[hxta98596]

This sort of exists. It's not evil or secret though (funds can't make the large $ amount sized trades they need to do and keep it secret). Also while some funds do employ a type of 'regulatory risk arbitrage' it's usually part of a larger strategy, e.g. event-driven funds, which are slightly more sophisticated and a few miles ahead of what Tom Clancy could come up with. For example lobbyists and legal data would be relevant to the analysis as they may be forward indicators. 'Truth can be stranger than fiction'...

[stcredzero]

This sort of exists.

Yes. No surprise there.

It's not evil or secret though

Through legally obtained aggregate data, you can be pretty sure that some evil is going on in the observed population. Then you can use the same sort of data to also profit off of that evil activity. It's an "evil fund" in the same way that you can have a gold industry ETF. The ETF itself doesn't buy, sell, produce, or own gold. However, such a gold industry ETF can still piggyback off of its profits. More precisely, it would be a "surreptitious legislative evil" fund.

event-driven funds, which are slightly more sophisticated and a few miles ahead of what Tom Clancy could come up with.

I'm not an investment guru. This is just what I could come up with off the top of my head.

[hxta98596]

Gotcha. Well the funds are not illegal or secret, let's put it that way :)

I do think the world of Wall St. and Washington would make a crazy interesting movie. Maybe the "evil" funds buy stakes in various companies then lobby greedy politicians to make new laws aimed at giving advantages and profits to only those specific companies. At the same time these Dr. Evil types employ a revolving door strategy where they send trusted fund employees to work in government and they hire retiring politicians for huge salaries to make up the years they were underpaid "doing public service". Just an idea.