Cutter Capital Management, a new healthcare-focused hedge fund founded by former Citadel portfolio manager Vince Aita, has begun trading with $275m from two institutional investors, according to a report by Bloomberg.

Cutter Capital Management, a new healthcare-focused hedge fund founded by former Citadel portfolio manager Vince Aita, has begun trading with $275m from two institutional investors, according to a report by Bloomberg.  

The report cites a letter sent to prospective investors and seen by Bloomberg as revealing that the initial funding, which has been invested via separately managed accounts, will be leveraged up to $550m. 

Cutter is also looking to raise an additional $200m for the market-neutral fund, which will bet on and against US and European pharmaceutical and biotech stocks, with a founders' share class offering cheaper fees set to open at the beginning of October.

Before setting up Cutter, Aita spent seven years at Citadel, most recently as a portfolio manager for its stock-picking business, Surveyor Capital, where he traded health care stocks. 

Last month, Cutter Capital Management was featured as one of the 20 'most exciting' hedge fund launches in 2023 in Hedgeweek's latest Insights research report.