Knight operates Deephaven Capital Management, an asset management business for institutions and high net worth individuals. Deephaven uses market-neutral investment strategies focused on preservation of capital. Deephaven's principal fund, the Deephaven Market Neutral Master Fund, strives to capture mispricings or spreads between related capital instruments, making it substantially non-correlated with the general debt and equity markets. Within the Market Neutral Fund, Deephaven employs a variety of strategies that include convertible arbitrage, event/risk arbitrage, relative value equity, distressed debt and private placements in public companies. Deephaven also manages the Deephaven Long/Short Equity Fund and evaluates other new offerings for its clients that will best leverage its strengths. Deephaven has operated as a wholly owned subsidiary of Knight since it was acquired in 2000 and today remains a substantial, stand-alone business segment managed by a strong team with a long-term employment commitment. At year-end 2003, Deephaven managed approximately $1.6 billion of assets.