janebolacha
24 Jul 2017
I have found some info on an Argentine site which refers to the way that Burford is remunerated. It is in Spanish (I am a translator) and I won't translate the article but you can use Google Translate, should you wish to do so. This para states that Burford would be entitled to four times their investment, then 40% of the first $100m (I assume they are interpreting this as meaning the first $100m after the $52m), then 30% of the balance.On an award of $324m, this would work out at $52m (ie. 4 x $13m) plus $40m plus ( 30% of ($324 - 52 - 100) ), that is $52m plus $40m plus $51.6m, a total of $143.6m, which is about the figure Burford are quoting."El negocio de Burford ha sido brutal, con una plusvalía del orden del 1000%, ya que solamente ha gastado 13 millones. El acuerdo al que llegaron los dueños de Marsans con estos buitres, al que luego se adhirió la administración concursal de Air Comet, establecía que cobrarían una cantidad fija del orden de 4 veces el dinero que hubieran gastado hasta el fallo del CIADI, más unos porcentajes escalonados, según la indemnización conseguida, un 40% de los primeros 100 millones, y el 30% para el resto hasta 500 millones."[link] if this is the model of reward that Burford are using in their contracts, it's very clever, their costs get fully covered first and then there's a tremendous incentive to push hard for a great chunk out of award beyond this.(PS: I have no idea where the site got this info. A leak from inside one of the Argentine parties, perhaps?).
peddlar
24 Jul 2017
Re: Win some, lose some! whoops,I did not mean to press sell.Fat finger syndrome.sorry.
peddlar
24 Jul 2017
Re: Win some, lose some! 24 July 2017 BURFORD CAPITAL REPORTS FAVOURABLE INVESTMENT RESULTthis morngs ,So they reckon this is more relevent as apposed to mastercard loss,i guess this may be a small gain.i hope.
janebolacha
23 Jul 2017
Win some, lose some! [link] Capital Limited (“Burford”
, a leading global finance and investment management firm focused on law, is pleased to announce that a favourable decision in an arbitration matter underlying one of its investments has been rendered by the arbitration tribunal.The arbitration matter is a claim by Teinver S.A. and others against Argentina in connection with Argentina’s expropriation of two airlines. The arbitration tribunal ruled yesterday evening against Argentina, requiring it to pay $324,254,807 in damages plus pre- and post-award interest which remains to be computed. Burford’s entitlement from the award is dependent on a number of other variables which are not yet known precisely but is estimated to be in the range of $140 million and is subject to an ongoing and compounding interest entitlement.As at 30 June 2017, Burford’s current investment in this matter is approximately $13 million and it is carried on the balance sheet at a fair value of approximately $30 million. Thus, this favourable result is expected to result in the recognition of substantial additional income (although not approaching Burford’s full potential entitlement above).................."This is the claim in respect of Aerolíneas Argentinas and Air Austral. The case has been very bitter with all kinds of ramifications and recriminations within Argentina itself, including seemingly dubious tactics to pressurise local lawyers acting for Burford and outrage at allegations of corruption involving former presidents Nestór and Cristina Kirchner and their relationship with parties involved in the affair.
janebolacha
22 Jul 2017
Re: Mastercard case lost. Molly,I prefer always to concentrate on the individual company, rather than on macroeconomics, in making investment decisions. I am very interested in the macro environment but really the value of the pound, as well as whatever may be going on politically, only really matter to me as far as they affect or may affect in an individual way companies that interest me. I know there are people who go 50% liquid or whatever over their whole portfolio, based on their view of the impact of say, an election or other political event. Not for me. So, for instance, I would be invested in IQE, in Burford, in Blue Prism and in other companies (I invest in very few companies, deliberately), I think more or less irrespective of the value of the pound or the state of politics at any particular time in UK, USA or elsewhere. I look for what are really companies with leading positions in bringing disruptive change and which will be virtually immune to the factors you mention. Those factors may well impact on other personal life decisions, of course, almost inevitably.Have a good weekend,Jane.
HFWizard
30 Nov 2015
Looks like Fidelity are piling on too!
HFWizard
30 Nov 2015
Slow and steady wins the race. This is my best performing stock over the last year
