According to Bloomberg, Legion Strategies, affiliated with Skybridge Capital, has frozen withdrawals from its investors.
“Our board made a decision to temporarily suspend until we can raise capital inside the fund and then make sure when people get out they get out orderly,” says @scaramucci. “About 18% of the fund is in what we would call #crypto exposure.” pic.twitter.com/j5AxY871n7
— Squawk Box (@SquawkCNBC) July 19, 2022
The hedge fund is linked to the famous investment company created and managed by Anthony Scaramucci, one of the biggest enthusiasts of the cryptocurrency industry today.
Through other funds linked to Skybridge Capital, Legion Strategies offered exposure to cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Algorand (ALGO).
Despite depositing around 25% of the capital under management in these assets, it was not the sharp drops in the price of cryptocurrencies that made the fund suspend its withdrawals. Still, the bear market has been seen in the stock market.
Private company shares are most difficult to sell, and as they represent about 20% of the fund’s portfolio, they would create liquidity problems.
The spokesperson also assures that the decision did not shake and was well received by most of the fund’s investors and that the suspension of withdrawals “will be in effect until SkyBridge can ensure that the fund is not forced out of positions to the detriment of the investors.
Scaramucci is a well-known figure on both the US economic and political scene. The manager came to work as White House Communications Director during the Trump administration in 2017.
Despite the current winter, Scaramucci remains confident in the long-term success of this industry, giving tips on how investors should behave at times like those seen in recent weeks.
