BUR - Jackson Peak Capital - Burford Capital: Valuation Attractive  Even Excluding The Argentina/YPF Claim

2024-02-11 11:40:00 ET

Summary

• Burford won a ~$6.2 billion (and counting given interest accrual; ~2x its current market cap) claim of damages against the Republic of Argentina.
• We believe Burford’s broad portfolio of cases is underappreciated today, and they will continue to put points on the board.
• We view Burford’s valuation today as attractive even if you exclude the Argentina/YPF claim, creating an asymmetric return profile given our assessment of the Argentina situation.

The following segment was excerpted from this fund letter.

Burford Capital ( BUR )

Burford Capital is a ~$3.2 billion market cap litigation finance company. We were long Burford for much of 2023, and we increased the size of the position in Q4. Burford is the world’s largest litigation finance firm and has a history of realizing 30% IRRs on its investments. Burford’s core business funds the expenses related to a claim in exchange for a share of the ultimate damages....

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