Giant block trades that precipitated promoting raises questions on trigger By Reuters
© Reuters. FILE PHOTO: The Goldman Sachs company logo resides in the corporate area on the floor of the NYSE in New York
(Reuters) – A series of large block trades on Friday that investors said led to sharp falls in prices for a number of companies sparked speculation about what was behind them. Goldman Sachs (NYSE 🙂 is said to be a bank that has an interest in the bank’s turnover. ViacomCBS (NASDAQ 🙂 and Discovery (NASDAQ 🙂 stocks both fell 27% on Friday, while US-listed Baidu and China-based Tencent Music fell 33% over the course of the week, down 33 from Tuesday , 5% and 48.5% fell closing levels, respectively.
Investors and analysts said on Friday that large blocks of shares were launched by both Viacom and Discovery companies on Friday. They called them massive volumes, which would likely exacerbate the decline. Viacom was also downgraded from on Friday Wells Fargo (NYSE :).
A source familiar with the matter said Saturday that Goldman Sachs Group Inc was involved in the big block deals. Bloomberg and the Financial Times reported Saturday that Goldman liquidated more than $ 10 billion worth of shares in the block trade. The Financial Times reported that Goldman advised counterparties that the sales were “forced downs”, citing people with knowledge of the matter.
CNBC reported to https://www.cnbc.com/2021/03/27/archegos-capital-forced-position-liquidation-contributes-to-viacom-discovery-plunge.html that the selling pressure was due to the liquidation of positions by be Family Office Archegos Capital Management, citing a source with direct knowledge of the situation.
One person at Archegos who answered the phone declined to comment. Archegos was founded by Bill Hwang who founded and ran Tiger Asia according to a site survey https://web.archive.org/web/20210124211426/https://www.archegoscapital.com/management of the fund’s website. Tiger Asia was a Hong Kong-based fund fund https://www.reuters.com/article/togerasia-hedgefund/update-1-hedge-fund-tiger-asia-to-return-investor-money-idUKL4E8JE2XP20120814 looking to make a profit on betting on stocks in Asia.
In an email to customers of Bloomberg News https://bloom.bg/3lYOrZm, Goldman said Goldman had 6.6 shares worth of shares in Baidu Inc (NASDAQ :), TencentMusic Entertainment Group and Vipshop (NYSE 🙂 Holdings Ltd Billion dollars sold before the US market opened on Friday, the Bloomberg report said on Saturday.
Goldman then reportedly sold shares in ViacomCBS Inc, Discovery Inc, Farfetch (NYSE 🙂 Ltd, iQIYI Inc, and GSX Techedu (NYSE 🙂 Inc valued at $ 3.9 billion.
The Financial Times reported on it Morgan Stanley (NYSE 🙂 sold $ 4 billion worth of shares earlier in the day, followed by another $ 4 billion in the afternoon.
Morgan Stanley and Goldman Sachs declined to comment.
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