Muddy Waters’ Latest Target Is Missing a Big Point
Carson Block has gone too far with some of his attacks on Burford, but the company should do more to address corporate governance concerns.
Taking aim.
Photographer: /AFPFor a company whose senior management team is staffed largely by hard-headed litigators, Burford Capital Ltd. is doing a lousy job of fighting off an attack by short-seller Carson Block.
In a call with investors last week, Burford’s management declared confidently that its rebuttal of a highly critical report from Block’s Muddy Waters Research had “knocked it on the head.” Yet the shares of the London-listed company – which provides funding for corporate litigation – remain more than 40% below where they were when rumors of the impending short-campaign first emerged last week. This suggests Buford still hasn’t done enough to alleviate investor concerns, particularly regarding the company’s byzantine governance.