Did “The Mooch” lose his mojo?
Famous for his 11-day mission as Communications Director for former President Donald Trump, Anthony Scaramucci faces a mass outflow of investors from his money.
Bloomberg was announced earlier this week by Scaramucci’s company, SkyBridge Capital. Had stopped withdrawing from one of its small funds, Legion Strategies includes over $ 200 million. However, Scaramucci is also struggling to retain investors in Skybridge’s flagship fund, the Skybridge Multi-Advisor Hedge Fund Portfolio, which managed $ 2 billion at the end of March. That his investment lost almost a quarter of its value in the second quarter.
Investors in SkyBridge’s flagship fund aim to withdraw as much as $ 890 million. Or about half of what he had at the end of last month, Scaramucci told the DealBook newsletter... However, many of those investors will get stuck in the fund for some time.
Under that rule, investors in multi-advisor funds are only allowed to withdraw money during certain periods of time. Previously it occurred four times a year, but after a big loss at the start of the pandemic, SkyBridge reduced it to twice a year in 2020. Overall redemption is usually limited in each window.
Earlier this month, SkyBridge wrote to clients that the redemption period was “oversubscribed” and that they would only receive about 16% of the amount requested. The letter said it had issued an investor note about the amount to be paid by October.
Scaramucci’s loss occurs just over a year after SkyBridge moved to cryptocurrencies. SkyBridge’s flagship fund, purchased by Scaramucci from Citigroup, has long specialized in buying and selling shares in other hedge funds. For some time, it has made him one of the most powerful players in the hedge fund industry, along with his strong achievements in the years following the 2008 financial crisis.
In addition to the fund, Skybridge held a widely attended annual conference in Las Vegas called SALT, attracting celebrities from both Wall Street and politics.
Scaramucci said he still believes in cryptocurrencies in the long run, adding that as of the end of last month, about 22% of his flagship funds remained in cryptocurrencies and related investments.
“I’m not smart enough to time the market,” he told the DealBook newsletter. “But we’ve done a huge amount of research. I think anyone knows that blockchain technology is good and the future.”
