Hedge Funds

Deephaven readies first long/short fund


Deephaven Capital, the $1.5 billion hedge fund shop best known for its market-neutral statistical arbitrage portfolio, is planning to launch its first stand-alone long/short product in the first quarter of 2004.

About $125 million of Deephaven's portfolio is already targeted at long/short in its flagship market neutral portfolio. The existing component, as well as the new fund, will be overseen by Bob Schnell and his team of six analysts.

Schnell's approach will employ fundamental analysis of multi-cap stocks using both quantitative and qualitative factors. Although the long/short portfolio will be offered as a stand-alone product for the first