Hedge Funds Performance

Pentwater on the mend as Halbower reunites Deephaven team

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Pentwater Capital Management, the event-driven firm started by former Deephaven Capital Management star trader Matthew Halbower, has come a long way since the dark days of last fall. The firm gained 26.6% through April and recently finished reconstituting the three-man team that had worked closely with Halbower at Deephaven to produce a 16.7% annualized return over his five years there.

Pentwater hired Nick Brown and Frank Strezo, former assistant portfolio managers at Deephaven, which closed recently after selling its flagship fund to Stark Investments. They join Aaron Switz, another former Deephaven assistant portfolio manager, who joined Pentwater in mid-2008.

Pentwater's