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Soros buys stocks linked to Bill Hwang's Archegos collapse: Bloomberg News

Published 05/15/2021, 07:28 PM
Updated 05/15/2021, 07:30 PM
© Reuters. FILE PHOTO: FILE PHOTO: Billionaire investor George Soros speaks to the audience at the Schumpeter Award in Vienna, Austria June 21, 2019. REUTERS/Lisi Niesner/File Photo/File Photo
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(Reuters) - Billionaire George Soros' investment firm, Soros Fund Management bought shares of ViacomCBS (NASDAQ:VIAC) Inc, Discovery (NASDAQ:DISCA) Inc and Baidu Inc (NASDAQ:BIDU) as they were being sold off during the meltdown of Bill Hwang's Archegos Capital Management, Bloomberg News reported on Saturday.

The fund bought $194 million of ViacomCBS, Baidu stock valued at $77 million, as well $46 million of Vipshop (NYSE:VIPS) Holdings Ltd and $34 million of Tencent Music Entertainment Group (NYSE:TME) during the first quarter, the report said https://bloom.bg/2RUQQJZ citing a regulatory filing released on Friday.

The company didn't hold the shares prior to Archegos's implosion, a person familiar with the fund's trading told Bloomberg.

© Reuters. FILE PHOTO: FILE PHOTO: Billionaire investor George Soros speaks to the audience at the Schumpeter Award in Vienna, Austria June 21, 2019. REUTERS/Lisi Niesner/File Photo/File Photo

Archegos, a family office run by ex-Tiger Asia manager Bill Hwang was highly exposed to ViacomCBS, whose shares plunged in March, leaving the hedge fund facing a massive margin call from its prime broker banks. Archegos was unable to meet the call to secure the equity swap trades that the banks had partly financed.

Global banks lost nearly $10 billion from the Archegos fallout. Credit Suisse (SIX:CSGN), Nomura Holdings (NYSE:NMR) and Morgan Stanley (NYSE:MS) were some of the banks that were hit.

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