Skybridge Redeems $1B from Event-Driven Strategies

Feb 26 2016 | 9:03pm ET

SkyBridge Capital, the hedge fund investor founded by Anthony Scaramucci, reportedly redeemed around $1 billion from event-driven strategies at Paulson & Co, Third Point and JANA Partners in the final quarter of 2015.

The move, which was disclosed in a regulatory filing, was a shift away from volatile stock markets, according to a Bloomberg article, and part of Skybridge's "dynamic strategy" to lower risk in the current environment.

The redeemed capital was placed with funds that focus on income generation, such as CMBS and structured credit funds, noted Bloomberg citing an unidentified person familiar with the matter. The person also said Skybridge was concerned equity market volatility was rising and event-driven managers are typically heavily exposed to stocks.

Event-driven funds, which bet on corporate events such as mergers, bankruptcies, and spinoffs, are often activist in nature and have been a favorite of Scaramucci’s for several years ahead of U.S. monetary policy normalization. 

As of September 2015, Paulson, Third Point and JANA accounted for one-quarter of Skybridge’s $7.1 billion Multi-Adviser Hedge Fund Portfolio, according to the article, with the remainder spread across approximately forty other managers. As a result of the withdrawals, however, this share has slid to 12 percent as of year-end.

Also disclosed in the filing was SkyBridge’s decision to trim the amount invested with Nelson Pelz’s activist fund Trian Partners from $404 million at the start of the fourth quarter to $272 million at the end of the year. 

"We still have meaningful amounts of money with most of these managers,” said Scaramucci to Bloomberg in the article. “Frankly, we expect to have money with all of them in the next market cycle. We have an enormous amount of respect for these managers.”

Founded in 2005 by Scaramucci, SkyBridge is a global alternative investment firm that specializes in funds of hedge funds products, custom separate account portfolios, hedge fund advisory services and a long-only mutual fund. Home to the well-known SALT Conference, the firm manages a total of $12.9 billion in assets. 

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