Focus Capital Management, an investment management company, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund performed poorly in the fourth quarter compared to the broader market, returning –4.7% compared to the S&P 500’s return of +2.8%. This ends a disastrous year for the Fund, which returned –27.6% for the full year, compared to the S&P 500’s return of +25.5% over the same time period. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Focus Capital Management emphasized stocks such as Burford Capital Limited (NYSE:BUR). Burford Capital Limited (NYSE:BUR) offers legal finance products and services. The one-month return of Burford Capital Limited (NYSE:BUR) was 16.81%, and its shares gained 0.40% of their value over the last 52 weeks. On February 13, 2025, Burford Capital Limited (NYSE:BUR) stock closed at $15.22 per share with a market capitalization of $3.34 billion.

Focus Capital Management stated the following regarding Burford Capital Limited (NYSE:BUR) in its Q4 2024 investor letter:

"Burford Capital Limited (NYSE:BUR) is a global litigation finance company, which in essence means that they fund and otherwise monetize commercial lawsuits in exchange for a portion of the proceeds received. Burford trades both on AIM (the junior London stock exchange) in Great British Pounds (GBP) and on the New York Stock Exchange in US Dollars (USD).

2024 — Continued Growth: Business continues to be conducted as usual, with continued high levels of commitments and deployments and continued strong IRRs. Realizations and realized gains were up significantly for the first three quarters of 2024 vs. 2023, up 39% and 49%, respectively, hitting records for the company on top of an already strong 2023. That’s purely counting cash gains, not including any fair value adjustments. Their income from managing third-party funds, especially their Sovereign Wealth Fund arrangement, remains strong as well, in the ~$40-$50 million range for 2024... (Click here to read the full text)

An accountant meticulously going over documents in her office, exemplifying the company's commitment to accuracy and detail.

Burford Capital Limited (NYSE:BUR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Burford Capital Limited (NYSE:BUR) at the end of the third quarter which was 25 in the previous quarter. Burford Capital Limited’s (NYSE:BUR) net income in the third quarter was $136 million, resulting in $0.61 earnings per share. 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 the list of high growth international stocks to invest in. In addition, please check out our hedge fund investor letters Q3 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.