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  "documentTitle": "Burford Capital Ltd. (BUR LN)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-08-07 00:00:00",
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  "notes": "Includes a step-by-step reconciliation of 'real' invested capital.",
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      "text": "After deconsolidating what isn't BUR's, unbooking their non-cash realizations, and undoing the reliance on a select four cases, BUR H1 2019 cash ROICs actually turn negative.",
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      "text": "1. Start with H1 2019 Investments of $1,768.4 million. 2. Subtract third party interests of $202.2 million. The balance is $1,566.3 million. 3. Reduce by the amount of Fair Value Gains, which is 43.8% of the total. 4. The result is $880.3 million.",
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      "text": "ROIC: 16%",
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      "text": "After deconsolidating what isn't BUR's, unbooking their non-cash realizations, and undoing the reliance on a select four cases, BUR H1 2019 cash ROICs actually turn negative. Under these conditions, ROIC since 2012 also drops to 16%.",
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      "text": "BUR's operating expenses, financing costs, debt, and funding commitments, in our view, put it at high risk of a liquidity crunch. BUR is already arguably insolvent. There are two components to this analysis: the size of BUR's “real” invested capital and BUR's non-investment costs.",
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      "text": "105 BUR H1 2019 Interim Report, p. 33. 106 BUR H1 2019 Interim Report, p. 33. 107 We derive 43.8% by adding H1 2019 Fair Value Movements of $152.9 million to the Fair Value Gains balance of $621 million (39% of $1.6 billion).",
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      "text": "Case 178822 and 181486 adjustments for Balance Sheet Profit and Capital.",
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      "text": "When Excluding Four Cases, Off-Balance-Sheet Returns, and Non-Cash Settlements, Burford's ROIC Falls to 16%",
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      "text": "We Believe BUR is at High Risk of Financial Stress",
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      "text": "H1 2019 Non-Cash Settlements Effect on Returns",
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