AR to respond to Elliott on September 2
Wed Aug 25, 2010
Hedge fund seeks source of investor letter leak.
AR Magazine next week will respond to Elliott
Management’s motion to compel discovery against
the publication, which the New York hedge fund filed last week.
Elliott is asking the New York State Supreme Court to make
AR reveal the source of a news story based on the
fund’s quarterly investor letter. The story will
appear in the September edition of AR.
Elliott filed a petition in the court on August 19 alleging
that the disclosure of the fund’s positions and
their performance—which are included in the letter and
the story—would "cause significant harm to Elliott and
negatively affect its competitive advantage in relation to
other market participants."
AR will file an affidavit to the court on September 2
with its response. A hearing is set for September 9.
Elliott’s legal action is an unusual move even in
the opaque world of hedge funds. Managers have lately taken
steps to prevent their documents from being widely distributed,
such as watermarking them or employing technology that does not
allow users to print or forward them, but this is believed to
be the first time a hedge fund manager has taken legal action
against a publication in an attempt to uncover a source. The
complaint has received a fair amount of news coverage,
front-page story in the New York Post’s
business section on August 21.
AR has already
published a story online about the investor letter,
including information about some of its positions. Elliott,
which manages $17 billion, was founded 33 years ago by Paul
ISSN: 2151-1845 / CDC10004H