Bill Hwang Had $20 Billion, Then Lost It All in Two Days
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2021 May 12, 10:10am 301 views 8 comments
by Patrick ➕follow (55) 💰tip ignore
https://www.bloomberg.com/news/features/2021-04-08/how-bill-hwang-of-archegos-capital-lost-20-billion-in-two-days
Comments 1 - 8 of 8 Search these comments
1
Blue
2021 May 12, 10:29am
Leverage can go both ways! He is not well connected to get stimulus check.
3
clambo
2021 May 12, 10:51am
What the hell did he roll the dice on?
If he had $200 million in 2013 he could have more than doubled his money in the W5000 Index.
He could live on the $20 million per year after that.
If he had $200 million in 2013 he could have more than doubled his money in the W5000 Index.
He could live on the $20 million per year after that.
4
Tenpoundbass
2021 May 12, 10:54am
Tenpoundbass
2021 May 12, 10:54am
Too much of a convoluted back story to get a true sense of what actually happened to cause his demise. As it didn't seem none of the back story pre 2020 had anything to do with how he lost his fortune. But it happened after Trump was removed from office.
If I had to guess, I would say Xi, didn't like a Han Bloke with billions and billions of dollars, flourishing and using his proceeds to promote Christianity and undermining Communism.
Way to much time was spent by the author trying to assure the reader, that he was under the radar and unknown to the institution what he was doing. What a huge load of horse shit. Xi knew!
If I had to guess, I would say Xi, didn't like a Han Bloke with billions and billions of dollars, flourishing and using his proceeds to promote Christianity and undermining Communism.
Way to much time was spent by the author trying to assure the reader, that he was under the radar and unknown to the institution what he was doing. What a huge load of horse shit. Xi knew!
5
Ceffer
2021 May 12, 11:04am
Ceffer
2021 May 12, 11:04am
Compulsive gambling: the odds always catch up unless you are controlling the market.
8
Rin
2021 May 12, 3:09pm
Rin
2021 May 12, 3:09pm
Patrick says
No, Bill's not a 'great' trader.
The greatest trader, believe it or not, was a junior partner of my hedge firm, prior to him cashing out and moving onto the big show in the City of London.
For the sake of simplicity, let's say him Alex.
Alex was a young graduate of the London School of Economics & got a handle of now control systems could predict zones of entry/exit and congestion. Alex, a control engineering friend, and I put together a system which could make these calculations real-time using concepts in applied chemistry.
Alex, however, didn't always depend on the 'quant' solution. He always kept 4-5 numbers in his head and knew exactly what his risk profile was, for each and every trade.
So yeah, he could have risked more, perhaps gotten a hit ratio of some 75% but instead, took a 60% hit ratio just to show how he could control those 40% losers to have less than half the loss of any winning position.
Guess what? Our strategy worked. The senior partners were floored at the risk management side of our portfolio and our firm was born.
A few years later, Alex cashed out on the tune of some $15-20M USD, and then, worked for a bigger firm in London, earning in the 100s of millions, retiring with a mansion in Kensington/next to Westminster (London's happening area), one in the English countryside, and a third in the Caribbean.
He still does a bit on the side today, as a hobby, but for the most part, he's into sports, traveling, and all that jazz.
In contrast, Bill's a gambler.
Before he lost it all—all $20 billion—Bill Hwang was the greatest trader you’d never heard of.
No, Bill's not a 'great' trader.
The greatest trader, believe it or not, was a junior partner of my hedge firm, prior to him cashing out and moving onto the big show in the City of London.
For the sake of simplicity, let's say him Alex.
Alex was a young graduate of the London School of Economics & got a handle of now control systems could predict zones of entry/exit and congestion. Alex, a control engineering friend, and I put together a system which could make these calculations real-time using concepts in applied chemistry.
Alex, however, didn't always depend on the 'quant' solution. He always kept 4-5 numbers in his head and knew exactly what his risk profile was, for each and every trade.
So yeah, he could have risked more, perhaps gotten a hit ratio of some 75% but instead, took a 60% hit ratio just to show how he could control those 40% losers to have less than half the loss of any winning position.
Guess what? Our strategy worked. The senior partners were floored at the risk management side of our portfolio and our firm was born.
A few years later, Alex cashed out on the tune of some $15-20M USD, and then, worked for a bigger firm in London, earning in the 100s of millions, retiring with a mansion in Kensington/next to Westminster (London's happening area), one in the English countryside, and a third in the Caribbean.
He still does a bit on the side today, as a hobby, but for the most part, he's into sports, traveling, and all that jazz.
In contrast, Bill's a gambler.
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