Type Private Headquarters Minnetonka Founded 1994 | Industry Hedge funds Founder Arvind Raghunathan | |
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Parent organization DEEPHAVEN CAPITAL MANAGEMENT LLC | ||
Deephaven Capital Management, LLC was a subsidiary of Knight Capital Group that managed various hedge funds. Deephaven was founded in 1994 with $5 million in assets and at its peak managed $4 billion in assets in six different hedge funds.
Downfall
In late 2008, Deephaven froze its Global Multi-Strategy Fund with assets of $1.6 billion. The fund lost 32% in 2008, which resulted in investors requesting to withdraw 30% of their funds. Until then, the fund had yearly returns of 16%. In 2009, Deephaven sold its assets in the Global Multi-Strategy Fund to Stark Investments for $7.3 million. Upon the sale, Deephaven's remaining assets were sold off; the office furniture was sold for cents on the dollar to a local asset manager, Disciplined Growth Investors.