Hedge Funds

Steep losses spur scramble at K Capital


K Capital Partners of Boston, the $3 billion European event-driven firm founded by Thomas Knott and Abner Kurtin, is offering investors in its troubled multistrategy funds a deal aimed at recouping their losses through the firm's high-performing single-strategy portfolios.

The chance to move capital without penalty was outlined in a detailed letter sent to investors after a disastrous November, in which K Capital, the firm's flagship multistrategy fund, lost roughly 10.5%.

The decline brings the fund's year-to-date return to negative 13.9%; those losses were amplified considerably in Special K, the firm's leveraged multistrategy portfolio. That vehicle racked up a