Lawyer Founds Hedge Fund With $1,000 Minimum Investment

Feb 2 2010 | 9:44am ET

Sarah Bernett is new to the hedge fund industry, but the young lawyer is taking a page from one of the most outspoken of industry veterans.

Bernett, a litigator with seven years experience, last year founded a hedge fund advisory, Bernett Capital Management. On Jan. 1, she founded a hedge fund of her own, catering to low- and middle-income individuals with an “unprecedented minimum investment of $1,000.” But—taking a page from Bulldog Investors founder Phil Goldstein’s playbook—she’s not saying anything more “due to outdated securities laws predicated on the false theory that non-wealthy investors are too stupid to comprehend financial information and act in their best interests.”

According to a filing with the Securities and Exchange Commission, the Bernett Diversified Global Fund has raised $30,050 from four non-accredited investors. Bernett aims to attract $500,000 for the fund, which is registered at Bernett’s apartment on Manhattan’s Upper East Side. The fund's prime broker is listed as online brokerage TD Ameritrade.

The global macro fund charges 2% for management. The SEC filing does not disclose a performance fee.

Bernett Capital also offers investment management and marketing services to hedge funds launching with less than $5 million. Before launching the hedge fund firm, Bernett—who, according to her LinkedIn profile continues to work for “various law firms”—worked at law firm Morelli Ratner and as an appellate court attorney for the New York State Unified Court System.


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...