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Citadel Vet Cracks Whip

Mark DeCambre

Ex-Citadel portfolio manager Michael Derick has launched a long/short value-focused hedge fund.

The Chicago-based outfit, called Steeplechase Capital Advisors, is said to be hoping to raise some $500 million to $1 billion in equity from institutional and high-net worth investors. Derick, who declined to talk specifics about the fund, including its size and its target investors, says the fund will have a strong value-oriented flavor.

"It's a pretty simple strategy, but it's all about the execution," Derick says.

In the past, Derick was a co-portfolio manager in hedge fund Citadel's primary strategies group. The fund manager also has had tours of duty as an analyst at long/short hedge fund Basswood Partners and at J.P. Morgan(JPM Quote).

Steeplechase received an equity infusion from venture fund Skybridge Capital, which invests in start-up fund managers. The venture fund is said to have invested between $25 million and $50 million in Steeplechase. A call to Skybridge manager Anthony Scaramucci was not immediately returned.