WSJ: Hedge Funds Investing in COVID Business-Interruption Claims

WSJ: Hedge Funds Investing in COVID Business-Interruption Claims

May 2, 2023, Claims Journal

David Goodwin’s commentary was included by Claims Journal in a piece covering a recent trend in long shot bets on COVID-19 business-interruption claims by hedge funds. As an example, Avenue Capital Group recently paid 10 cents on the dollar for a $330 million share of a claim filed by Caesars Entertainment against its insurers.

David said the value of Avenue’s investment depends on the exact wording of Caesar’s insurance policy. “As a result,” he remarked, “it is impossible to generalize, but some COVID-19 insurance claims could be quite valuable to potential investors, whereas others might not be a good investment.”