George Soros’s Investment Company, which shares sold off during the collapse of Bill Hwang’s Archegos Capital Management, exited the positions.
What Happened: According to a regulatory submission, the company has sold $194.3 million of CBS Corporation (NASDAQ: VIAC), $77 million of Baidu Inc. (NASDAQ: BIDU) shares, and $46.4 million of stock in Vipshop Holdings Ltd (NYSE: VIPS), Bloomberg reports.
The company also liquidated its positions in Tencent Music Entertainment Group (NYSE: TME) and Discovery Communications Inc (NASDAQ: DISCA).
George Soros reportedly snapped up stocks that took a hit amid the collapse of Archegos Capital Management in March.
Archegos fell apart in March after amassing large leveraged positions in a concentrated portfolio of U.S. and Chinese companies.
Archegos-linked stocks have plunged during the second quarter. Vipshop collapsed by 33% in the three months through June, Tencent Music tumbled about 24%, Discovery dropped nearly 21%, and Baidu fell 6.3%.
George Soros’s Chief Investment Officer Dawn Fitzpatrick said she’s willing to jump on dislocations in the market and “not just double down but triple down when the facts and circumstances support that.”
A person familiar with the fund’s trading told Bloomberg that the company didn’t hold the shares before Archegos’ implosion.
Why It Matters: Hwang ran a family office that imploded in March and caused massive losses at a few big banks when Archegos couldn’t meet margin calls. Archegos had more than $20 billion of capital and total bets exceeding $100 billion.
Global banks lost nearly $10 billion from the Archegos fallout. Credit Suisse Group AG (NYSE: CS), Nomura Holdings Inc (NYSE: NMR) and Morgan Stanley (NYSE: MS) were among the hardest hit.
Image Credit: CC BY 2.5, Wikimedia Commons
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