Archegos Capital hedge fund teeters on the brink of collapse

Archegos Capital hedge fund at the centre of £7bn banking disaster teeters on the brink of collapse

By Daily Mail City & Finance Reporter

Published: 21:50 BST, 5 May 2021 | Updated: 22:39 BST, 5 May 2021

The hedge fund at the centre of one of the biggest recent disasters in banking is teetering on the brink of collapse.

Archegos Capital, which managed the money of high-flying financier Bill Hwang, was sent reeling in March after several of its bets turned sour.

It is now preparing for insolvency, according to the Financial Times.

Losses: Archegos Capital, which managed the money of high-flying financier Bill Hwang (pictured) , was sent reeling in March after several of its bets turned sour.

Some of the world’s biggest banks were dragged down in the Archegos implosion, after lending the hedge fund substantial amounts of money.

Household names including Switzerland’s Credit Suisse and UBS, American giant Morgan Stanley, and Japan’s Nomura, MUFG and Mizuho together lost more than £7billion.

Archegos has hired restructuring advisers to prepare to wind down the firm, as the banks weigh up lawsuits to scrape back their losses. 

Several lenders are examining whether they were ‘fraudulently induced’ to do business with Archegos.

Before the hedge fund blew up, Hwang, 57, was estimated to have amassed around £14billion in a highly successful trading career.

Nicknamed ‘Tiger cub’ due to his early days working at the hedge fund giant Tiger Management, Hwang faces one of the biggest-ever losses of wealth.

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