Anthony Scaramucci says ‘no fear of liquidation’ as Skybridge Capital suspends withdrawals in fund with crypto exposure

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Anthony Scaramucci, founder and managing partner of SkyBridge Capital, confirmed that the firm has temporarily suspended withdrawals in one of its funds, but said there is “no fear of any liquidation” as the fund is unlevered.

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About 18% of SkyBridge’s Legion Strategies fund, which manages about $250 million, is in crypto-related investments, including bitcoin BTCUSD,
+5.52%
and private investments in companies such as crypto exchange FTX, Scaramucci said in a Tuesday interview with CNBC’s Squawk Box.

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SkyBridge halted redemptions for the fund as stock and crypto prices plunged, with bitcoin trading down 67% from its all-time high. Smaller coins fell even more.

“We had to take into account a balance of different factors,” Scaramucci said in the CNBC interview. “We have some private investments there, and what you don’t want to do is to have to mix over the change due to near-term redemptions.”

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“So our board made this decision separately since then, until we can raise capital inside the fund and then make sure that when people get out, they get out orderly and we keep the funds portfolio composition more or less in sync, so as not to damage investors that want to stay in the funds,” Scaramucci said.

The fund is down 30% year-to-date, but is up 5% so far this month, according to Scaramucci. The firm will lift the suspension as “things start to get better,” he said.

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Credit: www.marketwatch.com /

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