TY - JOUR T1 - Litigation Finance Investing: Alternative Investment Returns in the Presence of Information Asymmetry JF - The Journal of Alternative Investments DO - 10.3905/jai.2022.1.155 SP - jai.2022.1.155 AU - Thomas Healey AU - Michael B. McDonald AU - Thea S. Haley Y1 - 2022/02/03 UR - https://pm-research.com/content/early/2022/02/03/jai.2022.1.155.abstract N2 - Litigation finance is a rapidly growing niche asset class focused on debt and equity investments in litigation claims and law firms. We find that in-sample returns in the space have been in excess of 20% annually, with limited correlation to other investment areas. This apparent excess return may be due to information asymmetry and barriers to entry in the space. Our findings highlight the opportunities and risks for investors in this nascent asset class, and suggest the excess returns are due in part to limits to the speed with which efficient markets take hold. ER -