Hedge fund manager Stark Investments completed the acquisition of the assets of Deephaven Capital Managements flagship Global Multi-Strategy Fund on March 31 and is now investment manager of the $1.2 billion fund, confirmed Cam Stevenson, spokeswoman for Stark.
As part of the deal, Ms. Stevenson said, investors in four of Deephavens other hedge funds selected Stark as the liquidator of the funds; those funds will be closed.
About 95% of the $400 million European event fund managed by Deephaven has been returned to investors, said a source who asked not to be identified. The ultimate fate of the fund is not clear, said the source.
Investors in the GMS fund, which also eventually will be liquidated, have until May to decide whether to move their assets into Starks multistrategy investment approach through one of three commingled vehicles, through a separate account for larger investments or into a liquidation vehicle.
Separately, Stark, which managed $8 billion as of Feb. 28, instituted a new redemption policy for investors in its Stark Investments International and Shepherd Investments hedge funds. Investors will receive part of their redemption as an in-kind distribution through a continued share in special investment vehicles that will hold the funds least liquid assets until they can be sold at more reasonable prices, Ms. Stevenson said.
We wanted to balance the interests of continuing and departing investors in terms of dealing with redemption requests, she said.