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Home / Business / “He has never moved me like a risk-taker”: Huang Hong Bill’s big bet is dashed

“He has never moved me like a risk-taker”: Huang Hong Bill’s big bet is dashed



In early 2013, Bill Hwang was banned from engaging in US investment business. The authorities claimed that as part of an internal trading plan, his Tiger Asia managed hedge fund violated its promises to some of the world’s most powerful investment banks.

Huang, the pastor’s son, moved from South Korea to the United States when he was a teenager, and quickly rebounded. Studying the Bible with great concentration, he established a family office-Archegos Capital Management-and eventually established tens of billions of dollars in trading positions in Wall Street banks, including some of the transactions in which his old company was accused of cheating.

In recent days, Huang̵

7;s world has collapsed. The bank sold more than 20 billion U.S. dollars in stocks related to its derivatives transactions. Counterparties warned of billions of dollars in potential losses, while colleagues wanted to know how a quiet, thrifty family spent most of their money Christianity became a central figure on Wall Street in chaos.

A South Korean businessman who worked with Hwang in New York said: “He never attacked me as an adventurer.” “But when you hear this, you will find it strange that he has accumulated such a huge amount of money. Wealth, and now it disbands so quickly.”

Huang’s rise is remarkable. According to reports, when he arrived in the United States, he could not speak English. In a conversation with the Sandy Cove government department in Maryland last year, Huang said that he was too much that when his father died at the age of 50, he did not know how to call emergency services.

Nevertheless, Hwang went to the University of California, where he studied economics, and then received an MBA from Carnegie Mellon University.

He started his career at Hyundai Securities and the now-defunct investment bank Peregrine, and then worked as a trader at Julian Robertson’s legendary hedge fund Tiger Management, and then he used teeth.

According to a person working for Huang, according to his personal information on LinkedIn, he joined the company in 1996 and concentrated stock selection in South Korea and parts of East Asia.

Robertson encouraged his students to set up their own company, prompting Huang to declare himself as an “accidental investor.” In 2001, the Tiger Asia fund founded by him and his former boss stood out and became one of Robertson’s most successful “tiger cubs”.

“Bill’s story is the real Cinderella story. He is a devout Christian. He doesn’t even drink beer and donates a lot of money to the church.” Huang’s close friend said. “A few months after he moved from Peregrine to Tiger, Peregrine went bankrupt. Everyone who knew him at that time said that Bill was blessed and protected by God.”

Hwang and his family live in a leafy suburb outside Manhattan in Tenafly, New Jersey, and still maintain close contact with Robertson. According to people familiar with the matter, Robertson wrote to Hwang, who is now in his 50s, to express his concern after Archegos’ troubles appeared.

Robertson told Bloomberg News: “I feel very sad about this.” “I am a loyal supporter of Bill. Anyone can happen.”

Julian Robertson

Bill Hwang is a protégé of Julian Robertson, photo taken in 2009 ©FT

But Huang has encountered trouble before.

In 2012, Huang Yuxi closed Tiger Asia. After being hit by allegations of insider trading, Tiger Asia managed more than $5 billion in funds during its heyday. That year, he pleaded guilty on behalf of the New York company, telegraphed fraud charges filed by the Justice Department, and in January 2013 banned the Securities and Exchange Commission (Securities and Exchange Commission) ban.

Prosecutors said Tiger Asia was allowed to see confidential information before large transactions, which were usually sold at discounts, and these transactions were orchestrated by banks such as UBS and Morgan Stanley. As part of the arrangement, Tiger promised to keep the information confidential, not to trade it. The US authorities said the company changed to short selling and made millions of dollars from it.

Paul Fishman, an American attorney in Newark, New Jersey, said when he was charged in 2012: “This type of criminal activity by the world’s largest hedge fund operator is unacceptable.”

Huang attributes his beliefs to helping him through the difficult times. Last year, he told Sandy Cove Ministries that after the death of the Asian Tiger, he had listened to Bible recordings for several hours, with actor Samuel L Jackson as the narrator.

When Huang re-established the family office, he named it Archegos, which is an ancient Greek word meaning leader. In the Bible, Jesus is described as the archbishop and the “author” of salvation.

Hwang also founded the Grace and Mercy Foundation in 2007, his wife is a director of the foundation, and Archegos co-CEO Andrew Mills is the vice chairman of the committee. The foundation’s tax records show that the foundation has made major donations to Fuller Theological Seminary (Hwang is the trustee’s evangelical institution) and the Bible Museum.

Huang said in an interview five years ago: “My goal is to nurture capitalists who benefit the world that God loves.” “Money is a gift God gives me to share with others.”

Hwang’s bankruptcy last week came after he was unable to meet the margin call requirements for derivatives transactions (known as stock swaps) he entered into with investment banks. These tools give him the opportunity to profit from stock positions without having to personally own the relevant stocks.

The result is full of irony. The banks sold their swap stocks in a block trade. However, companies like Morgan Stanley did not propose to sell millions of dollars in stock to Huang, but instead sold billions of dollars in stock because of him.

Huang did not respond to multiple requests for comment. The fund said, “This is a challenging time for family offices.” . Our partners and employees”.

Additional reporting by Tabby Kinder in Hong Kong and Leo Lewis in Tokyo


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