Who is Archegos fund manager Bill Hwang?


Mr Hwang is a former protege of hedge fund titan Julian Robertson, who founded Tiger Management in 1980 and turned an initial $8.8 million investment from family and friends into nearly $22 billion before moving on. take a step back almost two decades later. A number of investors trained by Mr. Robertson who later set up their own hedge fund companies became known on Wall Street as the “Tiger cubs”.

Has Bill Hwang been charged?

Archegos Capital Management founder Bill Hwang and chief financial officer Patrick Halligan have been charged with securities fraud, wire fraud and racketeering, federal prosecutors in Manhattan announced Wednesday.

Prosecutors alleged that the men participated in interrelated schemes to illegally manipulate the prices of publicly traded securities in Archegos’ portfolio and to defraud major global investment banks and brokerage houses.

They alleged that Mr. Hwang’s fraud caused Archegos’ portfolio to grow from $1.5 billion to $35 billion in one year. An indictment charging the two men was unsealed Wednesday morning.

Federal prosecutors were to announce the charges at a morning press conference.

It is estimated that Archegos managed around $10 billion.

Mr. Hwang has managed around $10 billion of family money through Archegos. The company has made big bets on public stocks in the United States, Europe and Asia. The unwinding of his positions caused sharp falls last week in many stocks, including ViacomCBS Inc..

and Discovery Inc., even as broader markets grew.

Bill Hwang previously managed Tiger Asia.

Mr. Hwang founded Tiger Asia Management LLC in 2001 with support from Mr. Robertson. The company was based in New York and became one of the largest Asian-focused hedge funds, with over $5 billion at its peak. In 2008, he was part of a swathe of funds that suffered losses linked to the soaring share price of German Volkswagen AG..

He paid to settle an insider trading case.

In the summer of 2012, Tiger Asia said it planned to exit and return outside capital to investors. Later that year, the company pleaded guilty to a criminal fraud charge and agreed to pay $44 million to settle civil allegations by U.S. securities regulators that it had engaged in misdemeanors. insiders on shares of Chinese banks.

“Tiger Asia regrets the actions for which it accepts responsibility today and is grateful that this matter is now resolved and behind it in the United States,” Hwang said in a statement at the time.

He made Tiger Asia his family office and renamed it Archegos, according to his website.

He wants his investments to benefit society.

Mr. Hwang is a Christian and has spoken publicly about his faith. In a 2018 YouTube interview, he said one of his goals was “to try to be a great investor.” He also said he invests in companies that benefit society.

He remembers being a big investor in LinkedIn, which he described as helping people realize their professional potential. “Do I think God loves him?” Of course!” he said. “I am like a little child looking for what I can do today, where can I invest, to please our God?

He came to the United States from South Korea after high school.

Mr. Hwang, believed to be in his 50s, immigrated to the United States after his senior year of high school in South Korea. He attended UCLA and later earned an MBA from Carnegie Mellon University. His father, a pastor, died aged 50, according to a 2018 interview with Mr Hwang in South Korean newspaper Kukmin Ilbo.

The billionaire said in the interview that his business calamities a decade ago reignited his interest in Christianity and that he uses his foundation to sponsor churches in the United States and South Korea. The foundation’s tax records show that it has supported various Christian, Korean and Asian-American causes in recent years.

“I decrease the amount of money under my name, in order to do things that God loves,” he said in the 2018 interview. “I do it because I love God more than money. .”

How Archegos shook up the markets

Write to Juliette Chung at juliet.chung@wsj.com

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