It probably wasn’t exactly the worst year of his life—there were, for instance, some Schadenfreudian highlights—but 2020 was not kind to Anthony Scaramucci. He arguably cost his own industry access to federal bailout money. He lost the backing of a key former partner. Coronavirus cancelled his big party. And that wasn’t the worst thing the global pandemic did to the Mooch and his SkyBridge Capital: It also lost them a lot of money. How much money?
SkyBridge Capital, the fund of hedge funds led by Anthony Scaramucci, has recorded its worst annual performance since 2008, losing about 7.5 per cent of its value while its peers posted positive returns in a strong year for bonds and equities alike…. SkyBridge experienced a net outflow of $1.4bn during the year, said a spokesperson for the investment manager. That and the performance decline had shrunk overall assets under management to approximately $7bn at year end.
But don’t worry too much about his Moochness: He’s got a plan to get right back on top.
SkyBridge, a fund of hedge funds, on Monday announced it had started the Skybridge Bitcoin Fund with $310 million in assets under management invested from its $3 billion flagship fund.
“Imagine every model portfolio where gold has become an accepted asset class, every model portfolio has a 1% exposure to bitcoin and you can see the magnitude of where bitcoin could be,” SkyBridge founder and managing partner Scaramucci told Reuters.
Pretty great idea, Mr. Fake-It-‘Til-You-Make-It! After all, bitcoin soared by more than $5,000 just over the weekend, and in proper Trumpian fashion, acting Comptroller of the Currency Brian Brooks is using The Final Days to give cryptos a bit of a regulatory boost. So how has the market reacted to the imprimatur of the shortest-lived White House communications chief ever?
Bitcoin slumped as low as $29,316 at around 5:40 a.m. ET Monday, falling 12% in the last 24 hours. It later went back above the $30,000 level, paring losses to trade at around $31,420, but was still down more than 6%.
Well, Tony, you can’t say you weren’t warned by, uh, yourself.
"This could be a blow up top bubble. We expect the fund to be volatile and it could lose money," Scaramucci said.
Hedge fund manager Scaramucci launches cryptocurrency fund [Reuters]
SkyBridge has worst year since 2008 after structured credit hit [FT]
Bitcoin Surges Into 2021, Rose Nearly 20% Over Weekend [WSJ]
OCC Regulator Implements Groundbreaking Cryptocurrency Guidance For Banks And The Future Of Payments [Forbes]
Bitcoin falls as record-breaking rally loses steam [CNBC]
Bitcoin’s bubble could burst, warns Anthony Scaramucci. But he’s still a mega-bull [Fox 40]