Hedge fund manager David Einhorn’s Greenlight Capital is seeking the name of one of Seeking Alpha’s anonymous bloggers, Bloomberg News reports.
Greenlight has petitioned Seeking Alpha to reveal the identity of an anonymous Seeking Alpha contributor who allegedly revealed the hedge fund’s stake in Micron Technology in a blog post.
According to the court documents posted by ValueWalk, Greenlight wants to know the name of the blogger so it can sue them.
Greenlight alleges that the user wrongfully disclosed the hedge fund’s trade secrets and breached confidentiality.
Greenlight also says that Seeking Alpha has refused to voluntarily reveal the name of the unidentified blogger.
The user, according to Greenlight’s court petition, goes by “Valuable Insights” on Seeking Alpha.
Here’s a screenshot of the user’s profile:
Greenlight says that it began to amass a stake in Micron Technology on July 2, 2013, which was during the third quarter of 2013.
40-five days after the end of each quarter, hedge funds of a certain size are required to disclose their equity long holdings with the SEC in a form known as a 13-F.
Greenlight did not disclose its Micron stake in the third-quarter 13-F. Instead, Greenlight requested confidentiality treatment via a “Confidentiality Letter” request filed with the Securities & Exchange Commission on November 14, 2013, court documents show. Greenlight said in the court petition the reason was that it wanted to continue to build its position.
The only folks who were aware of the Micron position were Greenlight employees, counsel, prime and executing brokers and other agents, the court document says.
Greenlight claims that before 9:32 a.m. EST on November 14, 2013, before it had filed its “Confidentiality Letter” with the SEC, Seeking Alpha blogger “Valuable Insights” wrote, “Expect one mega hedge fund rock star to show up as [Micron] holder today, not Ackman, Icahn or Loeb…”, the court documents show. Greenlight says that the user “Valuable Insights” also posted hints about the identity of the fund manager.
Einhorn didn’t publicly announce his stake in semiconductor producer Micron until the inaugural Robin Hood Investors Conference on November 21, 2013.
In this case, Seeking Alpha, a network for financial bloggers to post about stock ideas, is a respondent (similar to a witness), not a defendant.
Here’s Seeking Alpha’s policy on anonymous bloggers (emphasis ours):
While Seeking Alpha editors greatly prefer that our authors use their real names, we recognise that is not always possible. Due to regulations at their workplace or other factors, some contributors are not able to reveal their real names. In addition, many well-known, veteran stock market bloggers (some of the finest, in fact) write under a pseudonym.
To allow these writers to reach a broad investment public that’s interested in reading and discussing their ideas, Seeking Alpha permits our contributors to remain anonymous to the public if they prefer. Our assumption, as always, is that our readers desire rigorous and insightful research and opinion on the stocks and sectors they follow – the author is ultimately less important than the ideas conveyed.
There are firm limits to this anonymity, however: Seeking Alpha holds our anonymous contributors to the same compliance and biographical standards as contributors who write under their own name. We insist on receiving the author’s real name and contact information (which we keep confidential) and maintain a correspondence with the author, forwarding the author any questions or concerns that may emerge about their articles. Stock positions held by anonymous authors must also be disclosed.
When an author uses a pseudonym, it is clearly stated on the SA author page.
If you would like us to forward an inquiry to an anonymous author, please email contributors [at] seekingalpha.com
Here’s the full court document posted by ValueWalk: