The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

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.


Richard Fields, Juridica

"If you are involved in major litigation but earnings are dropping and there is pressure on cashflow, funds like ours can fill the financing gap"

Richard Fields, Juridica

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 facing liquidity constraints. In intellectual property there are more players," says Richard Fields, chief executive of Juridica. Investments might include cases that involve shareholder, antitrust, and contract disputes. Juridica provides capital to companies or lawyers that might require finance to continue a case but more often are seeking to transfer a proportion of the risk of litigation in exchange for a percentage of the possible proceeds of the litigation.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree