Hedge Funds

Sowood to hive off private equity group

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Sowood Capital Management, a $2 billion hedge fund shop in Boston, announced late last week that it will separate its growing private equity business from its core hedge fund operations through the creation of an independent company to be called Denham Capital Management.

Denham is expected to become fully independent of Sowood by July 1. Once Sowood receives shareholder approval, Sowood's private equity funds, currently called the Commodity Partners funds, will be renamed the Denham Commodity Partners funds. Denham will launch with $2.3 billion in assets under management.

In a press release posted on the Sowood Web site, founder