Tuesday, 27 January 2015
Last updated 2 hours ago
Feb 18 2014 | 11:15am ET
Greenlight Capital has asked a court to force blog Seeking Alpha to identify a pseudonymous contributor who disclosed the hedge fund's investment in Micron Technology before it was made public.
New York-based Greenlight is seeking a court-order against Seeking Alpha, directing the blog to reveal the identity of "Valuable Insights," who on Nov. 14 revealed in a post that Greenlight was buying up Micron shares. The report came ahead of both Greenlight's confidentiality letter disclosing the stake to the Securities and Exchange Commission and its public announcement in November.
According to the hedge fund, the only people aware of its activities prior to Valuable Insights' post were "persons subject to contractual, fiduciary or other duty to maintain the confidentiality of that information: Greenlight's employees, legal counsel, prime and executing brokers, fund administrator, and other agents," it said in the New York State court filing.
In addition, Greenlight wrote, "upon information and belief, Valuable Insights owned shares in Micron at the time of the postings. The trading price for Micron's shares rose immediately after Valuable Insights' posting. because this was the very time frame in which Greenlight was in the process of building its Micron position, it was forced to pay higher prices for its Micron securities."
Greenlight bought more than 23 million Micron shares in the third quarter, and more than doubled that stake in the fourth.
Twelve days after Valuable Insights' post, Seeking Alpha refused to identify the author, who is described as a fund manager with more than two decades in the securities industry.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…