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Bloomberg

God and man clash in Bill Fan’s duel on Wall Street

(Bloomberg)-Visitors to the Secret Investment Empire bowed to prayer meditation as the sun rose outside the conference room in Midtown Manhattan. It was another Friday morning at 7am, and the familiar scene was once again unfolding inside. Archegos Capital Management is an obscure family office that shakes the financial world. In the days before the pandemic, 20 or 30 people squeezed together around a long table and listened to coffee and Bible recordings in Danish. According to those who were there, the Old Testament, perhaps Isaiah or Lamentations, may come first. Then came the new Gospel. It called on listeners drawn from a path known for their earthly desires rather than their pious faith: Wall Street. It was the host Bill Fan who stepped back into the background after pressing the play button. A mysterious millionaire trader at the heart of the biggest Wall Street blunder in history-a story so far-a tremendous stealth-made fortune was swept away by the masses in a blink of an eye-has sent a shockwave in the world Some of the most powerful banks. Estimates of the potential size of his position before the implosion soared towards $ 100 billion. The Securities and Exchange Commission is investigating clenching disasters in trading rooms around the world, but these accounts are only part of the story. Interviews with people in a circle of fans, Wall Street players near him, and documents related to his multi-million dollar charitable foundation fill in previously unreported pieces of the puzzle. .. In a sense, there are two Bill fans instead of one. One of the Christian capitalists listens to Bible recordings and walks for hours in New York’s Central Park, embracing a new vision of the 21st century. He is a modern Christian capitalist, an economic speculator of Christ, making money in the name of God and using it to promote faith. A generous benefactor to the unattractive, almost conservative range of Christian causes, this fan avoids the luxury wealth traps, takes buses, makes commercial flights, and by millionaire standards, New Jersey. I live in a humble environment in the suburbs. Bill Fan: Former Acolite of Hedge Fund Legend Julian Robertson, Risk-Thirsty and Angry in Unstable Markets-When Running Hedge Funds That Seem to Focus on Asia In addition, a bold trader who lost a bold bet on German car maker Volkswagen AG, who was also a Bill fan and one of Robertson’s most successful graduates of Tiger Management. It masked his dangerous leveraged bets from the public through financial derivatives and was once accused of insider trading and charged with wire fraud on behalf of his hedge fund Tiger Asia Management in 2012. I admitted. A supporter of Cathie Wood at Ark Investments, one of Wall Street’s most popular and recent hands. Like fans, Wood is known for holding Bible study groups and understanding what is called the “Faith in Finance” movement. And here, Bill fans finally collide. The wealth he had accumulated under the nose of major banks and financial regulators was much larger and more risky than most people thought-and these wealth were drawn at an alarming rate. In fact, it was probably one of the largest personal wealth accumulations in the history of modern finance. And the fans lost it even faster. BreakneckSpeedArchegos-Often translated as “author” or “captain” in Greek, it is often considered. Reference to Jesus-Many traders doing business with the company believed they were sitting on $ 10 billion in assets. According to those who did business with Arquegos, this figure, which represents the personal property of the fans, was actually close to $ 20 billion. Putting that number into the context, Bill Fan, a name I’ve never heard of on Wall Street, was even more valuable. Famous industry figures such as Ray Dalio, Steve Cohen and David Tepper. Even more remarkable is the speed at which fan wealth has grown rapidly. Archegos started in 2013 with an estimated $ 200 million. That’s a fair fortune, far from a fortune in hedge fund games, but within 10 years, fans’ fortunes have grown 100-fold, and traders and bankers now estimate. These were as fans began to adopt more and more leverage to goose returns, and as a bank, enthusiastically obliged to expand his credibility, enthusiastically for his lucrative trading business. Much of the wealth has occurred in the last 12-24 months alone. Fan success made him close to fans to donate to his own charity, the Grace & Mercy Foundation, which had assets of about $ 500 million as of 2018, according to a recent tax return. One institution and the beneficiary of his Foundation is King’s College. A small Christian school in the heart of New York’s financial district. In a statement to Bloomberg, the university thanked him for his generosity and said, “Our prayers are with Mr. Fan and his staff.” McDonald’s work The story of both Bill fans begins in South Korea, where he was born in 1964 as Sung Kook Hwang. The stories he tells his friends and associates are familiar to immigrant efforts. This is followed by financial success that is barely understandable on Wall Street. The fans grew up in religiou. s households (his parents were Christians, like about one-third of Koreans). When he was a teenager, his family moved to Las Vegas, where his father got a ministerial job at a local church. Fans told friends that he arrived in the United States without being able to speak or write in English and learned the language only while working at McDonald’s at night. Shortly thereafter, his father died and his mother moved his family to Los Angeles. Fans studied economics at the University of California, Los Angeles and earned an MBA from Carnegie Mellon University in Pittsburgh. Finance beckoned, but the fans turned out to be very good. He caught the eye of Julian Robertson while being a low-priced salesman for Hyundai Securities, which is part of the vast Korean chaebol Hyundai Group. Fans not yet 33 years old were handed a golden ticket to Wall Street: an offer to join Robertson’s Tiger Management, and at the top of the game fans soon by introducing Robertson to the Korean market. He made himself stand out-the teeth of the Asian financial crisis at the time-and a colleague of the Hamptons Ranch Tiger, who mastered what turned into a lucrative interest at SK Telecom, fans were one of Robertson’s most successful disciples. Say Yes-A quiet, systematic analyst and focused. Even today, he keeps his desk tidy and tidy, which helps him focus more. Robertson recalled these people and called him “Michael Jordan for Asian Investment.” Robertson, now 88, considers his fans to be friends, and the two had lunch together at the Hamptons a few months ago. Robertson told Bloomberg after news of the defeat of Arquegos was reported. Fans will eventually attack on their own as the so-called Tiger Cub. Initially, fans turned off the lights, returned 40% annually until 2007, and managed $ 8 billion. Hot Streak did not continue. In late 2008, his Tiger Asia suffered a stinging loss on a big bet against Volkswagen. Many other hedge funds have also shorted German car makers, and all hell was released when Porsche Automobile Holding SE suddenly announced that it would raise its stake. VW soared 348% within 48 hours, crushing fan-like shorts. Tiger Asia ended the year with a 23% drop. Many investors were angry that hedge funds, which should have been focused on Asia, were somehow caught up in massive pressure and withdrew money. GameStopFrenzy It was a painful and informative lesson for fans, people who know him say. In the future, he will seek out the stocks that many traders were missing and will go long instead. This year, millions of amateur investors have adopted that approach in the social media fraud over GameStop and other equities, but Tiger Asia faces even more problems before its next success. Did-this time it’s a big enough issue to bring fan days as a hedge When Tiger Asia pleaded guilty to wire fraud in 2012, the SEC traded shares in two Chinese banks. He said he used inside information to do so. Fan and his company have to pay $ 60 million to settle criminal and civil proceedings. The SEC banned him from controlling foreign currency, and Hong Kong authorities banned him from trading there for four years (the ban ended in 2018). Locked out of hedge funds, fans have opened a family office, Arquegos. The company, which recently hired about 50 people, initially occupied the space of the New York Times headquarters designed by Renzo Piano. Today, it is based further upstream by Columbus Circle and shares its address with the Grace & Mercy Foundation. “My journey really started about five or six years ago when we had a lot of problems with our business,” fans said in a 2017 video. “And I knew one thing that this was a situation where money and connections were really useless. But for some reason I remembered that I had to go to the word of God.” Bank The belief is that fans will rebuild his financial empire at a dizzying pace, as he lends him billions of dollars and ratchets his bets that were brilliantly unleashed when the financial company panicked. I helped. What happened after that was one of the biggest margin claims in history, driving his huge portfolio to liquidation. JP Morgan Chase & Co. Banks can lose as much as $ 10 billion in total, according to analysts at. Leveraged Blowout: How Fan Arquegos Blinded Global Bank His Christian buddies try to mobilize evangelical leaders, just as the injured Wall Street points their collective fingers at fans. Doug Birdsall, Honorary Co-Chair of the Lausanne Movement, a global group, said fans always like to think big. When he met him to discuss a new 30-story building in New York for the American Bible Society, fans said: It will be built at a height of 66 stories. There are 66 books in the Bible. A year ago, fans petitioned the SEC to get him to work and run a broker-dealer. The SEC has agreed. It is impossible to say where the fierce financial speculator Bill Fan ends and where the Christian evangelist and philanthropist Bill Fan begins. Those who know him say that one is inseparable from the other. Despite conflicts with regulators, tremendous trading losses, and doubts about his market transactions, fans often connect God and Mammon, bringing Christian teachings to the money-centric world of Wall Street. They say they are talking about. You’ll never think this guy is worth the money like him, “said John Bye, chief financial officer who has known fans for 30 years. “Maybe it’s a spectacular disappearance of wealth, but he has a god on his side. I’m not worried about Bill. For articles like this, visit bloomberg.com. Subscribe now to get the most trusted business news sources. © 2021 Bloomberg LP

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