Deephaven Capital Management in September became the latest
U.S. hedge fund firm to indicate it planned to repurchase some
of its freedom, providing still more evidence that managers
need to think hard about choosing which model to follow in the
pursuit of so-called permanent capital - and that "permanent"
can be a misnomer for such deals.
In a letter to investors, Deephaven said it was "preparing
to potentially acquire a significant stake" in itself by
exercising the option it obtained last December from 100% owner
Knight Capital Group to execute a management buyout of as much
as 49% of the firm. In the...