Tom Wilcox's Cider Mill Hedge Fund Begins Trading With $150M

Apr 1 2016 | 8:12pm ET

The hedge fund founded by former Shumway Capital Partners equities head Tom Wilcox has started trading with around $150 million in assets.

Wilcox, whose Cider Mill Investments reportedly has $400 million in total commitments, was originally a family office formed after he left Shumway, which imploded in early 2011 after its founder, former Tiger Management portfolio manager Chris Shumway, announced he would be stepping down from day-to-day management of the $8 billion fund and turning the CIO duties over to Wilcox. 

The news sparked more than $3 billion in redemptions, forcing Shumway to quickly return the remaining $5 billion in capital and ultimately shutter the fund. 

Wilcox’s team at Cider Mill includes several former Shumway Capital colleagues, including analyst Jeff Nykun, trader Susan Suh and COO Ken Palumbo, according to a Bloomberg article citing an investor letter. 

A well-known Tiger Cub, Shumway Capital was founded in 2002 with five employees and $70 million in capital. Shumway grew the firm to $8 billion and 95 employees over its eight-year run, generating average annual returns of 17%. Wilcox, who is credited with a well-timed call to short financial stocks ahead of the financial crisis that made the fund a killing, had been Shumway’s heir apparent.

At least four hedge funds were spawned from Shumway’s demise. In addition to Wilcox’s Cider Mill, March Altus, Glade Brook Capital, and Bluemar Capital Management were all started by former Shumway executives.

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