‘$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

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

FATCA for Hedge Funds: Eight Common Pitfalls

Sep 1 2015 | 10:56am ET

FATCA is now a way of life for those in the financial industry and most professionals...

 

Editor's Note