Hwang’s Arrest Reveals Surprising Details on Spectacular Decline

Archegos Capital Management founder Bill Hwang was charged with fraud on Wednesday, connected with the implosion of his family office 13 months ago.

Some of the allegations by federal prosecutors were previously reported: using total-return swaps to keep Archegos’s positions in single stocks below 5% to avoid triggering required disclosures, misleading Wall Street banks about the composition of its portfolio and the specific stocks he wagered on. But the charging documents also contain new details, including just how large the family office became at its peak and its trading strategies amid its spectacular rise and fall.

Hwang and Chief Financial Officer Patrick Halligan were charged ...