Litigation Is the NewAsset Class

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www.argentumlitigation.com

NEWSA new, non-correlated assetclass 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.

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

In today’s 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

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.