Shares of Burford Capital Ltd., the latest target of Muddy Waters, advanced after it said the short seller’s report was “false and misleading” and the firm’s executives increased their holdings.
The litigation-finance company’s stock closed 26% higher in London, paring some of Wednesday’s 46% decline. Chief Executive Officer Christopher Bogart and Chief Investment Officer Jonathan Molot bought an aggregate 474,390 Burford shares worth 3.15 million pounds ($3.82 million), according to a statement Thursday.
The New York-based company is also considering buying back its own shares, according to an earlier statement on Thursday.
“Short attacks such as this are a fundamental...