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Rekenthaler Report

Three Takeaways From the Archegos Disaster

Drawing public lessons from a private fund's problems.


The New Titanic

In March, the hedge fund Archegos struck an iceberg. In just two days, the highly leveraged fund went from “business as usual” to total collapse. Performance rapidly degenerated; the fund was unable to meet margin calls; its bankers seized its collateral; the fund was out of business. Archegos lost everything.

John Rekenthaler does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.