Credit Suisse, UBS, Nomura, MUFJ and Morgan Stanley Losses for Archegos Family Office Nears $10 Billion
Hong Kong | 28th April 2021
In Q1 2021, Korean-American Bill Hwang’s Archegos family office, which operates like a hedge fund, has caused leading global banks including Credit Suisse, Nomura, Mitsubishi UFJ Financial Group (MUFG) and Morgan Stanley to incur trading losses in their Q1 2021 earning results, with total combined losses nearing $10 billion ($9.84 billion). (AUM ~ Assets under Management)
” Credit Suisse, UBS, Nomura, MUFJ and Morgan Stanley Losses for Archegos Family Office Nears $10 Billion “
- Credit Suisse Raises $1.92 Billion in Capital, $5.5 billion Losses from Archegos Family Office
- Credit Suisse and Nomura in $6 Billion Hit by Bill Hwang Archegos Family Office
- HSBC UK Faces $1.61 billion Lawsuit for Tax-Efficient Disney Films Investments
- 20 Traders Who Lost More than a Billion
Credit Suisse, UBS, Nomura, MUFG, Morgan Stanley Suffers $9.84 Billion in Losses
For Q1 2021, the total losses from Archegos nears $10 billion ($9.84 billion) with Swiss banks Credit Suisse, reporting a loss of $5.5 billion and raising $1.92 billion in capital and UBS reporting $861 million in losses. Japanese banks Nomura reported a loss of $2.3 billion and MUFG reported a loss of $270 million. American bank Morgan Stanley also reported a $911 million loss in its Q1 2021 earnings.
Reported Losses from Archegos Family Office:
- Credit Suisse: $5.5 billion
- UBS: $861 million
- Nomura: $2.3 billion
- Mitsubishi UFJ Financial Group (MUFG): $270 million
- Morgan Stanley: $911 million
Archegos Family Office – $50 Billion to $100 Billion Stock Positions
Bill Hwang’s family office is Archegos Capital Management, which has around $10 billion of assets and stock positions of $50 billion to $100 billion. The total stock positions held by Archegos Capital Management in numerous banks were estimated to be between $50 billion to $100 billion, leveraged from assets of about $10 billion (5x to 10x leverage). This is one of the largest publicly known margin call in history by a family office, with the unwinding of more than $20 billion of stock positions and $5 – $10 billion of losses incurred by banks and possibly $10 billion of losses by the family office.
With falling share prices, margin calls were made to meet collaterals requirement on Archegos Capital Management in the last weeks of March 2021. More than $20 billion of stock positions were estimated to be unwinded. This sparked a sell-off in companies such as ViacomCBS, Discovery, Baidu, Tencent, GSX Techedu and iQiyi – further driving down collateral values that support the leverage.
Caproasia Institute estimated the total number of family offices in the world to be more than 15,000 in 2020. Billionaires and UHNWs setup family offices, with assets ranging from $300 million to $3 billion, and some with more than $10 billion assets. Newer family offices are also setting up family offices with $20 million to $100 million.
Bill Hwang, ex-Hedge Fund, Insider Trading, $44 million Settlement
Korean-American Bill Hwang was under the tutorage of hedge-fund legend Julian Robertson at hedge fund, Tiger Asia Management and Tiger Asia Partners with around $5 billion AUM (Assets under Management).
In 2012, the hedge fund was shutdown by United States and Hong Kong for insider trading and manipulating Chinese banks stocks. A $44 million settlement by Bill Hwang and the hedge fund was made with the United States Securities and Exchange Commission (SEC), and Bill Hwang was barred from the investment advisory industry.
Thereafter, Bill Hwang setup his family office, Archegos Capital Management.
Sign Up / Register
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 10,000 Investors & Advisors
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2023 Investment Day
- 28th March 2023 - Hong Kong
- 4th April 2023 - Singapore
- April 2023 - Virtual
- 6th June 2023 - Hong Kong
- 13th June 2023 - Singapore
- Sept 2023 - Hong Kong
- Oct 2023 - Singapore
- Oct 2023 - Hong Kong
- Visit: The Investment Day | Register: Click here
- The Investment Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit