Silver Beech Capital, a value-oriented investment management firm, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 11.6% through the second quarter year-to-date 2024 compared to a 15.3% return for the S&P 500 and 1.7% for the Russell 2000 index. Since inception, the annual compounded return of the fund is 22.5% (net of fees) equating to 10.1% annualized outperformance over the S&P 500. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Silver Beech Capital highlighted stocks like Burford Capital Limited (NYSE:BUR), in the second quarter 2024 investor letter. Burford Capital Limited (NYSE:BUR) offers legal finance products and services. The one-month return of Burford Capital Limited (NYSE:BUR) was -9.38%, and its shares lost 7.22% of their value over the last 52 weeks. On August 13, 2024, Burford Capital Limited (NYSE:BUR) stock closed at $12.85 per share with a market capitalization of $2.819 billion.
Silver Beech Capital stated the following regarding Burford Capital Limited (NYSE:BUR) in its Q2 2024 investor letter:
Legal finance is a niche alternative asset class that typically involves an investor funding expenses associated with a legal claim (litigation or arbitration) in exchange for a portion of any ultimate award (settlement or judgement for damages). Burford Capital Limited (NYSE:BUR) (“Burford”) is a leading global legal finance company dual listed on NYSE and LSE with over fifty lawyer-investment professionals, a $7 billion legal finance portfolio, and experience working with every major corporate law firm to source investment opportunities. In its 15 years since inception, Burford has achieved an elite 27% gross IRR / 1.8x gross return on invested capital (“ROIC”) track record on realized investments.
Importantly, Burford funds commercial litigation, and does not fund consumer litigation. Consumer litigation, such as personal injury, usually involves inexperienced consumers and attracts more scrutiny from politicians, regulators, and consumer protection law…” (Click here to read the full text)
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Burford Capital Limited (NYSE:BUR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Burford Capital Limited (NYSE:BUR) at the end of the first quarter which was 30 in the previous 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 Alphyn Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.