Kinght Rebounds On Deephaven Sale

Apr 26 2010 | 12:07pm ET

In the first quarter of last year, Knight Capital Group got rid of its troublesome hedge fund unit, Deephaven Capital Management. In the first quarter of this year, that move paid off in a big way.

The Jersey City, N.J.-based brokerage said its profits for the first three months of the year tripled from the same period last year, despite lower trading volume. Knight earned $27.8 million in the first quarter as revenue jumped 16% to $284.2 million.

The firm would have earned even more last year had it not been for Deephaven. Knight’s profits for last quarter came out to 30 cents per share. In the previous first quarter, it had been 10 cents a share—after a 23-cent-per-share loss attributable to the sale and closure of Deephaven.

Last January, Deephaven agreed to sell the assets of its flagship hedge fund to Stark Investments. The firm then closed its doors.


In Depth

Hedge Fund Selection: Sussex Partners’ Patrick Ghali Bullish On The Best Of The Best

Oct 2 2014 | 5:56am ET

Ten years ago, Patrick Ghali and Robin Nydes co-founded Sussex Partners with the...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.