Deephaven Capital Management

Deephaven Capital Management, LLC was a subsidiary of Knight Capital Group that managed various hedge funds. Deephaven was founded in 1994 with $5 million in assets and at its peak managed $4 billion in assets in six different hedge funds.[1]

Deephaven Capital Management
TypePrivate
IndustryHedge funds
Founded1994
HeadquartersMinnetonka, Minnesota, U.S.
AUMUS$4 billion (at its peak)
Websitehttp://www.deephavenfunds.com/

Downfall

In late 2008, Deephaven froze its Global Multi-Strategy Fund with assets of $1.6 billion.[2] The fund lost 32% in 2008, which resulted in investors requesting to withdraw 30% of their funds.[3] Until then, the fund had yearly returns of 16%. In 2009, Deephaven sold its assets in the Global Multi-Strategy Fund to Stark Investments for $7.3 million.[3] Upon the sale, Deephaven's remaining assets were sold off; the office furniture was sold for cents on the dollar to a local asset manager, Disciplined Growth Investors.[4]

References
  1. Strasburg, Jenny. "Deephaven Shuts Hedge Fund After Redemption Requests (Update3)". Bloomberg. Retrieved 28 June 2014.
  2. "Deephaven Freezes Multistrategy Hedge Fund to Avoid Asset Sales". Bloomberg. October 31, 2008.
  3. "Deephaven to Sell Flagship Fund". NYTimes.com. January 27, 2009.
  4. Star Tribune, October 23, 2009 Archived January 9, 2010, at the Wayback Machine
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