$OWL is an alternative asset manager where investors can only withdraw their money to a limited extent. Its business consists of three pillars, the largest of which is lending (direct lending). As some investors are assuming massive loan defaults in the software sector, the share has crashed. It is also one of the most shorted stocks on the NYSE.
In fact, there is no sign that the AUM is eroding, but it is rising by 10 billion per quarter, which is generating more and more fees.
Also, their credit funds continue to have the lowest default rates in the industry (<0.5%). They are also massively expanding their other two business areas.
The share price fall has led to a 9% dividend while they wait for the market to stop going crazy.
As a bonus, a short squeeze awaits, as the 140m shares borrowed will have to be bought back at some point.
Incidentally, the new business comes from US pension funds and life insurers, who examine the loan portfolios very closely and understand the business model. (Less well-informed) retail investors, on the other hand, are looking for a way out.
In any case, I got in big and bought more. What do you think?
