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‘They can do what they want’: Archegos and the $6tn world of the family office

The implosion of Bill Hwang’s investment firm has focused attention on a pool of capital almost twice the size of hedge funds

The super-rich face challenges that the rest of us do not have to consider: yacht maintenance, selecting the right fleet of private jets, finding boarding schools for their offspring. Thanks to their roughly $6tn in combined family wealth, they now have to worry about Bill Hwang too.

Hwang has shot from relative obscurity to become the key figure in global markets over the past two weeks, as the implosion of his Archegos investment house has hammered a handful of stocks and punched multibillion-dollar holes out of Credit Suisse and Nomura.

The incident exposes poor risk management among a clutch of supposedly canny investment banks, charmed into providing lavish leverage for supercharging speculative bets by the protégé of Tiger Management — one of most respected hedge funds of all time.

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