Deephaven Capital Management increased its assets under management to...

Deephaven Capital Management increased its assets under management to $3.6 billion at the end of 2004 from $1.6 billion at the end of 2003, according to the annual report filed by the firm's parent, Knight Trading Group. The manager's annual return slipped last year to 6.5% from 13.9% in 2003. Deephaven runs three hedge funds - a market-neutral fund, a long-short equity fund and an event arbitrage fund - and plans to launch a credit opportunities fund later this year. The firm is also increasing its allocation to investments in Europe and Asia, according to the report.