Reviving Income: A Closer Look at Burford Capital's Q2 2020 vs. Q3 2020 13F Holdings Comparison

The global pandemic has brought about unprecedented changes in the market, driving investors and institutions to re-evaluate their strategies as they brace for impact. Amidst the uncertainties looming in the horizon, Burford Capital Investment Management LLC has managed to stay afloat and even thrive in the midst of chaos. In this blog post, we will take a closer look at Burford Capital's Q2 2020 vs. Q3 2020 13F holdings comparison, specifically focusing on the Highland Income Fund (HFRO).

When we take a closer look at the Q2 2020 vs. Q3 2020 13F holdings comparison, we can clearly see that Burford Capital has been closely monitoring the changes driven by the pandemic. In Q2 2020, the HFRO fund held 718,031 shares for a total value of $5,780,000. In comparison, in Q3 2020, they continued to hold the same amount of shares, but the value of these shares increased by 6.7% to reach $6,168,000. At first glance, this may seem like a modest change, but we need to dive deeper to understand the implications of these numbers.

One of the main drivers of the HFRO fund's success is their exposure to high yields and income-generating securities. With the pandemic taking a toll on various sectors, the HFRO fund has been able to capitalize on opportunities arising from bonds, preferred stocks, and CLOs. In Q3 2020 alone, the HFRO fund generated $0.0775 in income per share, showing that their strategy is paying off tremendously. This is a significant increase from the previous quarter's income per share of $0.06.

Another interesting aspect that we need to consider is the fund's position in the safest bonds. Burford Capital's equity in the HFRO fund accounted for 12% of the fund's total equity. However, this number has decreased to 11.2%, indicating a shift in their risk appetite. Instead of focusing solely on the safety of the bonds, they have chosen to diversify their portfolio and explore other opportunities in various sectors. This is a positive sign, indicating that they are staying on top of their game and are open to new investments.

Finally, we need to acknowledge the fact that Burford Capital has managed to defy the odds and maintain their success despite the pandemic's adverse effects. The HFRO fund has been able to generate reliable income and yield, making it a go-to for investors seeking safe but high-yielding investments. Furthermore, Burford Capital's decision to diversify their portfolio is evidence of their proactive approach in adapting to the changes driven by the pandemic. This gives investors the confidence that the company is poised for continued growth and success.

In summary, Burford Capital investment Management LLC's Q2 2020 vs. Q3 2020 13F holdings comparison indicates that the company is continuing to evolve and grow despite the challenges brought about by the pandemic. Their success with the HFRO fund is a testament to their expertise in navigating the markets, capitalizing on opportunities, and staying proactive in the face of uncertainty. Whether you are an investor or an institution, Burford Capital is a company that should be on your radar.