Hedge Funds

Severn River to break from multi-strategy mold


Scott Roth has decided to recast Severn River from a diversified multi-strategy firm into a tightly focused event-driven player.

In a September 15 letter to investors, the convertible bond specialist and alumnus of Sagamore Hill said that his year-old, $560 million firm simply could not compete with the major multi-strategy firms which, he noted, can diversify across many strategies, allowing them to get through periods when historically high-performing strategies suffer.

Going forward, Severn River is abandoning such relative-value strategies as convertible, merger and capital structure arbitrage.

Severn River's performance was flat during its first six