Towards insolvency
The Archegos hedge fund founded in 2014 by speculator Bill Hwang is preparing for bankruptcy. This was reported by the Financial Times, which cites two sources close to the dossier. Archegos Capital is reportedly preparing for insolvency, triggered by attempts by investment banks to recover part of the $ 10 billion lost in March due to a failed investment package. Archegos, according to the two sources in the Financial Times, has hired consultants to evaluate the potential requests of the banks and to plan a possible reduction of its operations. Archegos’ most unscrupulous tool was the use of financial leverage, leverage, to have greater financial resources starting from a small capital. The fund had managed to manage masses of capital of between 50 and 100 billion dollars.
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