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 But—taking a page from Bulldog Investors founder Phil Goldstein’s playbook—she’s not saying anything more “due to outdated securities laws predicated on the false theory that non-wealthy investors are too stupid to comprehend financial information and act in their best interests.”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

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

As initial anxiety over Donald Trump’s victory gave way to market euphoria in the days following the election, there was a casualty. Gold prices.