04/02/2014

Cedar Hill Alum Readies Financial-Stock Fund

A portfolio manager who helped Cedar Hill Capital net huge profits betting against subprime mortgages is laying the groundwork for his own hedge fund.

Cyrus Sadiq most recently spent two years at Visium Asset Management, but previously worked at Cedar Hill, where he managed a portfolio of mortgage derivatives that largely contributed to a whopping 198% return in 2007 and a 96% gain in 2008. He’s now setting up shop in New York with plans to launch a financial-stock vehicle by yearend.

Using a broad definition of financial companies, Sadiq’s yet-to-be-named fund will have some exposure to the housing sector by investing in REITs and homebuilders. It will also target financial technology, for instance through investments in developers of mobile-payment applications. He’ll start out focusing on the U.S. but eventually plans to opportunistically widen the fund’s geographic scope.

For now, Sadiq is talking to traditional limited partners as well as fund seeders. Before launch, he plans to hire a chief financial officer and a researcher.

Sadiq joined Cedar Hill in 2006 from Goldman Sachs, where he was an analyst in the mortgage department. At the time, Cedar Hill was managing $150 million — a figure that ballooned to $1.5 billion in 2009.

In 2011, he left Cedar Hill for Visium, where he remained until last August. He ran a book of financial stocks for Visium, which currently has $6.5 billion under management.

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