Anthony Scaramucci denies he’s suing hedge funds over losses
Anthony Scaramucci is not in the mood to sue anybody right now.
Reports surfaced on Monday that his Skybridge Capital’s flagship fund suffered a 22.5 percent loss last month as markets cratered, and that Scaramucci was considering filing lawsuits against other funds responsible for his losses.
The COVID-19-driven carnage left the flagship fund with $3.9 billion in assets at the end of March, according to a source close to the fund.
But Scaramucci — most famous for his bumpy, 10-day stint as President Trump’s communications director in the White House — told The Post that he is not in a litigious mood.
“I haven’t been in one lawsuit in 31 years,” Scaramucci, also known as The Mooch, wrote in an email. “I don’t intend to have any now.”
Neither Scaramucci nor sources close to Skybridge, however, disputed that the fund-of-funds suffered heavy losses as the coronavirus pounded the hedge fund sector, especially in credit markets, where Skybridge is heavily invested.
Scaramucci, the flashy and outspoken entrepreneur who for years has organized the SALT hedge fund conference in Las Vegas, was one of the first financiers to see the seriousness of COVID-19.
As The Post reported, Scaramucci told his 50 staffers to stay away from Skybridge’s 527 Madison Ave. headquarters on March 10, ten days before Governor Andrew Cuomo ordered the statewide lockdown.
But that hasn’t saved Scaramucci from financial pain, because Skybridge allocates its $9.3 billion assets to other funds, as opposed to investing client money directly.
According to the WSJ, Skybridge got hit hard on its investment in structured credit — securities made up of various debts like mortgages and business loans that provide some cash flow to investors when everyone is paying their bills. That strategy is not as smooth with the economy shuttered to prevent the spread of a once-a-century global pandemic.
Some of the funds that Skybridge invested in have even closed the gate to returning client money, a move that could provoke a lawsuit from fund-of-fund managers like Scaramucci, but insiders back up his claim that is not the case.
“It’s absolutely not true,” said one person close to Skybridge. “The only lawsuit he’s ever been in is his divorce. Why would he sue anyone right now?”
Aside from the procedural nightmare of starting a lawsuit with courts and legal offices mostly closed, hedge fund experts tell The Post that suing a fund for losing money when markets fell 30 percent in a matter of days would not be seen kindly by the industry.
“That would be a very bad look for The Mooch,” said one manager who allocates with other funds. “He’d have a hard time getting anyone to take his money after something like that.”
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