NEWS

A new, non-correlated asset

class emerging?
In the never-ending search for non-correlated beta,
is there anything new under the sun? Litigation
qualifies in some respects.
It's not entirely new as an investment, but its potential
for outsized returns, some think anyway, make it worth
a new look. In the wake of the financial crisis, we may
indeed be in for a bull market in litigation.

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In todays declining market amid rising insolvencies,
investors are inevitably paying attention to the
uncorrelated returns offered by litigation financing,
says Mr. Mirchandani at Lovells. Hedge fund MKM
Longboat hired Susan Dunn from IMFL to set up
Harbour Litigation Funding in 2007, and Mr. Cork
says Smith & Williamson would certainly consider
allowing its asset management clients to invest in its
litigation funding activities if the demand emerged.
Francis Kean and Roderic Mclauchlan, Jun 2007,
Legal Gold, New possibilities through litigation
funding, www.thebanker.com

Litigation Is the New

Asset Class
With the demise of traditional stock and bond
equity markets, a new asset class is attracting
the attention of hedge fund managers seeking
real bang for their bucks.

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About $4 billion in investor money is now invested in
lawsuits that have been brought by corporate
plaintiffs. When it comes to litigation as an asset
class, traditional investment skills will not do.
Instead of picking stocks, funds must choose and
finance cases that can be won.
Editors Corner, Fierce Finance, Jan 2009

www.argentumlitigation.com