 Legal Alpha is generated by a pro-active but selective cooperation between the internal legal/portfolio management department and its external legal advisor of institutional investors or asset managers.These need to responsibly, and in the best interest of clients, consider all legal and economic options of enforcing claims attached to any assets managed.Hence, legal and economic positions must be analyzed together and enforcement/compensation option must be selectively used in combination with the appropriate jurisdiction and methods for the pursuit and recovery of losses in situations involving securities fraud, misrepresentation or other unforeseen and uncontrollable events causing losses in a portfolio investment due to the fault of an issuer.