Delaware Orders Hedge Fund to Disclose Investors’ Names, Paving Way for Litigation

The Delaware Supreme Court Aug. 12 affirmed a lower court’s decision compelling collapsed hedge fund Parkcentral Global L.P. to comply with an investor’s request for disclosure of the identities of the fund’s other investors (Parkcentral Global L.P. v. Brown Investment Management L.P.).

Writing for the court, Chief Justice Myron Steele held that there was no statutory or contractual basis that would permit Parkcentral to avoid the disclosure.

The decision could make it easier for hedge fund investors to join forces when seeking legal redress for hedge fund mismanagement.

`Shadows of Secrecy.’

“All too often, hedge funds have operated ...