Anthony Scaramucci
Anthony Scaramucci's Message Lost After Piñata Remark
Anthony Scaramucci, head of SkyBridge Capital, gained a lot of attention last month when he asked President Obama, "...when are we going to stop whacking at the Wall Street pinata?" Scaramucci recently told DealBook that instead of getting mocked by Jon Stewart and others, he hoped the appearance would be a platform to show, "I am willing to use the media to explain to people the industry so that they would gain more comfort investing in it, as well as in SkyBridge."
Mr. Scaramucci, 46, has been a regular on CNBC’s “Fast Money” program for years, but he has stepped up his media appearances in the past few months as he markets his newest investment vehicle, a fund of hedge funds that his firm acquired from Citigroup this year.
A fund of funds enables investors to diversify their holdings by allocating their capital to multiple hedge funds.
“When you hear the words ‘hedge fund,’ the next word you hear is ‘pariah’ — we are a social outcast,” Mr. Scaramucci told DealBook. “My vision is to bring hedge funds to the masses so that we will no longer be looked at like a pariah.”
But to invest in a fund of fund, an investor normally needs to be “accredited” by the government, meaning that they need to earn at least $200,000 a year and have a net worth of at least $1 million. Furthermore, to get into most funds of funds, an investor had to put up a lot of money — usually $1 million or more. It is an expensive way to pay for diversification, as investors normally pay a fund of fund 1 percent of the assets they put into that hedge fund and a performance fee of 10 percent — on top of a multitude of other fees. Source
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