No Longer the Pinata, Anthony Scaramucci Wants Out of Hedge Fund Business?

Dec 20, 2016
J. Webster
Comments Off on No Longer the Pinata, Anthony Scaramucci Wants Out of Hedge Fund Business?

Just when Wall Street is in power once again, well, just when Wall Street is set to have even more power, Anthony Scaramucci has decided he wants out of the hedge fund business? Or, I should say the hedge fund of hedge funds business.

Scaramucci is a smart man, he’s hitched his ride to the winning candidate and now may be offered a position in the Trump administration, so there’s talk of him selling his fund, SkyBridge Capital. But you’d think now that Wall Street is the favored son, no longer being whacked like a pinata, he’d want to stay in the hedge fund business, right? I makes you wonder if that was really his favored business all along…

Anthony Scaramucci, a member of President-elect Donald Trump’s transition team, is exploring the sale of SkyBridge Capital as he seeks a post within the incoming administration, according to a person familiar with his thinking.

Scaramucci, who has weighed selling his firm in the past, is considering exiting now as he’s open to taking a government job, such as a role at the Council of Economic Advisers, said the person, who asked not to be named because the information is private. He’s also considering a bid for finance chairman of the Republican National Committee.

SkyBridge, which manages about $7.5 billion in assets, has been approached by private-equity firms, mid-to-large asset management companies and sovereign wealth funds, said the person. Scaramucci, SkyBridge’s biggest shareholder, has yet to decide whether the sale will be limited to his stake, the person said.

Full story at Bloomberg…

But perhaps Scaramucci is just being smart here again, selling his hedge fund at the top of the stock market. If the market is near the “top”. Who really knows, but we must be close to a “top”. And, maybe he’ll be able to reduce his taxes on the sale of his fund of hedge funds, like Rex Tillerson does when he joins the administration. Not sure if you can avoid taxes though when you sell your fund of hedge funds.

But it just seems like if you’re a trader or an investor or love Wall Street you’d want to stay in the game when the game turns even more in your favor. Ya know.

And yes, that is Steve Cohen in the picture above. Cohen is of course the owner of the former hedge fund S.A.C. Capital that paid out nearly $2 billion dollars to settle with the government for insider trading allegations. The government could never pin insider trading on Cohen directly, so they went after his firm.

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