How Invested are your Clients in their Investments?

Doubts and behavioural biases plague even the most astute investors. Ultimately, any investment strategy that will hold the highest potential for possible return is one that remains consistently funded. If the funds are pulled… our clients won’t reap the potential benefit. It seems obvious, but it happens more than we like to discuss.

Being invested in an investment strategy requires more than just a monetary investment; it also requires an emotional and cognitive investment. In recent years we’ve found that many people exit too early, and their poor timing decimates their wealth. Sometimes it is from fear and panic when the media steers the market narrative, but often it’s from a deeper need to be connected on a personal, more meaningful level with their investments – and we don’t always know how to articulate this.

At Greenpark Platinum, we’ve created a space to help short-term investors connect with investments that are more meaningful and impactful; litigation finance.

Litigation finance is a non-correlated asset class that produces solid and absolute returns. In short, litigation finance is the financial backing of one side of a high-stakes court case in exchange for a percentage of the proceeds (if the side you’re supporting wins).

It also provides a focussed engagement of funds. We’re all confined by bounded rationality, which means we can only make decisions based on the limited knowledge that we can accumulate. According to psychologist Herbert Simon, instead of making the most efficient decision, we make the most satisfactory decision. With so many investment options available, and so many linked to market performance, investors can easily be overwhelmed with options, be distracted by news and media furore and lose focus.

Lost focus means an increased departure from connection to the investment.

Another behavioural bias that catches our clients is the need to chase trends – especially in the 12- to 36-month investment-horizon space. We all have an extraordinary ability for detecting patterns, and when we find them, we believe in their validity. But when it comes to investing, past performance is not always indicative of future performance. Sudden moves can be costly, which is why, to provide early liquidity, we constantly seek opportunities to sell our portfolios. Often, this happens as early as six to twelve months after a capital commitment.

With over 20 years of global litigation finance experience, we offer an exclusive claims portfolio investors can’t find anywhere else. Our reputation earned us access to these cases, built on a longstanding tradition of raising capital for some of the highest-profile court cases worldwide, ranging from real estate disputes to mergers and acquisitions.

We believe that our deep connection with our work will help you provide investment opportunities to your clients that help them find deeper meaning, connection – and investment – in their investments.