Archegos Capital Management

Or you're short a lot of... you know, and then they go up, you lose money.

The prime brokerage business is similarly a business where you earn like steady fees by charging interest, but a business where if the stuff you're financing goes down, then, you know, you send out a margin call, and it's fine, right? But if it goes down more, then you lose a lot of money, all right? So there are certainly cases of, you know, Archegos is the big one recently, but there are others of like prime brokerage-

Recently

... people just-- Ah, it's not that...

[phone rings] This is Brian.

Hey, Brian, it's, uh, Scott from Archegos.

How are you?

Hey, Scott.

A quick shout-out to Ticker for sponsoring the video.

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Monday, the 22nd of March, 2021 was a typical trading day for Archegos Capital Management.

When markets closed, the fund had about $36 billion in net assets, which had grown nearly fivefold since the start of the year.

They can go off at a moment's notice, right? And I don't have to paint you a particular picture on this, but we've gone through this.

We've watched Archegos Capital.

We've watched Credit Suisse.

We've watched Silicon Valley Bank.

He admitted to insider trading in 2012, was banned for four years for trading in Hong Kong, yada, yada, yada.

Fast-forward to 2021, and he's running a new fund called Archegos Capital Management.

Archegos in Greek means prince, I, I think, and he was certainly the prince of something.

He was the prince of making some of the dumbest leverage trades I've ever seen, like it was a challenge to lose as much money as possible as quickly as possible.