Feeling Lucky? Maybe It's Time To Invest In Somebody Else's Lawsuit

Jay Greenberg thought he knew a bit about capital markets, having run the numbers for several multibillion-dollar deals at Deutsche Bank including SAP ’s $5.8 billion acquisition of Sybase in 2010.
Then somebody told him about litigation finance, an estimated $1 billion market where investors bet on the outcome of corporate lawsuits. Hedge funds have been doing it for years, and there are even a couple of public companies that invest in litigation, including London’s Burford Capital. But it was the returns that caught Greenberg’s attention: 50% or more per year, better than just about any hedge-fund strategy short of insider trading.
“I thought `This is really interesting,’” said Greenberg, 29, a Boston College finance major who joined Deutsche Bank straight out of school. “How are they generating 50%-plus annualized returns, yet not a lot of people know about this?”
Part of it is the legal trade’s self-interested tendency to keep non-lawyers out of the business. Part of it is the “ick” factor of pouring money into litigation and potentially prolonging cases that should be settled or dropped. But mostly, Greenberg became convinced, it was a lack of information.

Feeling Lucky? Maybe It's Time To Invest In Somebody Else's Lawsuit OMZRx7

Feeling Lucky? Maybe It's Time To Invest In Somebody Else's Lawsuit OMZRx7

More: http://www.forbes.com/sites/danielfisher/2014/11/19/lexshares-invests-in-litigation/?google_editors_picks=true
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Anarcho-Capitalist, AnCaps Forum, Ancapolis, OZschwitz Contraband
“The state calls its own violence law, but that of the individual, crime.”-- Max Stirner
"Remember: Evil exists because good men don't kill the government officials committing it." -- Kurt Hofmann

Feeling Lucky? Maybe It's Time To Invest In Somebody Else's Lawsuit

Feeling Lucky? Maybe It's Time To Invest In Somebody Else's Lawsuit

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