Hedge Funds

BayStar II special situations fund is closing


The managers of the special situations fund BayStar Capital II are planning an orderly liquidation of the fund's assets. The fund, which is overseen by San Francisco-based BayStar managing directors Larry Goldfarb and Steven Derby, is being closed because of differences between the two partners regarding the direction to take the portfolio, which has had positive performance in 2005.

The fund invests in U.S. companies across the capital structure, using everything from convertibles and options to direct equity stakes and common stock. Word of the impending closure came as investors were told in a June letter that BayStar Capital