As crypto tumbles, Anthony Scaramucci struggles to retain investors.

Has ‘The Mooch’ lost his mojo?

Anthony Scaramucci, best known for his 11-day stint as former President Donald Trump’s communications director, is facing a mass exodus of investors from his funds.

Bloomberg reported earlier this week that Mr. Scaramucci’s firm, SkyBridge Capital, had suspended withdrawals from one of his smaller funds, Legion Strategies, which contains $200 million. But Mr. Scaramucci is also struggling to retain investors in SkyBridge’s flagship fund, SkyBridge Multi-Adviser Hedge Fund Portfolios, which hit $2 billion in late March. His investments lost nearly a quarter of their value in the second quarter.

Investors in SkyBridge’s flagship fund are trying to withdraw $890 million. Or about half the amount he had at the end of last month, Mr. Scaramucci told the DealBook newsletter. But many of these investors will be stuck with the fund for some time.

According to its rules, Multi-Adviser fund investors are allowed to withdraw money only during certain windows. They used to happen four times a year, but SkyBridge has reduced them to twice a year in 2020 after heavy losses at the start of the pandemic. Total redemptions are usually limited during each window.

Earlier this month, SkyBridge told its customers in a letter that its redemption window was “oversubscribed” and that they would collectively receive only 16 percent of the money they requested. The letter said it would issue investor notes for the amount that would be paid no later than October.

Mr. Scaramucci’s loss comes just over a year after SkyBridge turned crypto into crypto. SkyBridge’s flagship fund, which Mr. Scaramucci acquired from Citigroup, has long specialized in buying and selling shares of other hedge funds. For a time, this, combined with strong performance in the years following the 2008 financial crisis, made it one of the strongest players in the hedge fund industry.

In addition to the fund, SkyBridge held an annual conference in Las Vegas called SALT, which attracted big names from both Wall Street and politics.

Mr. Scaramucci says he is still a long believer in crypto, adding that about 22 percent of his flagship fund remained in crypto and related investments as of the end of last month.

“I’m not smart enough to time the market,” he told the DealBook newsletter. “But we’ve done a huge amount of research and we think anyone who does that will see that blockchain technology is good and is the future.”

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