Litigation Capital Management Ltd

Collins St Value Fund continues to hold Litigation Capital Management (LIT) due to the company's strong leadership and the positive impact of its strategic move to London. Although the relocation initially raised questions among investors, the decision has proven beneficial, allowing LIT to capitalize on London’s robust alternative investment market. Patrick Maloney, the company’s founder and major shareholder, has consistently demonstrated confidence in the business by increasing his personal stake, which has bolstered investor trust. Despite a recent 25% drop in the share price caused by staffing issues, Maloney and the Chairman took action by purchasing shares, signaling their continued belief in the company. This quick recovery in share price has reaffirmed the market’s confidence in the company’s future prospects. Given the company’s track record and the commitment of its management, Collins St Value Fund remains positive on LIT’s potential for growth and value creation.

Collins St Value Fund continues to hold its investment in Litigation Capital Management Ltd, updating its investment thesis in response to the company’s latest strategic moves. With the Board collectively owning 20% of the company, Litigation Capital Management continues to demonstrate strong returns on invested capital, achieving an impressive internal rate of return of 78% on cases. While the company remains focused on identifying and funding high-quality legal cases, the Fund notes a disconnect between the company’s intrinsic value and its share price. In response, the Board has implemented an on-market buyback, providing liquidity for investors who may not fully appreciate the business while simultaneously enhancing earnings per share for remaining shareholders. Collins St Value Fund sees this strategy as a prudent approach to capital allocation, reinforcing confidence in the company’s long-term potential.

Collins St Value Fund continues to hold Litigation Capital Management Ltd (LCM) as a key part of its portfolio, recognizing the company's strong performance and unique market position. With a 25-year track record of successfully funding litigation across Australia, Europe, and South-East Asia, LCM is expanding its presence in the U.S. The business boasts an impressive 90% case win rate and a 77% annualized internal rate of return (IRR), underpinned by earnings from court-directed outcomes that remain largely unaffected by broader market conditions. A recent example of LCM's success is its $500 million victory against the Polish Government, which is expected to generate $50 million in earnings. Collins St Value Fund believes that outcomes like these will drive continued outperformance, especially as many smaller cases are nearing completion and several larger cases remain underappreciated by the market. This combination of strong historical performance and a resilient business model in uncertain times makes LCM an attractive ongoing holding for the fund.