Citigroup Cutting Ties With Anthony Scaramucci's Hedge Fund of Funds

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 [e-mail]

(END) Dow Jones Newswires

April 18, 2020 22:27 ET (02:27 GMT)

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