Deephaven to shut down event funds

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Deephaven Capital Management announced yesterday that it will shutter its on- and off-shore funds that had focused on U.S. event-driven strategies following poor performance and massive redemption requests. Andy Greenberg, who has managed the funds for about a year, is leaving the firm.

Deephaven Event Fund (onshore) lost 0.7% in 2007, while the offshore version lost 1.29%, as activity in mergers and acquisitions, as well as corporate restructurings, dried up. Over the same period, the Absolute Return Event Driven Index gained 5.97%.

Through January 18, the funds, which held about $780 million, were down about 6%, according to an