Wednesday, 28 September 2016
Last updated 20 hours ago
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.