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  "documentTitle": "Burford Capital Ltd. (BUR LN)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-08-07 00:00:00",
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  "notes": "The slide uses a 'reality vs appearance' framing to suggest accounting manipulation via period-end transactions.",
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      "text": "In a vacuum, such selling behavior would be innocuous. However, viewed in the context of BUR's other misleading behavior, this pattern suggests a means by which the company boosts reported income.",
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      "text": "Implied Petersen Claim Value: $2.0 billion",
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      "text": "At the most recent sale price, the Petersen claim's valuation approaches even optimistic estimates of an eventual award amount. BUR, however, stands to realize only approximately $600 million after deducting expenses:",
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      "text": "Given the several ways in which BUR deceives regarding the Petersen specifics, we would not be surprised to see that the company has, in fact, marked Petersen close to its current sale value. Taking Burford's balance sheet capital at cost, we see that even assuming a generous markup of the portfolio in each period since 2016, Petersen is likely marked very close to its latest sale value. First, we compute BUR's balance sheet capital at cost:",
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      "kind": "paragraph",
      "text": "Moreover, BUR has a habit of trading claims around period ends. On December 30, 2016, for example, BUR sold a very small portion of the Petersen claim. This act, consummated the day before year-end, allowed Burford to take significant fair value markups on the asset. Similarly, BUR reported Petersen sales less than three weeks before the end of the half-year 2017 period and under a week before the conclusion of H1 2019. In a vacuum, such selling behavior would be innocuous. However, viewed in the context of BUR's other misleading behavior, this pattern suggests a means by which the company boosts reported income.",
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      "kind": "source-note",
      "text": "96-99: Footnotes regarding Burford Capital newsroom and investment balance calculations.",
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      "text": "Sale Price: $100 million; % of Original Entitlement Sold: 10%; BUR's Stated Claim Value: $1.0 billion; BUR Entitlement Headline % of Petersen Proceeds: 70%; Implied Petersen Claim Value: $1.4 billion; BUR Entitlement Effective Portion of Petersen Claim: 50%; Implied Petersen Claim Value: $2.0 billion",
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      "text": "Burford's Net Proceeds From a Petersen Award at the Most Recent Sale Price: Award $2.0 billion; Gross Proceeds of the BUR Entitlement $1.4 billion; BUR Entitlement Proceeds Net of Legal Fees and Costs $1.0 billion; BUR's Remaining % of the Original Entitlement 61.25%; BUR's Net Proceeds $612.5 million",
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      "kind": "title",
      "text": "Appearance Versus Reality: Burford's 1H 2019 Petersen Stake Sale",
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