WASHINGTON—Securities regulators are investigating trading at Archegos Capital Management, the fund that made highly leveraged bets on stocks and then collapsed last week, according to people familiar with the matter.
The Securities and Exchange Commission has opened a preliminary investigation into the matter, the people said, which may not produce any formal allegations of wrongdoing. Banks sold big blocks of shares late last week linked to Archegos, which manages the family money of investor Bill Hwang.
It couldn’t immediately be learned what information the regulator has sought from Archegos. An SEC spokeswoman declined to comment. Representatives for Archegos couldn’t immediately be reached for comment.
The SEC inquiry was first reported by Bloomberg News.
The SEC routinely opens preliminary investigations after episodes of market turbulence linked to a particular participant’s trading. The agency typically converts those preliminary inquiries into formal investigations if the SEC staff suspects wrongdoing or thinks the conduct affects the fairness or liquidity of markets.