- Shares of ViacomCBS, Discovery fell as much as 35% Friday
- Goldman Sachs offered very large block shares of ViacomCBS Friday afternoon – Sources
- Multiple prime brokers sold shares aggressively Friday afternoon
- Archegos typically employs high leverage on its stock positions
- ViacomCBS earlier this week conducted large secondary offering
Hedge Fund Rumored to have gotten margin called; Forced to Liquidate over 30 Billion in assets; Some stocks heavily discounted. Over the last week, some stocks experienced sudden, extreme sell pressure: $BIDU, $IQ, $TME, $VIAC, $VIPS, $YY This is rumored to be caused by forced liquidation from one highly leveraged hedge fund: Archegos Capital. A liquidation of holdings at several major investment banks with ties to Tiger Cub Archegos Capital Management LLC contributed to an unseen daily decline Friday in shares of stocks including Discovery, Inc. and ViacomCBS Inc., according to people familiar with matter. Shares of media conglomerate ViacomCBS fell 26% while Discovery dropped 27% Friday, recovering from far steeper losses. The degree of the declines was unprecedented and occurred in an otherwise orderly market. Early selling came through so-called block trades from Goldman Sachs & Co., which offered over 30 million shares of ViacomCBS in midday trading. Morgan Stanley, earlier in the day, offered over 15 million shares of Discovery, according to people familiar with the matter.
The common thread is defunct Tiger Asia Management LLC founder Bill Hwang, who now runs Archegos Capital. His fund was and may still be an large owner of shares in both ViacomCBS and Discovery. Mr. Hwang did not respond to phone calls, emails, or Bloomberg messages sent by IPO Edge. Mr. Hwang’s fund is known employing leverage, meaning it borrows to invest in more securities than it could own with its own capital. One person familiar with the matter said Mr. Hwang’s fund received a margin call from one of the investment banks – not necessarily Morgan Stanley or Goldman Sachs – and was unable to meet it. As a result, that bank and others began to liquidate stocks owned by Archegos. Several other stocks swooned Friday for no apparent reason, but may be related to Mr. Hwang’s fund, which focuses on telecom, media, and technology, or TMT. Nick Note: You have been in a war with hedge funds trying to take the market against the grain. As i have been warning you these assholes are not almighty. They get margin calls too. Its a war of attrition. How long can we hold our positions is critical. If we would have spread this trade we would have played into their hands. When i declared the bottom… That is when their algorithms threw in desperation hundreds of billion trying to sink the market. That was on March 3, where the low was put in at 12200. I declared that a bottom. I can tell you i got death threats, because on no small part my getting you to hold and BUY we fucked them good. Its was a forced 10% correction that failed.
They were counting on a continued drop of a 20% . A EPIC CORRECTION THEIR ALGOS WERE PREDICTING. i GOT YOU TO NOT ONLY HOLD BUT BUY MORE. AND IT FUCKED THEM GOOD!
How many times do i have to scream at you that was a bottom….. and rob a bank. This is where millions are made in a trade. You might notice we went dark… WHY because whether you realize it or not the Hedge Funds know what a great danger we are to them. We keep a hold in the market when they are desperately trying to blow them out. Look you are seeing many MANY 100 billions of hedge funds entering forced liquidation. And guess who is their enemy….. Who else told you about this ahead of time…. Charles Schwab? Etarde?…. How about Raymond James? Did Fidelity give you a call? People on the inside new. And I new and told you the bottom was in documented and signed my name to it! they are keeping things very quiet. Friday was a blow up. Billions hundreds of billions of Hedge fund trades are underwater and facing FORCED liquidation which is what you saw STARTING on Friday. What you saw was shorted against our trades being liquidated…… Forced liquidation on the close and for a fact it was record liquidation. I new, so why do i have to suffer when i am the ONLY one giving you a seat at the table. This will be one of the greatest trades ever… And your sitting their doubting me……. And yes their will be volatility… SO!