Charlotte Business Journal – In early 2008, Jim Morgan and his partners at Covenant Capital sent a gloomy letter to their investors.

After a couple of disappointing years, the letter said, the hedge-fund firm was preparing to close. It told investors how they could retrieve their funds.

While a handful of investors took their money, a number asked Morgan, now chief executive of Krispy Kreme Doughnuts Inc., and his team to continue.

They did. And Covenant went on to have one of its best years in 2008, even as the market was collapsing.

Covenant’s fund finished 2008 up 12%, while the S&P 500 ended the year down 38% and the Dow Jones Industrial Average dropped 34%.

With less than $10 million in assets, the firm is now reopening the fund to new investors as well as accepting additional capital from existing investors.

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