Burford Capital Share Discussion Threads

[syoun2] 13/6/2023 18:25

I agree for that exact reason

[tradertrev] 13/6/2023 18:23

djd - while I agree generally with your view about quarterly results, in the case of Burford I think it's a good thing to have 4 set-piece announcements a year. This share has tended to drift very badly in the past in the long periods between announcements. I'm hopeful that the consistently closer proximity to the next news will maintain more interest in the shares.

[djderry] 13/6/2023 17:23

Stellar results.However,I'm not a fan of quarterly results.I understand why they are required for the US listing but I think it's silly.Comparing one quarter to a previous one doesn't really tell me anything.If there is a ' quiet' quarter ( or year),similarly I won't be extrapolating it.
The other danger,in my view,is that it's taking up valuable management time which I believe is better spent running the business.

[lomax99] 13/6/2023 16:22

Seeking Alpha, earlier today:Https://seekingalpha.com/article/4611136-burford-capital-considerable-room-to-grow

[stentorian] 13/6/2023 14:04

The overwhelming majority of the funds that Burford commit to litigation cases is by way of solicitors' fees to firms who conduct the litigation. These are not Burford lawyers they are third party firms. These firms cannot afford to provide litigation funding themselves (partners like to suck out their cash of the firms they work for) therefore the clients need funding from Litigation funders like Burford. As long as the client has a good case and the firm is reputable Burford will go with the flow and pay the fees to the law firm as required subject to the litigation funding contract.

The lawyers who are employees at Burford will perform the due diligence against their criteria and have a watching brief over the Solicitors' firms who are undertaking the actual work.

The Burford lawyers are expensive as they could go back into working for firms. Remember that Burford offices are springing up all over the world...these offices need staffing with experts in local laws. It seems a lot but it is a cost of doing business - remember that bonuses will be based on success,

Newly qualified solicitors in London in the International firms can command c. £150-200k a year (that is their take home pay). These are trainees - The world has gone mad! A mate of mine in Deals Tax in PwC is charged out at £2k an HOUR.

[lazg] 13/6/2023 14:03

Can maybe one of us ask that question in the presentation?

[saltraider] 13/6/2023 13:56

You could well be right. I was a bit doubtful about my own argument, to be honest.

[planit2] 13/6/2023 13:52

I thought lawyers costs were attributed to individual cases so the majority would not affect operating expenses. I am happy to be corrected by someone more knowledgeable if they can confirm?

[saltraider] 13/6/2023 13:50

Is that necessarily the case planit2? Income is up because the courts have opened up and cases are getting concluded. That means that lawyers are in court too and costs will similarly be increasing. Doesn't timing affect both income and expenditure?

[planit2] 13/6/2023 13:25

It would be nice if their operating expenses were growing at a consistently much slower rate than income. It looks like things are out of control if this continues.

Q1 '23 80% higher than Q1 '22

£5m per month increase.

I realise the income has gone up substantially but that is more a consequence of timing so it's not likely to repeated in Q1 '24.

[three black crows] 13/6/2023 13:21

Re - RateAny suggestions on what we will re - rate to ?

[chester9] 13/6/2023 12:54

It will be in coming years. London never likes Burford. Let's see 2:30

[tnt99] 13/6/2023 12:34

Should be over 20 pounds by now???

[stentorian] 13/6/2023 12:24

Positive portfolio-wide momentum drove strong 1Q23 financial results

Significant growth in total revenues, net income and tangible book value
- Broad pick-up in portfolio activity, with capital provision income, excluding

YPF-related assets, more than doubling
to $185 million
- 464% increase in realized gains compared to 1Q22
- 41% increase in unrealized gains compared to 1Q22
- Capital provision income growth of 238% in 1Q23 compared to 1Q22 primarily driven by fair value gains from favorable summary judgment ruling in YPF-related assets
- Net income attributable to BCL shareholders up 361% compared to 1Q22, and tangible book value per ordinary share up 15% from year-end 2022
Continued strong portfolio growth
- Group-wide2 portfolio of $6.6 billion at March 31, 2023, up 8% (30% annualized) from year-end 2022
- Steady Burford-only capital provision-direct cumulative returns (89% ROIC and 29% IRR), uncorrelated to market conditions or economic activity
Portfolio velocity accelerated
- Burford-only capital provision-direct new commitments up 130% to $101 million compared to $44 million in 1Q22
- Burford-only capital provision-direct realizations tripled to $62 million compared to $20 million in 1Q22
- Through June 9, 2023, milestone events have occurred in 40 cases, fastest pace of core portfolio activity since before the Covid-19 pandemic
- High deployments since 2017 and low realization rate potentially position portfolio for significant realized gains

Solid liquidity position
- Burford-only cash and cash equivalents and marketable securities of $183 million at March 31, 2023

[lomax99] 13/6/2023 12:19

Headlines look good, show me the money....

[extrader] 13/6/2023 10:22

Well, it would be ironic if Argentina ended up having to hypothecate YPF's cashflow in some way to satisfy BUR's claim and the US Court judgment, since YPF was the original 'casus belli'.

[stentorian] 13/6/2023 08:40

You don't have to be David Copperfield to pull off such large-scale tricks - shuffle share certificates.

[extrader] 13/6/2023 06:18

? Stealing shale oil would be quite a trick ?

[stentorian] 13/6/2023 01:11

Asset rich - because they steal then from others.

[laughton] 11/6/2023 21:43

"4) shareholder benefits - the broker snaffles them and does not pass them on to the beneficial shareholder. Just imagine how many free "beer vouchers" the stockbrokers receive on the back of all their beneficial shareholders!"

Not true of all brokers - I get my 25% NEXT discount voucher for shares held in my ISA with HL.

[jockthescot75] 11/6/2023 20:22

Thanks Gusrezo - good find.

[stentorian] 11/6/2023 19:20

Maddox, I only heard about it on the day of my post. It isn't strictly correct that nominee holdings disenfranchise investors from voting their shares - I use ii as a platform and I can vote, even as a beneficial owner, my shares, legally owned by ii. There are a couple of angles beneficial owners might suffer from:

1) some stockbrokers might 'loan' out shares that are legally and beneficially owned by someone else to short the very shareholding I beneficially own;
2) if I felt that the directors of the PLC company I owned shares in had breached their statutory duties then the courts will only accept legal owners of shares - those named on the register of members. They will not accept beneficial ownership. In a SIPP or ISA - it is impossible to move these shares to your own name and the stockbroker would be reluctant to take on board legal costs of mounting a legal action in the legal name.
3) if as a beneficial owner, if I want to actually attend the AGM, I have to go through the rigmarole of asking the broker for a letter of representation.
4) shareholder benefits - the broker snaffles them and does not pass them on to the beneficial shareholder. Just imagine how many free "beer vouchers" the stockbrokers receive on the back of all their beneficial shareholders!

[gusrezo] 11/6/2023 16:57

Andrew Walker, hedge fund manager and author of "Yet another value blog", is going to released some interviews with former Burford executives-employees thanks to his sponsorship agreement with Tegus, a site that offer paid access to paid interviews with different industries experts:
hxxps://yetanothervalueblog.substack.com/p/sponsored-deep-dive-8-burford-bur