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  "docSlug": "e03b9adf861d",
  "documentTitle": "Burford Capital Ltd. (BUR LN)",
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  "authorName": "Carson C. Block",
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  "presentationDate": "2019-08-07 00:00:00",
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  "notes": "The slide uses specific case examples (Focus Intelligence, MagCorp) to argue that BUR's accounting practices inflate reported returns.",
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      "kind": "callout",
      "text": "Failing to allocate a portion of the purchase price to these cases results in higher ROICs and IRRs.",
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      "text": "IRR: 138%",
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      "text": "BUR calculates gains from proceeds received from cases brought in with acquired businesses, yet the calculations ignore the consideration BUR paid to acquire the firms and their portfolios.",
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      "text": "Failing to allocate a portion of the purchase price to these cases results in higher ROICs and IRRs. BUR acquired asset recovery business Focus Intelligence Limited in January 2015, and an attendant Legal Services case (Case Number 154586) is shown as generating $4.9 million on a $2.2 million investment, with an ROIC of 186% and an IRR of 138%. However, BUR excludes the $1.5 million spent to acquire Focus Intelligence in the first place.",
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      "text": "BUR's behavior in a bankruptcy case interest it acquired via the Gerchen Keller Capital acquisition, Magnesium Corporation of America, et al., (“MagCorp”), demonstrates another instance of BUR's manipulating investment costs. In 2017, pursuant to a judgement in favor of the bankruptcy estate, BUR booked an ROIC of 93% and an IRR of 75% on the investment. BUR makes no adjustment for the allocation of the $160 million purchase",
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      "text": "Footnotes 44-52 detailing sources for the claims.",
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      "kind": "title",
      "text": "#3 Misleadingly Representing an Investment that BUR Inherited through Acquisitions as Favorable IRR",
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