Courts and Perfect Information

Apparently hedge fund managers are hiring patent attorneys to observe patent trials and Markman hearings so that the funds can move quickly to trade based on the ruling. The IP Law & Business article reports that hedge funds try to keep the presence of their agents secret, but because courts don’t allow communication devices in court, once the ruling is made the agents quickly leave to contact the funds. From the story:

“I hear these stories of Markman hearings; the minute the ruling comes down, 15 guys jump up and run out of the room,” says Ron Laurie, of Inflexion Point Strategy, an IP investment bank. “These guys are texting the hedge fund, so they can short the stock.” By the time the market-moving information hits financial news services like Bloomberg, the investors get to take their gains.

Perhaps more interesting is the article’s point that some investors follow the trial day by day and buy stock as they evaluate the way the trial is going. I’m not sure that taking a large position based on predicting a trial’s outcome is wise, but then bayan escort again these folks live for high risk strategies. Plus it may be that patent trials are a antalya escort bit easier to predict than other trials. I have not really thought about that one, but if readers have experience regarding predicting patent trials please share.

One thought on “Courts and Perfect Information

  1. Fascinating! Well, I look forward to the Wall Street Journal’s rationalization of *this* practice as maximizing efficiency. I wonder if courts will end up having to lottery seats…or put limits on texting….

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