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Warning of possible losses from hedge fund default

Nomura and Credit Suisse warned on Monday that they were facing big losses after a U.S. hedge fund, named by sources as Archegos Capital Management, defaulted on margin calls, putting investors on edge about who else had been caught out. According to the Financial Times reports Archegos had large exposures to ViacomCBS and several Chinese technology stocks. These stocks were hit hard as shares of the US media group fell last week.
According to sources the Losses at Archegos Capital, run by former Tiger Asia manager Bill Hwang, had triggered a fire sale of stocks on Friday.
Nomura said it faced a possible $2 billion loss due to transactions with a U.S. client while Credit Suisse said a default on margin calls by a U.S.-based fund could be “highly significant and material” to its first-quarter results.

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