News of hedge fund collapse but stocks unaffected so far today

On Friday a massive round of block sell trades hit the US market, triggered, it turned out, by hedge fund Archegos Capital which was forced to sell $20bn of equites to meet margin calls.

News of hedge fund collapse but stocks unaffected so far today

Share on facebook
Share on twitter
Share on linkedin

On Friday a massive round of block sell trades hit the US market, triggered, it turned out, by hedge fund Archegos Capital which was forced to sell $20bn of equites to meet margin calls. The sales included huge positions in US media companies ViacomCBS and Discovery which both saw heavy losses on Friday. Investors will be monitoring developments at the US market opens later.

Market sentiment in the UK could get a lift today as lockdown restrictions are eased although the situation in Europe, especially France, seems to be getting worse.

On Wednesday, US President Joe Biden is expected to reveal his new plans for further stimulus measures which could include two new packages with a combined cost of $3 trillion.

Markets are expecting increased volatility in this shortened trading week as institutional investors rebalance their portfolios at quarter-end. These could be significant in light of recent moves in bond yields.

Disclaimer:  ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy. This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’

Download Our Free Brochure