Greenlight Sought To Keep Micron Investment Secret

May 5 2014 | 11:30am ET

Greenlight Capital founder David Einhorn’s fury at a blogger for breaking news of its investment in Micron Technology followed his effort to keep his moves a secret for an extra week.

On the same day that Seeking Alpha blogger “Valuable Insights” revealed that the hedge fund was buying up shares of Micron, Greenlight asked the Securities and Exchange Commission for permission to delay disclosing its stake in the semiconductor company. Earlier this year, Greenlight asked a court to force Seeking Alpha to identify Valuable Insights; the hedge fund learned the blogger’s name independently and dropped the case.

On Nov. 14, Greenlight asked the SEC for a seven-day disclosure extension. The hedge fund was in the process of building a 47-million-share stake in Micron and worried that “mirror trading by ‘copycats’ could lead to unwarranted volatility and inflated prices for the security,” Greenlight wrote in a letter obtained by The New York Times. And, indeed, Greenlight complained in February that Valuable Insights’ blog post had “forced [it] to pay higher prices for its Micron securities.”

The seven-day extension would have expired on Nov. 21—the day Einhorn announced his Micron bet at an investment conference.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...