Anthony Scaramucci’s Skybridge Capital Reportedly Halts Investor Redemptions

According to Bloomberg, Legion Strategies, an affiliate of Anthony Scaramuccis hedge fund Skybridge Capital, has stopped all investors' redemptions.

This decision comes after the significant drop in stocks and cryptocurrencies seen over the course of this past month, with Bloomberg being told the move came due to the famously hard-to-sell, stocks in private companies, which makes up 20% of the fund's portfolio.

Legion Strategies had exposure to cryptocurrencies such as Bitcoin, Ethereum, and Algorand, through other funds managed by Skybridge.

Legion held around $230 million in assets under management (AUM), and as of February 28th, 25% is reportedly held in crypto. With another 10% being held in digital assets, according to Bloomberg.

"Alongside an independent board, SkyBridge temporarily suspended redemptions in its offshore fund, Legion Strategies, on Monday, July 18. The suspension is driven largely by a liquidity mismatch resulting from late-stage private investments in the fund. SkyBridge funds do not have leverage. There is zero risk of any asset liquidation," a Skybridge representative said while speaking to Decrypt. "The gate is a collective protection for our investors. The suspension will be in place until SkyBridge can ensure the fund is not forced to exit positions to the detriment of investors who want to stay in, while allowing an orderly exit for those who want one. The decision has been well-received by the majority of the fund’s investors."

Anthony Scaramucci, who infamously had a stint at the White House as a Director of Communications back in 2017, has become a big figure within crypto, due to his staunch support.

Skybridge Capital has pushed for a spot Bitcoin ETF, as many others have, but has found the same result as their peers, as it has seen its application denied by the SEC in January of this year.

The firm holds roughly $3.5 billion in assets, a number reported back in April, with more than half of it being tied to digital assets. The firm is said to become "a leading cryptocurrency asset manager and adviser," with Scaramucci saying at the time that "cryptocurrency markets represent tremendous growth."

"It comes with volatility, certainly, but I think over three to five years, we like that trajectory," Scaramucci told Bloomberg.