Dispute the patent, short the stock: Empirical analysis of a new hedge fund strategy

Rabea Kruppert

International Review of Law and Economics, 2017, vol. 50, issue C, 25-35

Abstract: A new US patent legislation, called the America Invents Act, became effective in 2011. The reform strived toward facilitating the patent system. But soon it was also blamed for facilitating immoral third party profits. Urges for revision of the America Invents Act became even louder since hedge fund manager Kyle Bass had publicly outlined his questionable investment strategy: he challenges the validity of important drug patents, while shorting the owner's shares in order to eventually cash out on negative stock movements.

Keywords: Event-study; Stock price effects; Patent oppositions; IPR; AIA; PTAB (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:irlaec:v:50:y:2017:i:c:p:25-35

DOI: 10.1016/j.irle.2017.04.003

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