We came across this interesting piece in Dealbook the other
day and thought it was very intriguing. Simply put: hedge funds are now
investing in lawsuits. The premise is pretty simple: they invest in one
side of the lawsuit and get a share of the winnings (if, of course,
they win the case)…
…If you think about it, it makes sense. These investors essentially
‘bankroll’ a litigation team, thus giving them access to all kinds of
different tools. The defendant/prosecutor obviously enjoys knowing that
their team has deep pockets and the lawyers themselves will find
comfort in the fact that they will have no problem getting paid…
…We’re always on the lookout for interesting opportunities like
these, so let us know if you find anymore…
Here’s my idea. Invest in sick people. Have a single entity
that amasses a large quantity of money. When people get sick, pay
out for their health care. If they get better, take a slice of
their productivity for the remainer of their lives.
The great thing about this idea is how simple it is. The strategy
of investing in lawsuits makes sense only if you can select a very few
cases that are likely to win. But when it comes to investing is
sick people, you don’t have to be selective at all. In fact, the
best outcome would be attained by covering everybody. So it would
not require a sophisticated analysis to pick and choose.
else already came up with this idea.