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Ex-Archegos Staffers Plan New Fund

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Date: 2021-06-09 12:22:30

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Just three months after Bill Hwang’s Archegos Capital fund collapsed two of its ex-staffers are reportedly preparing to test the hedge fund's strategy all over again.

Jensen Ko and Sterling Clay, who worked at Archegos until its implosion in March, are preparing to launch a new fund using Hwang’s highly-leveraged investment style, the «New York Post» reported on Wednesday, citing people with direct knowledge of the plans.

Ko, who didn’t respond to a request for comment from U.S. paper, worked at Archegos with Hwang for over 13 years as chief operating officer, and later as its chief technology officer, according to his LinkedIn profile. Clay, who declined to comment to the paper, was an associate director at Archegos for almost three years, according to LinkedIn.

Aiming For Outside Money

The sources familiar with the plans told the paper Ko and Clay planned to use their own money over the next year to establish a track record of lucrative but reliable investments with the goal of eventually raising money from outside investors.

Archegos Hit Swiss Banks

The collapse of Archegos resulted in a $5.5-billion loss for Credit Suisse. The Archegos debacle combined with the implosion of Greensill Capital meant the bank had to tap weighty investors for a top-up, as a series of executives have resigned or been demoted or ousted.

UBS said in its results statement in April that a U.S. hedge fund client – likely Archegos – sliced $434 million off its net profit.

Original Source: https://www.finews.com/news/english-news/46592-archegos-fund-credit-suisse-nomura-ubs