Chart of the month: Deephaven Market Neutral Fund


Deephaven Capital Management's Market Neutral Fund advanced 3.51% in January, handily outperforming the 2.97% rise of the Absolute Return Multistrategy Index, which makes its debut this month. Since its inception in the spring of 1994, the fund has produced positive monthly results 87% of the time for an annualized return of 17.65%.

Minnetonka, Minn.-based Colin Smith, CIO, manages the $1.4 billion strategy and is positive about the year ahead. By shifting capital from the U.S. to Asia (particularly Japan), Smith side-stepped last year's tough domestic convertibles market. That move should compliment the firm's already strong credit, event-driven and European