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  "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": "This is a research note page focusing on accounting/valuation discrepancies in a litigation finance firm.",
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      "text": "In our view, BUR investors are effectively paying a roughly 9% fund expense ratio. We believe that return metrics excluding these expenses are misleading.",
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      "text": "operating expenses: 9%",
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      "text": "secured and unsecured debt load ahead of equity. As a result, stockholders are likely to recover little to nothing from previously announced suits. BUR has not adjusted down RCR’s carrying value to account for the likely restructuring.",
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      "text": "In 2015, BUR agreed to finance a portfolio of law firm Hausfeld LLP’s cases. Since then, BUR has committed $44.3 million and deployed $34.4 million for these. However, several negative developments have come down in the Hausfeld cases.",
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      "text": "As we discuss infra, BUR’s reported operating expenses are approximately 9% of its adjusted capital base. In other words, approximately 9% of returns generated by the capital base we believe is available to fund returns goes to funding the business.",
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      "text": "Footnotes 70-75 detailing sources for RCR and Hausfeld claims.",
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      "text": "#7 Failing to Deduct Various Costs against Recoveries, Including the Very Operating Expenses Associated with the Investments Themselves",
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