Greenhaven Road Capital, an investment management company, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the Fund returned 8% net, bringing YTD net returns to over 25%. The firm believes its portfolio is a little stronger with each passing day despite the challenges. 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 second quarter 2023 investor letter. Based in Saint Peter Port, Guernsey, Burford Capital Limited (NYSE:BUR) is legal finance products and services provider. On August 11, 2023, Burford Capital Limited (NYSE:BUR) stock closed at $13.93 per share. One-month return of Burford Capital Limited (NYSE:BUR) was 16.57%, and its shares gained 32.29% of their value over the last 52 weeks. Burford Capital Limited (NYSE:BUR) has a market capitalization of $3.05 billion.
Greenhaven Road Capital made the following comment about Burford Capital Limited (NYSE:BUR) in its second quarter 2023 investor letter:
“Burford Capital Limited (NYSE:BUR) is an asset manager that focuses on litigation finance (funding lawsuits). Their historic investments have generated IRR’s approaching 30%. If those rates persist, profits simply grow with the passage of time and the power of compounding. Burford has a case referred to as YPF that could easily be worth more than the current market capitalization of the entire company. Over the next year, there should be greater clarity on the size of the award and the event path for ultimate collection – see our Q1 letter for more detailed discussion in the appendix. Over the next couple of years, it is likely that Burford will be included in passive indexes such as the Russell 2000, bringing a wave of forced buyers. The earnings for Burford will be lumpy as the timing and sizes of litigation awards are difficult to predict, but this is the scaled player in a niche industry with limited competition and a history of attractive returns that are not correlated to the overall economy. Every day we are one day closer to some or all of YPF, and the company continues to compound balance sheet capital at high rates. Again, time is our friend. This is the scaled player in litigation finance and the business has gotten stronger and stronger over the past five years and, in my opinion, the value of pending cases and their earnings power are not reflected in the share price – yet.”
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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, 19 hedge fund portfolios held Burford Capital Limited (NYSE:BUR) at the end of first quarter which was 12 in the previous quarter.
We discussed Burford Capital Limited (NYSE:BUR) in another article and shared Greenhaven Road Capital’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.