What Makes Burford Capital Limited (BUR) an Excellent Long-Term Investment?
Greenhaven Road Capital, an investment management company, released its first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned 17% in the first quarter. Even though fears of runaway inflation waned in the quarter, investors’ concerns relating to the macroeconomic factors weren’t fully eliminated. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Greenhaven Road Capital highlighted stocks like Burford Capital Limited (NYSE:BUR) in the first quarter 2023 investor letter. Based in Saint Peter Port, Guernsey, Burford Capital Limited (NYSE:BUR) is legal finance products and services provider. On May 19, 2023, Burford Capital Limited (NYSE:BUR) stock closed at $13.52 per share. One-month return of Burford Capital Limited (NYSE:BUR) was 4.89%, and its shares gained 65.28% of their value over the last 52 weeks. Burford Capital Limited (NYSE:BUR) has a market capitalization of $2.96 billion.
Greenhaven Road Capital made the following comment about Burford Capital Limited (NYSE:BUR) in its Q1 2023 investor letter:
"Burford Capital Limited (NYSE:BUR) – This is a new holding that is discussed in greater detail at the end of the letter as an appendix. Burford finances commercial litigation. It is the largest player in the industry, has the best deal flow, has the best data, and has supplemental capabilities such as collections that give it a structural advantage. Given the sensitive nature of legal cases, there are unlikely to be auction situations, and Burford should continue to get opportunities where they are the sole bidder. Given the structure and incentives of law firms, litigation finance is likely to continue to grow. Burford has a very strong balance sheet and also manages third-party capital. They have compounded their own capital in excess of 25% for well over a decade and do not rely on the capital markets. Absent a significant change in the law or a change in human nature, I believe that Burford should have an advantaged position for a very long time."
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Burford Capital Limited (NYSE:BUR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held Burford Capital Limited (NYSE:BUR) at the end of the fourth quarter which was 12 in the previous quarter.
We discussed Burford Capital Limited (NYSE:BUR) in another article and shared Alphyn Capital Management's views on the company. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
