What is Archegos?
Archegos is a private investment firm, hedge fund, family firm call what you will.
It came in the news after it botched up spectacularly and went down in a cascade like a terrible April Fool joke gone wrong.
When these investment firms come undone, one hears of ridiculous figures of losses that are stunners for the lay men. It is like a competion among big losers to add one more zero to outdo the other in losses. How many zeroes in a billion? let us add one more to make it more... and more.
But wait, we have come to see that in the world of High Finance, the more you lose, the higher you are rated.
Apparently so was the case with the owners of Archegos, who had a history apparently of financial wrong doing.
Then how were such big names in the investment banking world like Credit Suisse and Nomura left holding those empty bags as the erstwhile Tiger slipped away? Well you go back to the theory - the bigger a loser you are, the more your ability to maipulate (apparently) and the higher you are rated for even the big bosses to look up to you!
Check out some of the interesting stories of Archegos' rise and fall here!
https://slate.com/business/2021/03/archegos-capital-management-dumbest-financial-story-2021.html
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