Knight Capital, which owns a controlling interest in hedge fund group Deephaven Capital Management, is reportedly considering whether to sell its 51% stake in the firm, among other options. Deephaven, based in Minneapolis, posted a fourth-quarter loss of $5.7 million.
According to Knight Capital’s fourth-quarter earnings call, held yesterday, Deephaven’s assets under management fell by half in 2008 to $2 billion. In October, the firm suspended redemptions from its flagship Deephaven Global Multi-Strategy Fund, which lost about 35% for the full year. Deephaven shut down its poorly performing $750 million event-driven vehicle in early 2008.
Results from other Deephaven