Bill Hwang Acolyte Tao Li Draws Scrutiny After Loss on Big China Bet
The Archegos Capital boss and ex-colleague are said to have built GSX stakes equal to 40% of the stock — frustrating short sellers.
(This story was originally published on October 1, 2021. Today, Archegos founder Bill Hwang and CFO Patrick Halligan were arrested and charged with 11 criminal counts, including racketeering conspiracy and securities fraud. Federal prosecutors said Hwang coordinated with an old acolyte from another hedge fund. Bloomberg News reported the mystery fund manager identified only as “Adviser-1” in the indictment is Tao Li, the head of Teng Yue Partners in New York, according to people with knowledge of the investigation.)
They were two investing whales, well known to each other but invisible in the market except for the price moves in their wakes — sometimes as they snapped up the same stocks.