Blue Owl Capital: I'm Finally Taking The Bull Camp

Roberts Berzins, CFA13.88K FollowersFollow5ShareSavePlay(11min)Comments(18)SummaryMy contrarian bear case for Blue Owl Capital has played out as planned - i.e., the stock is down by ~22%.Even my thesis that the dividend will inevitably fall under the chopping block seems to come to fruition.However, I have to admit that the market has become too emotional here, pricing OBDC as it is about to face a calamity.This (the magnitude of the current discount) is very far from the actual reality and underlying financial dynamics.

Getty Images Back in July, 2024, I wrote my first bearish piece on Blue Owl Capital (OBDC), which at that time caused a lot of debate because the consensus was overwhelmingly bullish and the key metrics likeThis article was written byRoberts Berzins, CFA13.88K FollowersFollowRoberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic capital markets. Other policy-level work includes the development of national SOE financing guidelines and framework for channeling private capital into affordable housing stock. Roberts is a CFA Charterholder, ESG investing certificate holder, has had an internship in Chicago board of trade (albeit, being resident and living in Latvia), and is actively involved in "thought-leadership" activities to support the development of pan-Baltic capital markets.Analyst’s Disclosure: I/we have a beneficial long position in the shares of KBDC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.