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 But—taking a page from Bulldog Investors founder Phil Goldstein’s playbook—she’s not saying anything more “due to outdated securities laws predicated on the false theory that non-wealthy investors are too stupid to comprehend financial information and act in their best interests.”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

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR