Stark founders buying Deephaven hedge fund - Minneapolis / St. Paul Business Journal:

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have agreed to buy the hedge fund businessa from Knight Capital Group for upto $44.5 million. Brian Starik and Mike Roth, who lead Stark Investments, will pay an initia $7.3 million for assets in Minn.-based Deephaven’s Global Multi-Strategy Funds. The payment coul reach up to $37.2 millio n more depending on the amount of investors in Deephave who decide to roll assets into fundsw managed by Stark and how those assets performm over the next two Stark Investments hasabout $10 billion in assets undee management. Deephaven suspended withdrawals fromits $1.6 billion Deephaven Global Multi-Strategy fund Oct. 30, after investors sought to redeem some 30 percent of assetsunder management.
The fund at one time manage nearly $3 billion, but sustained heavy withdrawals in 2008 after recordinvg losses of about32 (NASDAQ: NITE) of Jersey City, owns 51 percent of Deephaven. Knight has expressed disappointmeny overthe fund’s performance, and last year. Knighft said in a statement that the assetes are being soldoff "with the goal of protectinh the interests of Deephaven investorw in the current Completion of the transaction is subject to approvalo of investors representing at least a majority of the assetes under management in the Global Multi-Strategy Fund.