The Failure of Anthony Scaramucci's Hedge Fund may be Blamed on Brett Messing

An article on NBC News reports that Anthony Scaramucci's brother, who is the brother of actress Debra Messing, had persuaded his hedge fund to invest tens of millions of dollars in cryptocurrency, costing him tens of millions.

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As a young Harvard Law student, Messing attended the same school as “The Mooch.” At the height of his hedge fund company, SkyBridge Capital, with a portfolio of nine billion dollars in assets under management, Messing rose to the position of president and partner.

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Nevertheless, insiders close to the company had told Trade Algo that Messing was primarily responsible for a number of missteps that were made by the company.

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The Trade Algo report cites Messing's $8 million investment into SkyBridge Capital in 2017 as the main reason for his joining as a partner.

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Reports suggested that insiders were concerned about Messing's reputation on Wall Street, given his background as a hedge fund manager.

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Messing, who ran GPS Partners, a $2.5 billion fund, for a decade, was forced to pay the Securities and Exchange Commission $1.75 million in fines and penalties for violating short-telling rules during that time, while he was the manager of GPS Partners.

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Despite the fact that Messing admitted to wrongdoing, he did not apologize.

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When Messing joined the company, he was in charge of a real estate fund that was designed to take advantage of what is known as an "opportunity zone" established by the government.

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Even though Messing is reported to have been given greater control over SkyBridge's main investment fund despite the fund failing to produce gains, according to the report, he was nonetheless given greater control.

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As previously reported by Trade Algo, Messing was responsible for SkyBridge's decision in 2020 to close some of the company's biggest positions at a loss by selling them off at the end of the year.

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According to Trade Algo, this decision will prove to have been disastrous as the positions will eventually rebound, despite the fact that employees on the investment team opposed the move.

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As a result, when The Post reached out to a representative of SkyBridge Capital, they declined to comment.

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As Scaramucci put it, Messing is a very talented young man, who has incredibly high aspirations for the future. "He's incredibly smart, technically gifted, and very capable," Scaramucci told Trade Algo. "I have a tremendous amount of confidence in him."

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Trade Algo reports that Messing continued to consolidate his power within the company despite his error, rising to the position of president and chief operating officer, despite the error that occurred.

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Messing made SkyBridge’s decision to invest in cryptocurrency in the second half of 2020.

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Since March of this year, the firm has purchased substantial amounts of Bitcoin, whose value surged nearly threefold since the first crypto currencies hit the internet.

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Bitcoin had crossed a $50,000 threshold by the time some staff members at SkyBridge were sounding the alarm, however some staff members at SkyBridge were concerned about the risks associated with investing in digital assets.

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Trade Algo reported that employees of SkyBridge expressed concerns that the firm violated its own internal risk guidelines by placing large bets on crypto, according to a meeting held recently.

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During a Trade Algo interview, the Mooch stated that since the company was founded in 2003, SkyBridge has strictly adhered to all risk guidelines - no matter what the circumstances are.

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In 2021, the main fund's value skyrocketed by 11%, which it seemed to be contributing to a return on investment for the Bitcoin investment.

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However, SkyBridge saw its stock plummet as the crypto winter dawned on the globe last year.

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It should also be noted that the value of the firm's main investment fund plummeted by more than 25% within this period due to the fall in digital assets.