Big stone in the shoe. The conflict with former employee James Fischbeck has been poisoning the life of the Greenlight hedge fund, founded thirty years ago by David Einhorn, for four years now. If there’s one thing hedge funds hate, it’s airing their dirty laundry for everyone to see. And even more so, expose their feuds and other internal conflicts during trials.
These funds, which manage the money of institutional investors who are very concerned about privacy, do so only under duress and coercion. They prefer peaceful solutions, outside the courts and away from media attention. They don’t want to reveal any issues that could be used against them by competitors. Losses and reprehensible actions (insider trading, price manipulation, scandal) of their traders and managers will affect the reputation of the funds and discourage clients.