Soros Fund Management bought $ 194 million of ViacomCBS Inc., Baidu Inc. shares worth $ 77 million, as well as $ 46 million from Vipshop Holdings Ltd. and $ 34 million from Tencent Music Entertainment Group during the first quarter, according to a regulatory filing released Friday. A person familiar with the fund’s trading said the company did not own the shares before the implosion of Archegos.
Archegos, the family office of former hedge fund manager Hwang, collapsed in the last week of March after building up large leveraged positions in a concentrated portfolio of US and Chinese companies. At its peak, the family office had over $ 20 billion in capital and total wagers exceeding $ 100 billion.
Hwang was wiped out in just days after investments such as ViacomCBS and Discovery fell, triggering margin calls from global banks, who then sold the shares of the big blocks. The fiasco is expected to cost the financial industry around $ 10 billion, sparked an investigation by the U.S. Securities and Exchange Commission and made heads roll at Credit Suisse Group AG, where success exceeds $ 5 billion.
The 13F deposit provides one of the earliest examples of how a hedge fund attempted to capitalize on the distressed remains of Archegos. It also offers insight into Soros’ investment firm, led by Chief Investment Officer Dawn Fitzpatrick.
She told Bloomberg in March that she was prepared to jump on dislocations in the market, investing $ 4 billion during the pandemic-induced faint a year ago, including buying residential mortgages. at low price. Soros has returned nearly 30% in the 12 months to February and manages $ 27 billion in a range of strategies.
“When there is a dislocation, we are prepared to not only double but triple when the facts and circumstances support it,” Fitzpatrick, 51, said in an interview with “Front Row” on Bloomberg TV.
Soros also increased his bet on Amazon.com Inc. and homebuilder DR Horton Inc., which is now its second-largest public equity position.
The 13F, which fund managers overseeing more than $ 100 million of U.S. stocks must file quarterly, revealed that Soros held $ 4.5 billion of U.S. stocks, down $ 77 million from the previous quarter.
The biggest exit for the quarter was Palantir Technologies Inc. Soros sold 18.5 million shares valued at approximately $ 435 million. The company initially revealed that it had a stake in the controversial data mining firm controlled by Peter Thiel in November, but quickly released a statement saying the initial investment was made in 2012 and that it regrets the decision.