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.
Drat. Someone else already came up with this idea.
