Artem Fokin's Bull Case on Burford Capital, Debunking the Muddy Waters Report

Today, Artem Fokin of Caro-Kann Capital issued a forceful rebuttal against Muddy Waters' much-publicized attack on Burford Capital (BUR:LN), the UK corporate litigation funder.


The stock dove almost 20% when rumors of the Muddy Waters campaign began circulating before August 7. For the last month, BUR:LN has been trading at less than 50% its value despite the firm's official response to allegations, which did not do much to address Muddy Waters' claims but only counter-accuse them of market manipulation.


In his rebuttal, Fokin attempts to set the record straight and debunk Carson Block's most salient points against Burford such as the firm's capital solvency and reporting methods, specifically in the case of Napo Pharmaceuticals.

"Muddy Waters asserted that Burford inappropriately recorded Napo as concluded and reported high ROIC on the matter presumably in its attempt to impress investors with its track record...[in fact] Burford did so because it was not certain about the collectability of its entitlement. This shows thoughtfulness and conservatism as opposed to aggressiveness."

Early in his career, Fokin was an attorney with Greenberg Traurig LLP. His legal background and deep familiarity with Burford make Fokin uniquely positioned to opine on allegations levered by Block and his team at Muddy Waters. SumZero is pleased to offer exclusive access to Caro-Kann's Executive Summary below as an introduction to the full 68-page rebuttal.


Please reach out to avery@sumzero.com if interested in a warm introduction to Fokin & his team or comment directly on his BUR write-up to join the conversation.

Download the Executive Summary Here