The Hidden Alpha: Why only 7% of hedge funds systematically capture securities litigation recoveries

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In an industry obsessed with finding an edge, a multi-billion dollar opportunity lies largely unclaimed. Just 7% of hedge funds systematically participate in securities class action recoveries, whilst a further 14% participate sporadically. Despite record settlements and straightforward economics, four in five funds leave money on the table entirely.

This research, based on extensive surveys of hedge fund managers across major markets, reveals a striking paradox: the barrier isn't awareness or economics but psychology, lack of awareness and organisational inertia.

Our report examines why an industry built on exploiting inefficiencies has left billions unclaimed and provides a practical roadmap for systematic implementation.