Hedge Funds Betting On Patent Lawsuits With Courtroom Spies
from the you-need-that-edge dept
For many in the hedge fund world, the game is based around having some sort of edge -- that single piece of information that no one else has (yet) that allows the hedge fund to make the trade that will pay off big time when the information spreads. Apparently, a number of hedge funds are looking for that edge as it relates to patent trolling cases. There are so many patent troll cases these days, and they often impact large, public companies, that knowing the results before the news hits the wires can open up the opportunity to make an awful lot of money. That's why hedge funds have started sending spies into the court rooms of prominent patent troll cases (via Paul Kedrosky). Apparently there have been several cases where as soon as the verdict is read, a bunch of folks run out of the courtroom (you're not allowed to use mobile phones in the court room). They're not reporters, but patent litigators hired by the hedge funds to report back in within seconds of the verdict coming down. That gives the hedge funds enough time to make their trades before the reporters write their stories and the news hits the wires. We've talked about investors betting on patent trolls before, but this takes the practice to a new level.