a criminal scams charge for using inside details from investment banks to benefit on securities trades. Mr. Hwang and Tiger Asia paid $44 million to settle a related civil lawsuit, The Wall Street Journal reported at the time.
Mr. Hwang turned Tiger Asia into his family workplace and relabelled it Archegos, according to its site.
Mr. Hwang and Archegoss co-chief executive, Andy Mills, didnt respond to demands for remark.