Greenlight Seeks Name Of Blogger

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.


In Depth

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Opportunities Ahead: Asian Fixed Income and Currency Markets

Apr 24 2015 | 6:18am ET

For hedge funds focusing on Asia, the policy uncertainty, unclear interest rate...

 

Editor's Note