Archegos story is nuts, could see next collapse driven from a network of hedge funds or individuals engaging in high leveraged risky bets

How many hedge funds are a margin call away from Archegos-style implosion?

Archegos story is nuts, could see next collapse driven from a network of hedge funds or individuals engaging in high leveraged risky bets How many hedge funds are a margin call away from Archegos-style implosion? One of the scariest things about Archegos' fall from grace is there could be others. https://qz.com/1991073/

These were hugely leveraged trades.  Not actual stocks but derivatives (CFDs) which are illegal for retail traders in the US, but not for hedge funds.  That’s also why they were so hidden without having to disclose those stakes to regulators, which it would have had to do with regular stock positions of that magnitude

This was a family office. People take bigger risks when it’s their own money

Nikolas Kong

And the hedge funds I know all spend a lot of money for risk management

I don’t think that many hedge funds employ an options strategy

Like distributed group think around risk, rather than centralized to big banks

D J

A group of likeminded people in The Most Important Thing are talking about this.