Cypress Sharpridge Investments (NYSE:CYS) is a real estate investment trust (REIT) that invests in residential mortgage backed securities (RMBS) guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae. The company was founded in 2006 and is externally managed by Cypress Sharpridge Advisors, a joint venture between private equity firm The Cypress Group and Kevin Grant's Sharpridge Capital Management. The company's initial public offering (IPO) of stock is scheduled for 12 June 2009. It plans to sell 8.5 million shares at between $11 and $13 per share. Existing investors in the company include Talon Asset Management (17.38%), Fidelity Investments (10.72%), Robeco Investment Management (7.33%) and Woodbourne Partners (5.87%).
In 2008, the company had $55.5 million in investment income, down 59% from $135 million in 2009. In the same year, it made a net loss of $39.2 million, up 40.0% from the $29.7 million net loss made the previous year. In the 1st quarter of 2009, the company had $9.3 million in investment income, down 54.8% from $20.6 million in the 1st quarter of 2008. In the same quarter, it made $13.0 million in net income, up 138% from the $34.4 million net loss made in the first quarter of the previous year. As of 31 March 2009, the company's RMBS portfolio size, yield and leverage ratio was $699 million, 5.2% and 7.0 respectively.