Burford Capital Ltd. (BUR) stock plummeted 5.04% in the pre-market trading session on Tuesday, despite reporting record-high cash realizations and net realized gains for the fiscal year 2024.
The legal finance firm achieved $327 million in net realized gains, marking a substantial 75% increase from the previous year. Additionally, the company reported a robust Return on Invested Capital (ROIC) of 108% for 2024, surpassing historical averages.
However, Burford Capital also disclosed unrealized losses for the year, primarily driven by discount rate volatility. This factor, coupled with ongoing uncertainties surrounding the YPF-related assets and challenges in balancing portfolio activity with new business generation, appears to have contributed to the stock's pre-market decline.
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