Greenhaven Road Capital, an investment management company, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. The firm stated in its Q3 2024 letter that with a concentrated portfolio of idiosyncratic companies returns are expected to come in chunks, with progress being made and multiple multi-baggers holding potential. The expectation was paid off in Q4 with another chunk. The fund returned approximately 13% in the quarter bringing yearly returns to 27%. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
In its fourth quarter 2024 investor letter, Greenhaven Road Capital emphasized stocks such as Burford Capital Limited (NYSE:BUR). Burford Capital Limited (NYSE:BUR) offers legal finance products and services. The one-month return of Burford Capital Limited (NYSE:BUR) was -4.99%, and its shares lost 3.04% of their value over the last 52 weeks. On March 6, 2025, Burford Capital Limited (NYSE:BUR) stock closed at $13.71 per share with a market capitalization of $3.008 billion.
Greenhaven Road Capital stated the following regarding Burford Capital Limited (NYSE:BUR) in its Q4 2024 investor letter:
“Burford Capital Limited (NYSE:BUR) – Burford isn’t just “getting there” – they’re already the leader in litigation finance with a 27% historical gross IRR and losses on only 13% of cases, according to their disclosures. I have gone out of my way in past letters to highlight just how good the company has been historically at financing litigation. They rarely lose money on cases, in part because the vast majority (76%) settle. They do, however, occasionally have “monster winners” that return 10X, 50X or even 100X their initial investment.
Burford’s leadership team personally owns stock totaling 9% (>$200M) of the company and has been a net buyer of the shares. With aligned insider ownership, historically low loss rates, and tangible book value making up more than 80% of their share price, Burford is a well-capitalized and sustainable business.
In 2024, Burford was worse than “dead money” as it posted a share price decline. It is rarely easy to isolate the cause of a share price decline, but apparently investors had some consternation over the slowing pace of investments in new cases. While I have tried to focus our attention on Burford’s current and future business, I think it is time to look deeper at the YPF case…” (Click here to read the full text)
An accountant meticulously going over documents in her office, exemplifying the company’s commitment to accuracy and detail.
Burford Capital Limited (NYSE:BUR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 30 hedge fund portfolios held Burford Capital Limited (NYSE:BUR) at the end of the fourth quarter compared to 22 in the third quarter. While we acknowledge the potential of Burford Capital Limited (NYSE:BUR) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Burford Capital Limited (NYSE:BUR) and shared Focus Capital Management’s views on the company. Greenhaven Road Capital discussed the potential for growth in Burford’s stock in its Q3 2024 investor letter. In addition, please check out our hedge fund investor letters Q4 2024 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.