Citigroup Cutting Ties With Anthony Scaramucci's Hedge Fund of Funds
April 18 2020 - 10:42PM
Dow Jones News
By Juliet Chung
Citigroup Inc.'s private bank decided to sever its relationship
with Anthony Scaramucci's SkyBridge Capital and expects to see
clients redeem $100 million over time, said a person familiar with
the matter.
Citigroup's decision earlier this week follows a more-than-20%
loss in March by SkyBridge's flagship fund because of a big credit
bet the fund made years ago. The fund managed $4.8 billion at the
end of February. The person said Citigroup thinks the fund has too
much exposure to credit and mortgage-related securities and expects
clients will follow its recommendation they redeem.
Citigroup declined to comment. Mr. Scaramucci said in a
statement many Citigroup clients remain invested. "We are keeping
an open mind, value our relationship with Citi and hope they will
revise their decision in time."
SkyBridge quadrupled its size when it bought Citigroup's fund of
hedge-funds business in 2010. The deal brought that business'
crisis-era track record to SkyBridge.
In March, the value of credit-related investments collapsed as
investors fled low-rated debt amid worries the coronavirus pandemic
would crush consumers and other borrowers. People familiar with
SkyBridge said its fund had rebounded somewhat in April.
Write to Juliet Chung at juliet.chung@wsj.com
(END) Dow Jones Newswires
April 18, 2020 22:27 ET (02:27 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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