SkyBridge is a multi strategy alternative asset manager that focuses on hedge fund solutions, and opportunistic investments. Launched in 2005 by Anthony Scaramucci, SkyBridge acquired the hedge fund solutions business from CitiGroup in 2010. SkyBridge offers hedge fund solutions in a variety of investment vehicles including unlisted closed end funds, private funds, and separate accounts. In addition to hedge funds of funds, it also operates an opportunity zone REIT, and bitcoin funds. SkyBridge has already raised over $300 million in a private bitcoin fund, and is in the process of launching a Bitcoin ETF. Their hedge fund of funds products also have exposure to institutional bitcoin funds. They summarized their bitcoin investment thesis here.
Skybridge also sponsors the annual SALT conferences for hedge fund managers. These conferences are important annual events for the hedge fund industry. Its likely that SkyBridge’s sponsorship of SALT conferences helps it source hedge funds to invest in its portfolios.
According to its latest Form ADV, SkyBridge manages $4.1 billion in AUM on a discretionary basis, and an additional $3.3 billion on a non-discretionary basis. The largest portion of this AUM is in tender offer funds implementing a hedge fund of funds strategy. These tender offer funds include SkyBridge Multi Adviser Hedge Fund Portfolios and SkyBridge G II Fund LLC.
SkyBridge Multi Adviser Hedge Fund Portfolios
SkyBridge Multi Adviser Hedge Fund Portfolios has nearly $3 billion in net assets, making it one of the largest tender offer funds currently in the market. It combines top down and bottom up analysis to build a portfolio of hedge funds in different strategy groups. The exposure to any single strategy is limited to 40% of the portfolio, although this limit is measured over time and subject to liquidity constraints of the portfolio. The exposure to any individual fund is limited to 20% of net assets, as measured at the time of purchase
Its current portfolio has a heavy emphasis on event driven funds, which currently account for 58% of the portfolio. Note that the event driven category includes a wide variety of individual strategies, including corporate credit, distressed securities, merger arbitrage/special situations, and event driven equity. Notable investments include top tier, hard to access managers such as Third Point and Oaktree. Multi Hedge Fund Advisers also has bitcoin exposure through a ~7% position in NYDIG Institutional Bitcoin Fund LP , which it acquired in December 2020. The fund classifies bitcoin under “Directional Macro”.
According to the most recent prospectus, SkyBridge Multi Adviser Hedge Fund Portfolios has one share class, available to accredited investors. The shares require minimum investment of $25,000 with a maximum sales load of up to 3.0%. The management fee is 1.50% of net assets. Estimated acquired fund fees are 5.0% per annum, although the actual amount will depend on performance of underlying funds.
SkyBridge G II Fund LLC
SkyBridge G II Fund LLC follows a similar to the Multi Adviser Hedge Fund Portfolio. However, it has tighter limits on position sizing, limiting individual strategy exposure to 30%, and individual fund exposure to 10%. Given the volatility of markets, and the liquidity constraints of hedge funds, this is not a hard limit, but provides a general guideline for the portfolio manager.
The GII Fund’s portfolio is similar to the Multi Adviser Hedge Fund Portfolio. It currently has 55% of net asset in event driven funds. It has many of the same underlying managers, albeit in different proportions. Bitcoin exposure, the Galaxy Institutional Bitcoin Fund and NYDIG Institutional Bitcoin Fund provide crypto exposure.
The SkyBridge G II Fund also has lower fees than the Multi Adviser Hedge Fund Portfolios Fund According to the most recent prospectus, it has one share class, available to accredited investors. The shares require minimum investment of $25,000 with no sales load. The management fee is 0.85% of net assets. Estimated acquired fund fees are 5.30% per annum, although the actual amount will depend on performance of underlying funds.
To learn more about SkyBridge’s unlisted closed end funds, as well as other hedge fund solutions please visit our Active Funds Page.