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Soros Bought $375MM Of The Shares That Archegos Was Liquidating

DIscovery Class A $8.7MM (200K shares) A look at the prior 13F shows that the fund did not own any of these stocks before the end of the first quarter. As a reminder, Archegos was wiped out and Hwang s fortune evaporated in just a few days after the stock prices of ViacomCBS and Discovery tumbled, triggering margin calls from numerous prime brokers (some of which have leftover exposure to this day), who then sold the stocks in the big block trades. In total, the Archegos blow up which saw the $10BN fund levered as much as 10x as Prime Brokers failed to do any homework on their total exposure, is expected to cost the finance industry about $10 billion, has prompted an investigation by the U.S. Securities and Exchange Commission and caused heads to roll at Credit Suisse Group AG, where the hit exceeds $5 billion.

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Here Comes The Hwangover: Prime Brokers Begin Slashing Hedge Funds Leverage After Archegos Debacle

by Tyler Durden Given that rates have stopped soaring and earnings have been red-hot, many have questioned why Source: Bloomberg We may have found the answer. and it s a major problem for those hoping to buy-the-dip. As momentum charged higher last year, riding a sea of liquidity, every stock market guru bought the junkiest junk. Source: Bloomberg In fact, hedge fund leverage - both gross and net - hit record highs in late April, according to Goldman s Prime Brokerage. And that s a problem going forward, because, as Bloomberg reports, across the entire street, .managers of small hedge funds who lack the negotiating clout of trading whales are grousing. For the little guy especially, the saga will make it harder to borrow money from banks to finance bets.

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