New York Post – The top brass at a $4 billion hedge fund is close to inking a multimillion-dollar employment contract with Knight Capital Group, the Nasdaq trading firm that bought the fund more thanthree years ago, The Post has learned.<\/p>\n
The new contracts with Minneapolis-based hedge fund Deephaven Capital Management are expected to be completed as early as next week and could give Deephaven chief Colin Smith and his deputies millions more than they previously earned, sources said.<\/p>\n
Smith and other Deephaven managers have been in heated negotiations with Jersey City-based Knight since September, sources said. That has some investors speculating that the firm’s principals might separate from Knight or try to buy majority control of the firm.<\/p>\n
A Knight spokeswoman did not return calls for comment.<\/p>\n
Any deal struck between the two parties comes as profits from Deephaven have continued to boost Knight’s earnings at a time when the traditional trading business has slowed.<\/p>\n