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Thread: Liquidation Sale

  1. #1

    Default Liquidation Sale

    From a tweet:

    A Korean top prop trader Bill Hwang was liquidated of his entire 15B position on over 80B gross national exposure yesterday

    More: https://twitter.com/DoveyWan/status/1375769056486203394

    If you are looking into building up position of $BIDU$TME$VIPS this is a pretty sweet BTD opportunity
    Take a look at the charts of these. Big discounts...

    Watch them pop on Monday.

    For example:

    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor. Please do your own due diligence.


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  3. #2

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    Default Re: Liquidation Sale

    I'd imagine this is more a shot across the bow than a buying opportunity. It's not good that a hedge fund exploded in a bull market.

    Also, there's probably additional margin calls across the spectrum that will weigh on anything this fund held for a while.

    I got stopped out of one of my holdings thanks to this blow up. It looked like the selling was subsiding on Thursday, but then come Friday and I haven't seen an avalanche like it in an individual stock since 2008. Luckily, I still managed to get a triple digit return (around half being LT cap gains). A bit disappointing because I planned on holding for a long time (and that was over a year before the February squeezes higher), but it just goes to show you can't fall in love with any stock.

    This same kind of crash will happen to TSLA some day.

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  5. #3

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    Default Re: Liquidation Sale

    Goldman unloaded $10.5B in stocks on Friday in block trades, a relic of the pre-HFT days. I'm wondering now how many other funds got blasted in the carnage. These weren't penny stocks like AMC and GME.

    https://www.bloomberg.com/news/artic...ck-trade-spree

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  7. #4

    Default Re: Liquidation Sale

    Quote Originally Posted by Bullitt View Post
    Goldman unloaded $10.5B in stocks on Friday in block trades, a relic of the pre-HFT days. I'm wondering now how many other funds got blasted in the carnage. These weren't penny stocks like AMC and GME.
    Could it be the same guy?

    Wall Street is now collectively speculating on the identity of the mysterious seller or sellers.
    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor. Please do your own due diligence.

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  9. #5

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    Default Re: Liquidation Sale

    Certainly possible. Hedge funds are always veiled in secrecy and I don't see a 13F filing for this "tiger" fund anywhere so who knows what kind of financial alchemy was being used.

    Maybe Goldman was making this guy's market and decided to unload his shares. I definitely won't rule out other funds front running the sell side of things. Those stocks were also fully engulfed in the algo frenzy and reddit craze. When a stock drops by 15% plus on consecutive days, massive amounts of money is being lost. Sure, a retail investor with 100 shares can get out with a few scratches, but a large fund (especially) with leverage, could take a few trading days to unwind.

    This has eerie memories of 2007, except in 2007 those securities were not liquid. The market did brush it off then and head to new highs before history was made. In both cases you have to ask yourself, "How does a hedge fund with long positions get wiped out in a bull market?" It wasn't like they invested in some Chinese company that turned out to be fraudulent.

    https://www.wsj.com/articles/SB118252387194844899

    A lot I don't like here. "Value" stocks have turned into momentum trades and ARKK type stocks lagging severely. Everyone's talking about NFT's and baseball cards are going for thousands of dollars again. Maybe things will turn, but with small caps also underperforming, there are headwinds out there today that weren't there in December.

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  11. #6

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    Default Re: Liquidation Sale

    Credit Suisse (NM) and Nomura (NMR) set to open 10%+ lower after announcing "trading losses". Understandable in March 2020, but not right now in what is to be seen as a bull market.

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  13. #7

    Default Re: Liquidation Sale

    ViacomCBS (VIAC) made a new high last Monday near $102. It's currently trading near $46 in premarket.
    Tom
    Market Commentary | My Blog | TSP Talk Plus | |

    I am not a Registered Investment Advisor. Please do your own due diligence.

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  15. #8

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    Default Re: Liquidation Sale

    Only down 7% today.

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  17. #9

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    Default Re: Liquidation Sale

    Looks like we're getting some answers. No 13F because they owned derivatives, not shares. Financial alchemy, reminiscent to 2007 when things were happening that weren't even understood by the participants.

    How many other banks are going to get hit here? Remember when we were told the CDS market was contained? We'll probably find out more when some of these SPAC lock up periods start to expire because we all know those aren't in a mini-bubble.

    The positions “may have topped $50 billion,” but those weren’t actual stocks, but derivatives based on stocks, called Contracts for Difference (CFD), and Archegos may have never owned any of the underlying stocks, according to Bloomberg this morning, citing people familiar with the matter. This allowed Archegos’ exposure to those shares to remain anonymous until the trades blew up.

    The secretive nature of these trades had the effect that the prime brokers to the fund, such as Credit Suisse, didn’t know about the involvement of other prime brokers, such as Nomura, Deutsche Bank, and Goldman Sachs. And when the forced selling started, each prime broker wasn’t alone in unwinding the positions but was doing so against the other prime brokers trying to do the same thing.

    This blowup is one more sign of just how much leverage has been built up during this market mania, and how exposed investment banks are to this leverage.
    https://wolfstreet.com/2021/03/29/ar...its-the-banks/


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  19. #10

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    Default Re: Liquidation Sale

    From DJ Newswire:

    MORGAN STANLEY DUMPED $5 BILLION IN ARCHEGOS’ STOCKS THE NIGHT BEFORE MASSIVE FIRE SALE HIT RIVALS- CNBC

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