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

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...