SkyBridge Capital, Anthony Scaramucci’s investment company, is currently experiencing a exodus from investors due to the current market downturn.
According to The New York Times, investors who held positions in SkyBridge’s flagship fund, SkyBridge Multi-Adviser Hedge Fund portfolios, are trying to get their money back.
SkyBridge Investors Demand Withdrawals
The fund had more than $2B in assets under management (AUM) as of March 2022. The fund’s performance was severely affected by the recent crypto market crash, which caused it to lose almost a quarter its investment value in Q2.
According to the report, about half the assets in the funds are being demanded by investors to be withdrawn. This is currently $890 million. SkyBridge investors won’t be able to withdraw their money.
According to the report, investors were initially allowed four withdrawal windows each year by Multi-Adviser funds. SkyBridge decreased them to two per year in 2020 after the COVID pandemic. SkyBridge caps withdrawals in each window.
The firm sent an earlier month letter to investors stating that the current redemption window was oversubscribed and they would receive only 16% of what they requested. SkyBridge stated that it will pay investors by the end of October.
The company stopped withdrawing from Legion Strategies, one of its smaller funds that has just over $200 million in AUM, a few days earlier.
Scaramucci is a firm believer in crypto
Scaramucci stated that he believes in blockchain technology and cryptocurrency despite the crash of crypto prices. Scaramucci revealed that 22% of his flagship fund was still invested in crypto and related investments, as of June 2022.
SkyBridge founder, however, pointed out that it is impossible to accurately predict market movements. “I’m not smart enough to predict the market. He said that he has done extensive research and believes anyone who has will be able to see that blockchain technology can be a good option and the future.
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