Deephaven posts first quarter loss of $4.1m; drags down Knight Capital


Deephaven Capital Management posted a first quarter loss of $4.1 million, dragging down the performance of its 51% owner Knight Capital Group, though the broker’s trading gains outweighed Deephaven’s losses.

The $3.5 billion hedge fund firm’s losses stemmed from the poor performance of a number of its portfolios and the resulting closure of its on- and off-shore U.S. event-driven funds, which the firm announced in late January.

“Deephaven experienced one of the more difficult quarters in its fourteen-year history,” said Knight Capital’s chief executive officer Tom Joyce in Knight’s filing with the U.S. Securities and Exchange Commission. “Blended