Burford Capital Share Discussion Threads

[edmondj] 12/8/2019 16:51

One for you Mad Foetus, to weigh up:

MuddyWatersResearch
@muddywatersre

The accusation by $BUR of “manipulation” by HFT-type trading has zero to do with MW. We have absolutely no trading capability to do that. Such accusation is preposterous. If BUR wants to bring that to court, we will smack BUR and any supposed expert down hard.

*

The common law of England and Wales has a general prohibition against physical contact and battery. The Crown Prosecution Service charging standard for Offences against the person states "A battery is committed when a person intentionally and recklessly applies unlawful force to another."

[trident5] 12/8/2019 16:42

Presumably Peterson was not being priced relative to any CDS curve, but with some reference to the price they were selling interests in the case.

One likely outcome is that B. will find it a lot harder to generate sales in the secondary market after this - perhaps we'll get an update.

[chucko1] 12/8/2019 16:32

Asking BUR if indeed they use the Argentina CDS curve as an input to their “model” (or at least the model used to value that particular legal matter) is perhaps the most pertinent single question that one might ask. Far more important even than corporate governance and other random stuff chucked up in the air by MW. It would be highly indicative of the degree of financial naus and experience they have at their disposal, and their MTM model certainly would require it. That is the part that so far, is taken entirely on faith.

FWIW, the fact that MW nor anyone else focused on model matters significantly above all else suggest to me that they are firing randomly.

[1oughton] 12/8/2019 16:19

U really have nothing between the ears chimersIt's quite staggering. Anyway well done on your £500. Doubled your monthly pre tax eh

[galatea99] 12/8/2019 16:14

Probably nobody at all in Argentina itself would ever lend to their government for even ten years, never mind one hundred years!

[williamcooper104] 12/8/2019 16:10

Hard to see how Argentinean sov credit spreads aren't a key input in their mark

[williamcooper104] 12/8/2019 16:09

Thanks for sharing that - interesting - who ever thought lending to Argentina for 100 years was a good idea Bur could have bought swaptions on sovereign CDS to try to hedge the risk

[dijon52] 12/8/2019 16:02

https://twitter.com/Chaser521/status/1160929248833613825?s=19

[hotmark] 12/8/2019 15:59

Looking good for a blue finish

[knowing] 12/8/2019 15:59

PHD flying

[bbmsionlypostafter] 12/8/2019 15:57

He'll make it all back & more here though, won't he.

[trident5] 12/8/2019 15:56

Does that mean Burford have to update the market on its valuation of its Peterson interest ?

[mad foetus] 12/8/2019 15:54

Hmm, so a manager who has lost money over 3 years. That is some record of underachievement.

[edmondj] 12/8/2019 15:41

Barry Norris founded Argonaut in 2005 and is the CEO, CIO and lead fund manager on the Alpha, Pan European and Absolute Return funds which he manages using his distinct “earnings surprise” investment process. In over a decade of successful investing, he has established himself as a leading European equity investor managing over £1bn personally over long only and long/short equity strategies. Barry graduated from Cambridge University in 1996 with an MA in History, and in 1997 with an MPhil in International Relations. He also holds the CFA charter. Following graduation, he joined Baillie Gifford, moving to Neptune in 2002 where he launched and managed the European Opportunities Fund. Barry has managed the Argonaut European Alpha Fund and the Argonaut Pan European Fund since their launch in 2005 and the Argonaut Absolute Return Fund since inception in 2009. He is a regular contributor to the financial media, appearing frequently on Bloomberg TV and CNBC and has had opinion pieces published in the Daily Telegraph and the Financial Times.



He's at least as well qualified (CFA) as Burford's finance director! ;-)

[galatea99] 12/8/2019 15:41

William, to respond to your question about Argentina, the quote today on the 100-year bonds looks like this:

[amt] 12/8/2019 15:39

Chimers it's the person who acted on insider information that would be breaking the law not the person giving insider information.

[clocktower] 12/8/2019 15:39

I think MW`s response can be seen in the current share price and leaves nothing more to be said - BUR and the team of lawyers will have to come up with something a lot more substantive than they have to date, to prevent this going further south over the next few days and weeks imo.

[mad foetus] 12/8/2019 15:39

Edmond,Fancy telling us what Argonaut's returns have been over the last 3 years?

[edmondj] 12/8/2019 15:35

Burford should focus on addressing issues that caused e.g. one 'mainstream' fund manager to turn against a previous holding and go short:


Among the fund managers who will be celebrating today's heavy fall in the shares is Barry Norris, manager of the Argonaut Absolute Return fund.

Norris was once a backer of the company, but since March this year Burford has been among his top short positions.

In a conference call last month, Norris said Burford had become too highly valued as its efforts to diversify its business had led it into less lucrative aspects of litigation financing.

'It’s not as good a company as it was five years ago, it cannot generate the returns in the future that it did in the past because it’s too big, and it’s not doing the same thing as it was five years ago because it’s operating in areas of the market with less good returns,' he said.

'It’s not only a company that is too highly valued given its future growth opportunities but it’s a company that will have to come back and raise equity on a regular basis in order for it to have any growth aspirations at all.'