Hedge Funds

Deephaven suspends redemptions from flagship

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Citing “the current extreme and unprecedented market conditions,” Deephaven Capital Management has suspended redemptions from its flagship Deephaven Global Multi-Strategy Fund, which for the year through September 30 had lost about 15%. The Minnetonka, Minn., firm estimates the strategy lost an additional 10% in October.

In an October 30 letter to investors, Deephaven said it would, in consultation with redeeming and continuing investors, develop a plan to both meet redemptions and continue managing the strategy. Run by Colin Smith and partly owned by Knight Capital Group, Deephaven intends to present a restructuring plan to investors by mid-December.

Deephaven Global Multi-Strategy