New York (HedgeCo.Net) – David Einhorn, the founder of hedge fund Greenlight Capital has dropped a lawsuit aimed at finding an anonymous blogger anonymous blogger “Valuable Insights” who posts on financial website Seeking Alpha.
“Greenlight dropped the suit of its own accord,” Colin Lokey a director at Seeking Alpha said, according to the NYT. “We did not at any time disclose the author’s identity formally or informally, and at no time were our actions dictated by reaching a deal with Greenlight.”
Einhorn filed a lawsuit seeking to identify the financial blogger in order to sue him or her. The hedge fund had wanted to keep its trades confidential so no one else would buy the sought-after stock, apparently blogging about it rose the stock price, frustrating and angering the hedge fund giant.
ValueWalk reported that: Sometime prior to 9:32 AM on November 14, 2013, Valuable Insights posted “Expect one mega hedge fund rock star to show up as [Micron] holder today, not Ackman, Icahn or Loeb . . . .” Valuable Insights then followed up that post by giving hints to other users of Seeking Alpha. First, he or she posted “Hint…this hedge fund has experience in consolidating (oligopoly) tech industries….” He or she continued: “Hint…would not mention if fund added more than 2 or 3 positions a quarter….” At or around 9:32 AM, after the original and follow-up messages had been posted by Valuable Insights, Seeking Alpha user “Dr. Joseph Haluska” suggested “Einhorn”, referring to Greenlight’s President and co-founder, David Einhorn. Valuable Insights responded at 10:15 AM, confirming that Greenlight was the Micron shareholder referred to in its earlier posts with the statement: “The Dr. is in…you heard it here first.”
Greenlight had wanted to keep the investment in Micron confidential until Nov. 21st, according to the NYT. Seeking Alpha refused to voluntarily reveal the name of the unidentified blogger.
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