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Innovation in Legal Finance (Part 1 of 2): What is “Event Driven Litigation Centric” Investing & Why Should Investors Care?

By John Freund |

The following is a contributed piece by Ed Truant, founder of Slingshot Capital,

Executive Summary

  • EDLC Investing is a relatively new, niche market requiring highly specialized skills
  • EDLC has many advantages over CLF investing, although it is not a directly comparable investment strategy due to its application to publicly traded markets
  • EDLC investing requires investors to have more of a buy/hold mentality than a ‘trader’ mentality due to the ‘fundamental’ risk being assumed
  • Despite EDLC ‘events’ being non-correlated, the publicly listed security aspects of their portfolios add some level of correlation which will impact fund performance, both positively and negatively
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