Investment firm Archegos Capital is behind the unusually large sale of more than $ 20 billion in shares of a handful of companies on Wall Street in a single day, the company claims on Sunday. Bloomberg agency.
This company, which manages the fortune of businessman Bill Hwang, on Friday offloaded its shares in American media companies and Chinese companies listed on the New York Stock Exchange on Friday, the agency said. sources close to the case.
These shares were sold “en bloc”, that is to say in large quantities at a price different from that of the market, by the investment banks Morgan Stanley and Goldman Sachs in particular. Such a method is common, but the scale of the transactions carried out on Friday surprised brokers.
These operations contributed to the sharp decline in the shares concerned. The companies ViacomCBS and Discovery plunged about 27% on Friday while the Chinese companies Baidu and Tencent lost as much as 15% and 21% during the session before recovering and ending near breakeven.
According to the Financial Times, which also quotes sources familiar with the matter, Archegos Capital was jostled by the sharp drop on Wall Street earlier in the week from ViacomCBS, in which it held a lot of shares.
This decline led one of Archegos’ brokers to request additional funds to cover the depreciation of this investment and ultimately led Archegos to liquidate some of its positions.
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