Deephaven Capital Management, a US hedge fund manager with $4bn (€3bn) of assets under management, has said it will give back up to $68m of performance fee income earned in the first six months of the year if it fails to keep its funds above water in the second half.

Andrew Greenstein, associate general counsel at Deephaven's owner Knight Capital Group, said in a Securities and Exchange Commission filing: "If a Deephaven fund with a six-month performance period incurs losses in the performance period ending December 31, 2007, Deephaven will return all or a portion of the incentive allocation fees collected from investors in that fund for the six-month performance period ended June 30, 2007."