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Sunday, June 13, 2021

He Built a $10 Billion Investment Firm. It Fell Apart in Days.

After Mr. Robertson closed the New York fund to outdoors traders in 2000, he helped seed Mr. Hwang’s personal hedge fund, Tiger Asia, which centered on Asian shares and shortly grew, at one level managing $3 billion for outdoor traders.

Mr. Hwang was recognized for swinging large. He made giant, concentrated bets on shares in South Korea, Japan, China and elsewhere, utilizing ample quantities of borrowed money — or leverage — that might each supercharge his returns or, in flip, wipe out his positions.

He was extra modest in his personal life. The home that he and his spouse, Becky, purchased in Tenafly N.J., an upscale suburb, is valued at about $3 million — humble by Wall Street requirements. A non secular man, Mr. Hwang established the Grace and Mercy Foundation, a New York-based nonprofit that sponsors Bible readings and non secular e book golf equipment, rising it to $500 million in belongings from $70 million in beneath a decade. The basis has donated tens of thousands and thousands of {dollars} to Christian organizations.

“He’s giving ridiculous amounts,” mentioned John Bai, a co-founder and managing associate of the fairness analysis agency Fundstrat Global Advisors, who has recognized Mr. Hwang for roughly three many years. “But he’s doing it in a very unassuming, humble, non-boastful way.”

But in his investing method, he embraced danger and his agency ran afoul of regulators. In 2008, Tiger Asia lost money when the funding financial institution Lehman Brothers filed for chapter on the peak of the monetary disaster. The subsequent year, Hong Kong regulators accused the fund of using confidential information it had obtained to commerce some Chinese shares.

In 2012, Mr. Hwang reached a civil settlement with U.S. securities regulators in a separate insider buying and selling investigation and was fined $44 million. That similar year, Tiger Asia pleaded responsible to federal insider-trading expenses in the identical investigation and returned money to its traders. Mr. Hwang was barred from managing public money for not less than 5 years. Regulators formally lifted the ban last year.

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