‘$1,000 Hedge Fund’ Manager Fights Back

Feb 4 2010 | 12:07pm ET

News that lawyer Sarah Bernett had launched a hedge fund with a minimum investment requirement of just $1,000 brought skepticism and derision from the blogosphere. But Bernett is not taking the unkind words lying down.

The litigator and founder of hedge fund advisory Bernett Capital Management took to the blogs this week, defending her new Bernett Diversified Global Fund against the slings and arrows of Dealbreaker.com commenters and Business Insider posters.

In response to a Tuesday Dealbreaker post, Bernett wrote, “Just because I launched a hedge fund doesn’t mean it is a scam,” before doing battle with dozens of commenters who, in her words, “take cruel enjoyment in slandering those you don’t know and cutting down anybody who is receiving the limelight.” She also advised that “slander is punishable and actionable” and recommended “psychological help for your propensity to lie.”

Yesterday, she returned to more familiar ground, enumerating the legal arguments in favor of a hedge fund for low- and middle-income investors on Business Insider.

“The Securities Act of 1933 requires a hedge fund to furnish certain information ‘to any purchaser that is not an accredited investor’ at a reasonable time prior to sale,” she wrote. “If it were illegal for a hedge fund to offer for sale securities to non-accredited investors, then the federal securities law would not permit, much less describe the process for, a hedge fund to furnish non-accredited investors with information relating to the sale of its securities.”


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

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 Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of