Artem Fokin, founder of Caro-Kann Capital, discusses the bull case for Burford (BUR). Burford is a litigation finance firm, and Artem makes a compelling case that they are both undervalued on an asset basis and have a moat giving their scale.
Caro-Kann's website: http://caro-kann-capital.com/
My thread on Burford prep: https://twitter.com/AndrewRangeley/status/1415795903751983109?s=20
Chapters
0:00 Intro
1:35 Burford Overview
6:00 Does Burford bring something other than money to the table?
13:45 Is Burford's scale a competitive advantage?
19:30 Why can't a major PE or IB launch a Burford competitor?
23:10 Are the returns to litigation financing sustainable?
37:10 How do you value Burford?
42:20 Burford's first component of value: Balance sheet investments
49:05 Buford's second value component: Asset management
54:50 Burford's third value component: YPF case
58:30 How Burford has valued YPF over the years
1:10:25 Why should YPF settle in dollars instead of pesos?
1:14:20 Discussing the bear case around the management team
1:23:45 Closing thoughts