Artem Fokin, Portfolio Manager at Caro-Kann Capital LLC, returns to the podcast (for the third time) to update his thesis on Burfurd (BUR) on the heels of their big YPF summary judgement ruling against Argentina.
For more information about Caro-Kann Capital, please visit: http://caro-kann-capital.com/
Artem's first appearance on BUR: https://youtu.be/qBuH8pyc8Y0
Muddy Waters BUR case: https://www.muddywatersresearch.com/research/bur/mw-is-short/
Artem's response: http://caro-kann-capital.com/pdf/2019_09_09_Burford_Muddy_Waters_Dreams_of_Black_Cat_That_Just_Is_Not_There_by_Caro-Kann_Capital.pdf
Chapters:
[0:00] Introduction + Episode sponsor: Stream by Alphasense
[2:33] Initial thoughts on Burford on the heels of the YPF summary judgement ruling
[6:30] How winning this case validates the Burford business
[9:03] Why is Burford saying this is such a complete win against Argentina?
[16:25] Cont'd on why is Burford saying this is such a complete win against Argentina?
[21:26] Understanding the mechanics of the waterfall payments
[30:37] Largest risks to Burford now; odds Argentina wins on appeal?
[33:39] Clarifying the mechanics of an appeal
[36:48] Estimated proceeds the Burford can actually collect
[44:59] What kind of cash flow is going to come into the company?
[55:13] Burford's asset recovery business
[59:04] Argentina's options if they want to stay in the international business community
[1:01:28] Capital allocation plans Burford could do
[1:06:42] Monetizing stakes
[1:17:31] Thoughts on this SEC fair value discussion they're having
[1:22:32] Quick update on Burford's business
Today's episode is sponsored by: Stream by Alphasense
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