Tuesday, 31 May 2016
Last updated 55 min ago
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.”