Morgan Stanley sold part of Archegos Holdings before most of its rivals


Photographer: Michael Nagle / Bloomberg

Morgan Stanley sold $ 5 billion in shares owned by Archegos Capital Management a day before a flurry of block deals sent shockwaves through the capital markets.

The sale of the basket of shares on March 25 was completed at a fixed discount, according to a person with knowledge of the matter, who asked not to be identified when discussing private transactions.

The Wall Street bank sold shares held by Bill Hwang’s family office in about 10 companies after the market closed, mainly to hedge funds, the person said. CNBC reported early Tuesday on the size of the stock sale.

Morgan Stanley’s first offer for the exits helped the company emerge largely unscathed from a fund collapse that has caused billions in losses at other banks. Credit Suisse Group AG announced Tuesday a $ 4.7 billion of write-off tied to its exposure to Archegos, and Nomura Holdings Inc. has said it could take a hit of up to $ 2 billion.

Morgan Stanley was one of the first sponsors of the Family Office despite the legal blemish linked to Hwang. He was charged with insider trading by authorities and in 2012 pleaded guilty to wire fraud on behalf of his hedge fund, Tiger Asia Management.

A Morgan Stanley spokesperson declined to comment.

Read more: Credit Suisse The offer for Archegos Fix ends with the fight of the banks

– With the assistance of Sridhar Natarajan

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