Broker-Dealers May Have Not Fully Apprised Hedge Fund Investors of the Risks
According to Bloomberg, sources report that on July 18, 2022, Legion Strategies suspended investor redemptions. The hedge fund is managed by Anthony Scaramucci’s Skybridge Capital.
Scaramucci was a communications director for former US President Trump for eleven days in July 2017. His Skybridge Capital is an SEC-registered investment adviser and asset manager that, as of the end of June 2022, was overseeing about $2.5B, including more than $800M in digital assets.
Legion Strategies is registered in the Cayman Islands. With about $230M in assets under management, the current minimum investment that can be made in the hedge fund is $50K. The suspension in redemptions comes following a steep decline in cryptocurrencies and stocks. The hedge fund’s exposure to digital assets, 10% of which is in crypto, comes from other funds that Skybridge manages, including vehicles with a concentration in Bitcoin, Algorand, and Ethereum.
The Bloomberg article also references the same sources claiming the redemptions occurred because private companies, which are harder to sell, now make up 20% of Legion’s portfolio.
What Should You Do If You Are a Legion Strategies Investor?
Although a representative for Skybridge is presently claiming there is zero risk of asset liquidation for Legion Strategies, our hedge fund investment attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) have spoken with Legion investors who are concerned about what these suspensions might mean for them. Some are wondering whether the fund was improperly managed.
Unfortunately, many brokerage firms will recommend hedge funds to customers without fully knowing and/or apprising them of the risks. Not only that, but hedge funds like Legion Strategies are not suitable for every investor, and involvement in cryptocurrencies, which are purely regulated, can generally be a risky proposition. Not only have cryptocurrency prices proven to be unstable and easily impacted by market volatility, but also invlegion-strategies-suspended-for-skybridge-redemptionestors may end up losing their entire investment.
Legion Strategies Investor Recovery and Losses
If you invested in Legion Strategies and would like to determine whether you have grounds for pursuing a claim for damages against your broker-dealer that may have unsuitably marketed this hedge fund to you and/or failed to apprise you of the risks fully, contact highly experienced investment lawyers and stock loss attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today at (800) 259-9010.