Assets Under Management AUM

Scaramucci’s SkyBridge faces massive exodus of investors from flagship fund amid market downturn

Anthony Scaramucci’s investment firm, SkyBridge Capital, is currently facing an exodus of investors amid the current market downturn.

According to a recent New York Times report, investors who held positions in SkyBridge’s flagship fund, SkyBridge Multi-Advisor Hedge Fund Portfolios, are clamoring to get their funds back.

SkyBridge Investors Demand Withdrawals

As of March 2022, the fund had over $2 billion in assets under management (AUM). However, the latest crypto market crash had a significant impact on its performance, causing it to lose almost a quarter of the value of its investments in the second quarter.

According to the report, investors are calling for the withdrawal of about half of the funds’ assets last month, which currently stand at $890 million. But a large number of SkyBridge investors will not be able to withdraw their money.

The report notes that the Multi-Adviser fund initially gave investors four windows to withdraw their assets each year. However, SkyBridge reduced them to twice a year in 2020, following the COVID pandemic-induced stock market crash. Notably, SkyBridge caps total withdrawals during each window.

In a letter sent to investors earlier this month, the company noted that its current buyout window has been oversubscribed; thus, they would collectively receive only 16% of the amount they claimed. SkyBridge added that it intended to pay investors before the end of October.

Meanwhile, a few days ago the company suspended withdrawals from one of its smaller funds, dubbed Legion Strategies, which has just over $200 million in AUM.

Scaramucci remains a strong supporter of crypto

Scaramucci said he remains a firm believer in the potential of blockchain technology and cryptocurrencies despite falling crypto prices. He revealed that around 22% of his flagship fund remained in crypto and related investments as of June 2022.

Still, the SkyBridge founder pointed out that he cannot accurately predict market movements. “I’m not smart enough to time the market. But we’ve done an awful lot of research, and we think anyone who’s done it will see that blockchain technology is good and represents the future,” he said.

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