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Country risk 2010:

Country risk 2010:

Bi-annual Country risk survey monitoring political and economic stability of 186 countries

Euromoney Awards for Excellence 2010

February 2009

Litigation is the new strategy

Where there is market turmoil, you can bet your bottom dollar there will be a lawsuit. And indeed, more than betting, these days investors are handing over money on a long-term basis to fund managers who will pick out lawsuits that are likely to pay out.




Juridica Capital Management is one such manager. Juridica began operations in December 2007 and its net asset value is up at the end of its first year. When returns for the aggregated hedge fund index were minus 18%, it is no surprise that the strategy is gaining favour. Competition is still limited, however. Juridica focuses on the UK and the US. "The US corporate litigation market is a $30 billion-plus litigation market and we have very little competition other than one major investment bank that provides its own capital. There were some players before the crash but we believe they are...


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Credit risks don't just disappear when banks offload them. They get transferred to people who have no contact with the source of that risk. Non-bank counterparties now bear credit risk. Are these the best people to bear it or are they the people least able to understand it?

Frank Partnoy, a former Morgan Stanley banker, now a law professor in California and author of books such as F.I.A.S.C.O. and Infectious Greed, at the Euromoney Global Borrowers Forum June 2005

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