Scaramucci’s New Orleans Virgin Hotel Investors Likely Wiped Out

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.

If the property fetches its broker’s estimate of roughly $43 million, then clients “will likely suffer a complete loss of invested capital,” SkyBridge wrote ...