ViacomCBS (VIACA) - Get ViacomCBS Inc. Class A Report, Baidu (BIDU) - Get Baidu Inc. 百度 Report and Tencent Music Entertainment (TME) - Get Tencent Music Entertainment Group American Depositary Shares each representing two Class A 腾讯音乐娱乐集团 Report shares were all on the rise Monday after billionaire George Soros’ investment firm said it snapped up shares of the companies as well as Discovery (DISCA) - Get Warner Bros Discovery Inc Com Ser A Report as they were being sold off during the collapse of Bill Hwang’s Archegos Capital Management.
Soros Fund Management bought $194 million of ViacomCBS, Baidu stock valued at $77 million, $46 million of Vipshop Holdings (VIPS) - Get Vipshop Holdings Limited American Depositary Shares each representing two 唯品会 Report and $34 million of Tencent Music Entertainment during the first quarter, according to a 13-F regulatory filing.
Archegos, the family office of former family office investment manager Hwang, fell apart during the last week of March after amassing large leveraged positions in a concentrated portfolio of U.S. and Chinese companies. At its peak, the family office had more than $20 billion of capital and total bets exceeding $100 billion.
Hwang was wiped out in just days after investments including ViacomCBS and Discovery tumbled, triggering margin calls from global banks, who then sold the stocks in big block trades.
The implosion is expected to cost the finance industry about $10 billion in write-offs, half of which occurred at Credit Suisse (CS) - Get Credit Suisse Group American Depositary Shares Report. It also has prompted an investigation by the U.S. Securities and Exchange Commission.
The 13-F filing provides one of the first examples of how a hedge fund attempted to capitalize on the distressed remains of Archegos. It also offers an insight into Soros’ investment firm, which is run by Chief Investment Officer Dawn Fitzpatrick.
Soros returned almost 30% in the 12 months through February. The fund manages $27 billion across a range of strategies.
At last check, shares of ViacomCBS were up 3.04% at $45.37, while shares of Baidu were up 2.91% at $191.62. Discovery shares were up 6.9% at $38.90 following its announced $43 billion merger deal with AT&T (T) - Get AT&T Inc. Report's WarnerMedia unit.