Deephaven Profit Soars, Boosts Parent Knight Capital

Jan 18 2007 | 12:17pm ET

Knight Capital Group’s new investment in hedge fund Deephaven Capital Management paid off fast. Deephaven’s pre-tax profit soared fourfold last year to $27.4 million from $6.6 million in 2005, Jersey City, N.J.-based Knight said. Some $9.5 million of that went into Knight’s coffers, accounting for about one-fifth of the brokerage’s income.

In December, Deephaven chief Colin Smith and his deputies signed lucrative new employment contracts with Knight, which bought the hedge fund three years ago, putting to rest rumors that Deephaven management wanted out.

Deephaven’s assets under management leaped to $4.2 billion at the end of 2006 from $2.9 billion in 2005.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of