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  "documentTitle": "Burford Capital (BUR)",
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  "authorName": "Carson Block",
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  "presentationDate": "2019-08-13 00:00:00",
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  "notes": "The slide uses a confrontational tone to challenge management's transparency and accounting practices regarding the Petersen claim.",
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      "kind": "callout",
      "text": "We call upon BUR to disclose where Petersen is marked as of H1 2019.",
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      "text": "ROIC: 108%",
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      "kind": "paragraph",
      "text": "“attorney work product”.21 However, management did confirm that 52% of the core litigation assets consists of Fair Value Gains, which means that BUR has already recognized profits equivalent to a 108% ROIC on its investments.",
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      "text": "We believe work product is just a lame excuse for a company that falsely claims to be “transparent” (using “transparent” or “transparency” 14 times on the call) to remain opaque about items that really matter. BUR is responsible for building its models – not the attorneys litigating Petersen. We give zero credence to the notion that, particularly when there are established market prices for the Petersen claim, giving the product of BUR’s fair value model would compromise attorney work product. Moreover, based on YPF’s U.S.-listed shares trading down 30% yesterday on Argentine political news, we posit that the value of this claim is not just a legal determination – it also involves handicapping Argentine politics.",
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      "text": "Therefore, based on our suspicion that Petersen is already fairly fully marked, we believe that BUR’s imperative to grow is really about repaying the fair value gains of the past. This ties into our next point – that BUR management failed to explain why it confused investors about Net Realized Gains, which flow into the income statement, versus the irrelevant concept of Realized Gains.",
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