Anthony ‘the Mooch’ Scaramucci’s SkyBridge Capital has restricted client withdrawals from its crypto-focused hedge fund, even as the fund’s returns have soared, according to a report by Bloomberg citing a recent regulatory filing.
According to the filing, while investors holding around 70% of the fund’s shares requested their money back during the latest redemption period, which ended in March, the fund only repurchased about 7% of those shares.
While Scaramucci declined to comment on the situation, he has previously stated that the fund allows him to limit redemptions, and that he operates within the scope of the prospectus. SkyBridge began limiting withdrawals two years ago during the crypto winter, a period marked by significant losses and investor pullbacks.
Despite the restrictions, cryptocurrencies – and the fund’s returns – have rebounded significantly with bitcoin surging roughly 150% in the 12 months ending 31 March, and SkyBridge reporting a 46.4% gain.
According to an unnamed Bloomberg source familiar with the matter, Morgan Stanley’s private wealth clients, who account for about 70% of the fund’s $1.6bn, have been trying to exit for over a year.
Despite SkyBridge’s recent strong performance, including a 26% rise in the first quarter, it has not fully recovered previous losses. Over the five years ending 31 March, the fund’s annualised returns were less than 1%. The firm managed about $2bn as of year-end, a significant decline from its $9bn peak in 2015.
