Litigation Capital Manag... Share Discussion Threads

[brileyloucan] 22/7/2021 11:10

Hi James,

I agree this is a key concern. I believe the expectation is that the final £35m will be committed reasonably quickly and a lot is going through at the moment. There is also probably a requirement to have a balance of exposure types so the two funds could be taking commitments in parallel.

I reached out directly to Patrick and asked (very politely) about the delay to committing the first fund , what was the reason for it and when we would expect some further movement. I fully recognised that they may be limited on what they could say.

Unfortunately I did not get a response or even acknowledgement. This was the first black mark on the company for me which is my largest position and have held for about a year.

BL

[jamessmith23] 22/7/2021 09:49

It comes from the latest update the the company provided stating they had 115 of the 150 committed, so it's not that 150 has been committed but they have only drawn 115 to fund cases, they fund hasn't been fully committed.Does anyone know why this is the case? My concern is why they are funding a second fund when they haven't had the demand to fully fund the first. They're expanding their operations which if it goes well will be big for the business, but they need the capital to be committed to do this so am looking for an explanation, without the capital the returns everyone is quoting may not materialise, at least in the time lines forecast.

[adamb1978] 21/7/2021 21:14

James

I havnet seen where you've taken your figures from but there's a difference between 'committed' and 'funded'. If you commit to a fund then you will receive capital calls at various intervals when the fund needs the capital. So its possible that its fully committed, but the cases haven't arisen as quickly as expected and therefore it hasnt been 'funded' as much as expected by now

Adam

[jamessmith23] 21/7/2021 15:40

One thing I'm a bit confused on is why the first fund hasn't been fully funded yet, I thought initially it was aiming to be 150m committed by end of Q1 this year? Has there been delays in commitments and is the 115 including the capital committed by LIT which I believe was 25%, so about 35m. Also have they started committing to the 2nd fund before being fully committed on the first?Have no issue on the lower conversion rate at all, would rather maintain higher returns on the invested capital in cases by being picky then over allocate.

[someuwin] 21/7/2021 09:01

The main takeaway from this week's presentation is this chart...



Assets Under Management up 243% (from £138m to £336m) in just two years.

...Imagine where we'll be in another couple of years!

[nigelmoat] 20/7/2021 14:19

Added today at 110p to double up on my holding here. Despite anticipating general turbulence in the markets ahead I think the present pull back is a good buying opportunity. This niche class of business has exceedingly good prospects and this is a well managed and respected business in its field. All imo/dyor.

[hpcg] 19/7/2021 09:12

A lot of price moves are summer doldrums, and with the heat this week I would suspect the marginal buyer is otherwise distracted. Some changes to global economic conditions with growth slowing in some parts of the world, which is inevitable.

[adamb1978] 19/7/2021 08:57

Agree with the long-term focus 74tom. A lot of small caps seem to have drifted lower over the last couple months - the adage about selling in may seems to have been very appropriate in small-cap land this year. As a result, I'm not so bothered about fluctuations at the moment and just taking content with companies which I own trading well, and telling myself that by end of year, for example, things should have normalised

[bigalan3] 19/7/2021 08:57

Agree with atom. Quality will win. Sadly I bought £5000 on Friday but the rest doing well.

[74tom] 19/7/2021 08:50

I've got no idea how anyone could claim this was a profit warning, however some are obsessed with trying to find negatives. Sure, they had a lower conversion rate, but this shows they retained their discipline - this is much better for the long term investment case than taking on cases for the sake of short term numbers.

The share price has been walked lower over the last couple of weeks, for reasons unknown. They dropped it down from the 130's on about £100k of volume, then when Simon Thompson upgraded his TP and significant volume arrived we closed flat. It's since drifted lower, which again doesn't make any sense.

I think an II has been selling in the background, could be a residual Miton holding or R&M taking more profits. Whatever, I'm confident that the old Benjamin Graham classic 'short term the market is a voting machine, long term it's a weighing machine' will play out here, as it has started to over the last 7 months.

[adamb1978] 19/7/2021 08:20

Market update RNS reads well enough? I saw someone on twit ter claim it was a veiled profit's warning..! The only -ve in there was the slower level of commitments...however for the type of business which this is and way its valued, I dont see that as overly important

Price off 5p though...

[trotterstrading] 19/7/2021 08:19

Outstanding ROIC and IRR numbers! Took a few more, rude not to

[someuwin] 19/7/2021 07:39

July 2021 Market Update presentation

[johnwig] 14/7/2021 08:45

I promised to let people know about any change in my holding. Yesterday a very small further nibble of 5k. @116.975p at the very close! Irresistible! I thought yesterday's price actions were very weird...

[74tom] 14/7/2021 08:30

Interesting news re. the $300m fund opening as soon as the investment committee signs off the final $150m fund investments... I think the upgrade to 150p is very cautious, he states are on on a forward PE of 10 for the current year, but at 150p we only rise to a PE of 13ish. Hardly expensive!

[someuwin] 14/7/2021 08:14

Excellent new article. Simon Thompson increases LIT target again. From 140p to 150p

Bargain shares: Backing litigation funding winners

A litigation funding company has announced three major litigation finance agreements in the past seven weeks and is set to launch a follow-on third-party fund...

[bigalan3] 14/7/2021 08:07

Thank you.

[irishmatt] 14/7/2021 08:06

IC article I think

[bigalan3] 14/7/2021 08:04

A sudden rush of interest! Any reason?

[someuwin] 13/7/2021 20:22

150p next target.


free stock charts from uk.advfn.com

[someuwin] 12/7/2021 16:19

I note that last year we got a trading update for year end June 30th on July 10th. If they provide a similar update this year then we might get an RNS soon.

[1tcm1] 12/7/2021 10:10

I want to buy more of these but the spread is still a bit silly!

[transhoneyqueens] 09/7/2021 18:48

Get well soon funky.