Has “The Mooch” Lost Its Mojo?
Anthony Scaramucci, who is known for his 11-day stint as communications director for former President Donald Trump, is facing a massive exodus of investors from his funds.
Bloomberg reported earlier this week that Mr. Scaramucci’s firm of SkyBridge Capital had halted withdrawals from one of its smaller funds, Legion Strategies, which contains just over $200 million. But Mr. Scaramucci is also struggling to retain investors in SkyBridge’s flagship fund, the SkyBridge Multi-Adviser Hedge Fund Portfolios, which managed a staggering $2 billion at the end of March. The investments lost almost a quarter of their value in the second quarter.
Investors in SkyBridge’s flagship fund are looking to withdraw as much as $890 million, or about half the money it held at the end of last month, Mr. Scaramucci to the DealBook newsletter. But many of those investors will stay in the fund for a while.
According to the rules, investors in the Multi-Adviser fund are only allowed to withdraw money during certain periods. Those used to occur four times a year, but SkyBridge reduced them to twice a year in 2020, after major losses at the start of the pandemic. Total redemptions are typically capped during each window.
Earlier this month, SkyBridge told its customers in a letter that the repayment window was “oversubscribed” and that collectively they would only receive about 16 percent of the money requested. The letter said it issued investor notes for that amount to be paid no later than October.
The losses of Mr. Scaramucci come just over a year after SkyBridge turned to crypto. SkyBridge’s flagship fund, which Mr. Scaramucci bought from Citigroup, has long specialized in buying and selling interests of other hedge funds. That, along with strong performance in the years following the 2008 financial crisis, made him one of the most powerful players in the hedge fund industry for a time.
In addition to the fund, SkyBridge held a well-attended annual conference in Las Vegas called SALT, which drew big names from both Wall Street and politics.
Mr Scaramucci says he still believes in crypto for the long term, adding that about 22 percent of his flagship fund remained in crypto and related investments late last month.
“I’m not smart enough to time the market,” he told the DealBook newsletter. “But we’ve done a tremendous amount of research and we think anyone who has done that will see that blockchain technology is good and the future.”