Burford’s 2019 financials use reclassification, redefinition to inflate cash receipts, operating profit, and to otherwise present a misleading picture of the business. Cutting through the new bullshit, we adjust Burford’s cash receipts to show a YoY decline of -11.8%. We also adjust reported 2019 op… more
Burford’s abysmal second-half performance speaks to the company’s exaggerated marks, which are married to a flawed business model. Second half net realized gains were paltry, despite Burford seemingly having strong incentive to prove that it can monetize the investments on its ever-expanding balance… more
Burford’s presentation on fair value accounting fails to address the key issues. This is typical Burford speak – to write so much, and yet say so little. The little substance there is supports our thesis about Burford’s valuation abuse. At the end of the day, as we have repeatedly stated, Burford… more
No. Don’t be silly. We stated that beginning with BUR’s 2013 Annual Report, BUR egregiously manipulated its ROIC and IRR on a $7.4 million investment by categorizing Napo as a win with a significant return when it should have been a loss. BUR responded “The claim is simply false”. BUR then elabor… more
Muddy Waters Capital LLC remains short Burford Capital Ltd. Third party behavioral analysis strongly indicates that Burford’s management was deceptive in their written and verbal responses to our initial report. Muddy Waters engaged Qverity to analyze management’s statements in the August 8, 2019… more
Leave it to former trial lawyers to talk so much, and yet say so little. BUR’s written response and numbing two-hour call did nothing to dispel our view that BUR a) aggressively marks its cases up to generate non-cash profits, b) manipulates its (non-IFRS) ROIC and IRR metrics in order to justify i… more
We are short BUR. For years, it was the ultimate “trust me” stock. Thanks to a light disclosure regime, the esoteric nature of its business, and unethical behavior by its largest shareholder, Invesco, it turned Enron-esque mark-to-model accounting into the biggest stock promotion on the AIM. This… more