Alternative Investment

Is Burford Capital Limited (BUR) an Attractive Stock?

Alphyn Capital Management, an investment management firm, released its third-quarter 2022 investor letter. The same can be downloaded here. In the third quarter, the fund returned -10.95% net compared to -4.88% return for the S&P 500 Index. Year-to-date the fund returned -34.2% compared to -23.9% return for the S&P500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Alphyn Capital discussed stocks like Burford Capital Limited (NYSE:BUR) in the Q3 2022 investor letter. Based in Saint Peter Port, Guernsey, Burford Capital Limited (NYSE:BUR) is legal finance products and services provider. On October 21, 2022, Burford Capital Limited (NYSE:BUR) stock closed at $7.62 per share. One-month return of Burford Capital Limited (NYSE:BUR) was 5.25% and its shares lost 31.41% of their value over the last 52 weeks. Burford Capital Limited (NYSE:BUR) has a market capitalization of $1.669 billion.

Alphyn Capital made the following comment about Burford Capital Limited (NYSE:BUR) in its Q3 2022 investor letter:

“Realizations at Burford Capital Limited (NYSE:BUR) slowed in the first half, as backlogs in the court system due to prior Covid shutdowns delayed approximately 43% of Burford’s cases. For example, the period from filing to trial presently averages 55 months in Brooklyn, New York,6 and the courts further prioritize criminal over commercial matters. However, while near-term case conclusions and cash flows slowed, the company remains on a solid financial footing with approximately $430m available liquidity.

Encouragingly, Burford remains attractive to sophisticated institutional alternative investors. In the first half, Burford raised over $1 billion group-wide in new capital. Including $360 million of long-term debt, a $360 million fund for its Advantage Fund, which targets returns in the 12-20% IRR and pays Burford better than the typical 2&20 fees, and a $350 million fund for a post-settlement strategy.

The non-correlated timing of Burford’s returns, although lumpy, is one of the company’s attractions. Burford deployed approx. $400m into new cases, which should translate into robust income down the line.”

Investments, Finance

Investments, Finance

Investments, Finance

Burford Capital Limited (NYSE:BUR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Burford Capital Limited (NYSE:BUR) at the end of the second quarter which was 12 in the previous quarter.

We discussed Burford Capital Limited (NYSE:BUR) in another article and shared the best stocks to buy according to Angela Aldrich’s Bayberry Capital Partners. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.


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Disclosure: None. This article is originally published at Insider Monkey.

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