Leaking to reporters is a grand tradition on Wall Street. When it comes to hedge funds, performance reports--which are supposed to be confidential--often find their way into print.

The leakers can be boastful executives or angry limited partners. But rarely does a leak end up in court.

However, Elliott Management has gone legal to force AR magazine to turn over information about who leaked its June 30 letter to investors, reports FINalternatives. According to the plaintiffs, the letter's public release would cause "significant harm to Elliott and negatively affect its competitive advantage in the market."

The fund does not want to prevent publication, it just wants to know who leaked it--and to punish the leaker. The company goes so far as to say it's on a witch hunt.

AR is expected to publish the letter soon. It may not be difficult to determine who leaked the letter, as the firm uses watermarks unique to each recipient. But they would have to see the letter. A witch hunt may seem over the top; management is no doubt trying to send a message. Perhaps it could have been dealt with in the family.

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