{
  "docId": "019dd923-622c-750b-8b96-e102d92b73f2",
  "docSlug": "e03b9adf861d",
  "documentTitle": "Burford Capital Ltd. (BUR LN)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-08-07 00:00:00",
  "orientation": "portrait",
  "aspectRatio": 0.77272725,
  "pageNumber": 12,
  "pageCount": 25,
  "prevPage": 11,
  "nextPage": 13,
  "slideType": "appendix_disclosure",
  "function": "expose_contradiction",
  "density": "dense",
  "nDataPoints": 12,
  "notes": "This page is part of a research note criticizing Burford Capital's accounting practices, specifically focusing on the Akhmedova divorce case.",
  "elementsJson": [
    "paragraph",
    "footnote"
  ],
  "metadataConfidence": 0.9,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b96-e102d92b73f2/12",
  "deckHref": "/decks/019dd923-622c-750b-8b96-e102d92b73f2",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b96-e102d92b73f2.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b96-e102d92b73f2#slide-12",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "BUR selectively sets the denominator in its returns calculations, allowing it to overstate IRRs and ROICs by understating historical expenses or ignoring future funding needs.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-5370-75b3-9c68-7363ddc9dec8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "ROIC: 59%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-5370-75b3-9c68-76fc71dd0861",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.78,
        "x": 0.11,
        "y": 0.43
      },
      "kind": "paragraph",
      "text": "In 2018, BUR financed oligarch divorcee Tatiana Akhmedova... BUR's lump sum payment to her of at least $18 million has been useful, helping defray her living expenses.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2f7c251a-9e4f-4aa0-91c2-99a79c6a0089",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.07,
        "w": 0.78,
        "x": 0.11,
        "y": 0.57
      },
      "kind": "paragraph",
      "text": "ROIC and IRR seem absurd on other fronts. This divorce is highly complex... BUR has to continue to finance the defendant as she tries to monetize the award judgment.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8a8b750a-dcea-4dcc-a19b-b04bdbf51a62",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.78,
        "x": 0.11,
        "y": 0.35
      },
      "kind": "paragraph",
      "text": "BUR selectively sets the denominator in its returns calculations, allowing it to overstate IRRs and ROICs by understating historical expenses or ignoring future funding needs.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a65e1287-5b50-4aa0-b8ad-c0c93be50c97",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.78,
        "x": 0.11,
        "y": 0.5
      },
      "kind": "paragraph",
      "text": "At year-end, BUR recorded $5.2 million of partial recoveries in this case. However, these recoveries came not against the $18.0 million of deployed investments, but against $3.5 million.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a69f5598-c5a8-49cd-9ef0-8d736cdb3dd6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.78,
        "x": 0.11,
        "y": 0.65
      },
      "kind": "paragraph",
      "text": "These valuation choices are especially important in light of continued adverse developments in the case. A $436 million yacht... was impounded... but it was released... Akhmedov has filed suit in Dubai seeking $85 million in damages.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d7fe5417-d18a-43a1-872d-db92ba4f6605",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.78,
        "x": 0.11,
        "y": 0.79
      },
      "kind": "source-note",
      "text": "Footnotes 53-58 detailing case data and news sources.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b1d7c114-f733-450c-9ae2-0ed984679b47",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.78,
        "x": 0.11,
        "y": 0.31
      },
      "kind": "title",
      "text": "#4 Choosing its Own cost Denominator When the Total Cost is Much Greater",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "63f5f6fa-338b-4315-b858-87b35a0ba352",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "b7b5bc5a-b439-4fa6-bf6f-f3f61ad43de2",
      "evidence": "The text explicitly claims BUR 'manipulated its ROICs and IRRs' and 'selectively sets the denominator' to overstate returns.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 20,
      "from": 6,
      "beatId": "68a78c2c-eb1d-4851-9faf-10a83c62ce27",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Agitate",
      "beatSlug": "problem-agitate-solution-agitate-make-it-worse",
      "evidence": "The report details various issues with Burford Capital's accounting practices and financial performance",
      "position": 1,
      "confidence": 0.7,
      "parentBeatName": "Development",
      "parentBeatSlug": "development"
    }
  ],
  "loops": [
    {
      "to": 25,
      "from": 2,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "fdbdba0d-04cf-4421-aa3c-a85fc4c5ab81",
      "evidence": "The report emphasizes the potential consequences of Burford Capital's financial stress and liquidity crunch",
      "position": 0,
      "objective": "Highlight the risks of not taking action",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}