When hedge funds try to own commonly used ideas

Be careful what commonly-used terms and concepts you deploy. A hedge fund might try to sue you.


November 2, 2020

Last fall, LeBron James garnered some laughs when he tried (but, ultimately, failed) to trademark the phrase “Taco Tuesday.”

Common sense won out as we collectively thought, “you can’t own what every 6th grader looks forward to the most every month hahaha.”

Investor turned writer Mario Gabriele — a friend of The Hustle — is going through a similar ordeal with a $6B hedge fund (Durable Capital).

Gabriele co-wrote an essay about high-performing stocks

He called these companies “compounders” capable of going from “good to great” following years of consistent returns.

Common sense would dictate that these are words used by normal human beings, and can’t be copyrighted by some faceless corporation.

Being that it’s 2020, common sense… well, there is none anymore.

That $6B hedge fund is threatening legal action…

… if Gabriele continues to use terminology and concepts related to these high-performing stocks.

Mind you, Gabriele is a one-man newsletter operation that is currently bringing in $0.

We have 2 thoughts.

  1. Compounders. Compounders. Compounders. Compounders.
  2. If you want to enact some karmic justice and — more importantly, get amazing business analysis including pre-IPO deep dives — subscribe to Gabriele’s substack, The Generalist.

In sum: compounders, compounders, compounders.

Daily briefings, straight to your inbox

Business and tech news in 5 minutes or less

Join over 1 million people who read The Hustle

Psst

How'd Bezos build a billion dollar empire?

In 1994, Jeff Bezos discovered a shocking stat: Internet usage grew 2,300% per year.

Data shows where markets are headed.

And that’s why we built Trends — to show you up-and-coming market opportunities about to explode. Interested?

Join us, it's free.

Look, you came to this site because you saw something cool. But here’s the deal. This site is actually a daily email that covers the important news in business, tech, and culture.

So, if you like what you’re reading, give the email a try.