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