{"id":4007,"date":"2006-02-21T00:00:00","date_gmt":"2006-02-21T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"hedge-funds-find-returns-in-making-small-loans","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/02\/2006\/hedge-funds-find-returns-in-making-small-loans.html","title":{"rendered":"Hedge Funds Find Returns in Making Small Loans"},"content":{"rendered":"<p>New York Times &#8211; On a summer day in 2003, Anthony DiMartino was helping pour concrete&nbsp; on a construction job in Manhattan when he tripped on a cable sticking out of the ground and fell, injuringhimself. While the operations on Mr. DiMartino&#8217;s back and knee were mostly covered by insurance, other bills piled up as a lawsuit against <a title=\"Consolidated Edison\" href=\"http:\/\/www.nytimes.com\/redirect\/marketwatch\/redirect.ctx?MW=http:\/\/custom.marketwatch.com\/custom\/nyt-com\/html-companyprofile.asp&amp;symb=ED\">Consolidated Edison<\/a>, which he says did not properlybury the cable, made its way through the courts.<\/p>\n<p>  So Mr. DiMartino recently visited a small finance company in Brooklyn; a few days later, the company, LawCash, advanced him $6,000. What Mr. DiMartino did not know was that he had another  benefactor: SageCrest, a $1 billion hedge fund in Connecticut, which has provided financing to LawCash.<\/p>\n<p>  On the surface, LawCash looks like a risky venture for SageCrest. If Mr. DiMartino receives a settlement, LawCash will get its money back, plus 30 percent interest. But if there is no settlement,  Mr. DiMartino will not pay back a dime. (Con Ed declined to comment on the litigation.)<\/p>\n<p>  Indeed, no collateral backs any of the advances LawCash makes. Lawsuits and claims can easily drag on for years, which means there can be a huge time lag before payment is received. And if there is  no settlement, there is no repayment of the original advance or interest.<\/p>\n<p>  Yet SageCrest is not the only hedge fund in this business. So why are hedge funds \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009d supposedly the sophisticated money, making bold, broad bets \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009d rushing into lending?<\/p>\n<p><a href=\"http:\/\/www.nytimes.com\/2006\/02\/21\/business\/21place.html\">Read Complete Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York Times &#8211; On a summer day in 2003, Anthony DiMartino was helping pour concrete&nbsp; on a construction job in Manhattan when he tripped on a cable sticking out of the ground and fell, injuringhimself. While the operations on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4007","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4007","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=4007"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4007\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=4007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=4007"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=4007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}