One of the most exotic AIF strategies is Litigation Finance. These funds pay the legal costs for commercial lawsuits (e.g., patent disputes) in exchange for a share of the settlement if the case is won.
The returns are completely uncorrelated to the stock market or interest ratesÑthey depend solely on the legal outcome. While high risk and legally complex, it offers a unique “alpha” source for investors looking for true non-market risks.
