FYI: Oaktree Capital Group LLC (OAK), the world’s biggest distressed-debt firm, is starting its first in-house mutual funds as it joins the largest private-fund managers in raising money from individual investors.
The Los Angeles-based firm filed today with the U.S. Securities and Exchange Commission to sell shares in the Oaktree High Yield Bond Fund and the Oaktree Emerging Markets Equity Fund. The minimum initial investment in each would be $25,000, according to the filing.
Regards,
Ted
http://www.bloomberg.com/news/print/2014-09-15/oaktree-to-start-first-mutual-funds-to-woo-individuals.html
Comments
BWG
http://www.bloomberg.com/news/2014-09-02/oaktree-said-to-seek-10-billion-for-distressed-fund.html
"The world’s biggest distressed-debt investor is seeking $10 billion for a new fund with plans to sit on most of the capital until rising markets reverse course, three people with knowledge of the plans said. Oaktree plans to raise $3 billion that it can start investing immediately and $7 billion for a reserve pool to deploy when more distressed opportunities arise, said the people, who requested anonymity because the plans aren’t public."
Also:
“Aggressive extensions of credit of the sort we’re seeing today have always been a precursor to a substantial distressed-debt opportunity.”
Long-term long OAK.
Here is an analysis of the OAK ipo a couple of years ago.
http://brooklyninvestor.blogspot.ca/search?q=oaktree
Long OAK.
BWG
OAK is an MLP and does result in the delightful (not) form known as a k-1.
Scott is spot on-target. Howard Marks is a legendary investor who has specialized on distressed products. He has been hugely successful as acknowledged by the likes of Warren Buffett.
He writes with great clarity. I consider his “The Most Important Thing: Uncommon Sense for the Thoughtful Investor” book a classic. I highly recommend it. At times he seems more like Warren Buffett than Buffett himself. He concludes there are about 20 or so “Most Important Thing(s)”.
With regard to this discussion, I direct your attention to Chapter 18, The Most Important Thing Is…… Avoiding Pitfalls. He starts the chapter by quoting Buffett: “An investor needs to do very few things right as long as he avoids big mistakes”.
Marks ends his first paragraph in Chapter 18 with : ”A portfolio that contains too little risk can make you underperform in a bull market, but no one ever went bust from that; there are far worse fates.” Marks constantly stresses risk control and is well aware that there is a price for it.
Please get a copy of the book. It is entertaining and serves-up priceless investment wisdom. The book is an investment gem and a keeper.
Best Regards.
I've been meaning to get a copy of the book and will likely do so within the next few weeks. Oaktree is a unique investment and I don't expect it to be heavily correlated to the market, but I do like it very much long-term, given the quality exposure to distressed assets and strong, very highly regarded management. Additionally, as noted above, the yield will not be consistent.
Plus, Oaktree owns a % of Gundlach's Doubleline.