What “uncorrelated” means for a litigation asset.

Litigation funders often present their assets as uncorrelated with the markets. The outcome of a case depends on the evidence, the applicable law and the solvency of the defendant, whatever the stock market does. This independence has limits, however, and an investor should know them before subscribing.

What “uncorrelated” means.

Most investments in a portfolio depend partly on the same factors: interest rates, growth, market liquidity. When these factors turn, equities, bonds and real estate can fall together. Financiers call this link correlation.

The outcome of a case depends on other factors. It turns on the facts, the evidence, the applicable law, the lawyer’s work and the solvency of the losing party. A portfolio of cases therefore draws its result from a risk that differs from market risk. The word “uncorrelated” describes this difference in the source of risk.

What decorrelation does not protect against.

The risk of loss.

The outcome of a case remains uncertain. A loss can be partial or total, and no mechanism guarantees the capital invested. Decorrelation changes the source of risk without removing it.

Liquidity.

A case lasts as long as the proceedings, appeals and enforcement included, which means two to four years, sometimes longer. Hello Justice Capital 1 has a ten‑year lock‑up in its articles, and distributions are paid as cases are resolved. This investment does not suit an investor who may need the money before then.

Case‑law risk.

A reversal of case law can affect several cases at once when they rest on the same legal basis. This is the specific risk of cases handled as a series. Spreading the portfolio across disputes with different legal bases limits that risk without removing it.

Where a portfolio’s result comes from.

The result depends first on the legal strength of each case: the law, the evidence, limitation (the time limit for bringing a claim). It depends next on the defendant’s solvency, because a judgment still has to be paid. It depends finally on how the proceedings are run, from the writ to enforcement.

Case selection is therefore the first risk‑management tool. A specialised partner lawyer analyses each case’s eligibility. The review covers the characteristics of the dispute, limitation, the completeness of the documents and the reasonable chances of success. Not every case is accepted.

Listed funders publish their results. Burford Capital reports a multiple of 1.8 and an internal rate of return (IRR) of 25% on cases concluded since 2009, as at 31 March 2026. Omni Bridgeway reports a cumulative multiple of 2.4. These are third‑party figures, unrelated to the performance of Hello Justice Capital 1. We explain how to read them.

Its place in a portfolio.

Litigation assets belong among long‑term alternative investments. The amount should be sized on capital the investor can leave untouched for a long time. Hello Justice Capital 1 is offered as a private placement (article L. 411-2 of the French Monetary and Financial Code), from €100,000. Its documentation is provided once the investor’s eligibility has been checked.

Questions to ask a funder.

Knowing that an investment is uncorrelated tells you little. Other questions help compare funders.

• Who analyses each case, and against which criteria?
• How is the portfolio spread across disputes with different legal bases?
• How is case‑law risk monitored?
• Who runs the cases through to collection?
• What are the exit terms, and how are distributions paid?

Our method is described on the method page. The fund documentation is provided after the eligibility check, from the investors page.