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Wall Street

Rehypothecated Leverage: How Archegos Built a $100 Billion Portfolio Out of Thin Air… And Then Blew Up…

April 7, 2021 at 5:22 pm

One week after the biggest, and most spectacular hedge fund collapse since LTCM, we now have an (almost) clear picture of how Bill Hwang’s Archegos family office managed to single-handedly make a boring media stock the best performing company of 2021, but then when its luck suddenly ended it was margin called into extinction, leading to billions in losses for the banks that enabled what Bloomberg has dubbed its “leveraged blowout.”…

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