It was nice while it lasted. But it’s probably safe to say the high-profile dispute between U.K.-listed Burford Capital and U.S. investment firm Muddy Waters Research during the past week has tempered the hype that the litigation funding market has enjoyed in recent years.
Burford has been the poster child of the industry’s growth, with its share price rising more than 700% since the start of 2016 up until last month, where it was trading at about 1600p. But following the Muddy Waters report questioning the company’s finances, its shares are now levelling out at about half of that.
