Scaramucci’s New Orleans Hotel Bet Likely to End in Total Loss for Clients

Hedge fund investor Anthony Scaramucci’s firm sent a letter to clients in his so-called opportunity zone fund with a sobering message: You’re likely facing a total loss.

The fund’s one investment, a Virgin Hotels property in New Orleans’ Warehouse District, had already been underwater. But in September, Scaramucci’s SkyBridge Capital learned the asset was valued at less than half that of earlier appraisals. It wasn’t practical to refinance, and the hotel had to be sold.