Blue Owl Capital: Follow The Insiders And Load Up
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Danil SeredaInvesting Group LeaderFollow5ShareSavePlay(9min)Comments(2)SummaryBlue Owl Capital Corporation appears heavily oversold after a 15% price correction, creating a compelling valuation discount.OBDC's underperformance is largely driven by market fears of a faster Fed rate-cutting cycle, which I believe are overstated.Insiders have been actively buying shares, signaling confidence that business fundamentals are not deteriorating as implied by current valuations.Merger termination with OBDC II raised uncertainty, but it was mainly liquidity mechanics; the key catalyst is the $200 million buyback staying active and NAV accretive.I rate OBDC as a 'buy,' anticipating upside from current levels as market concerns and merger uncertainties appear overblown. ZE14361/iStock via Getty Images OBDC's Sell-Off Looks Already Overdone I've never covered Blue Owl Capital Corporation (OBDC) stock before. It's one of the most well-known publicly traded BDCs (business development companies), at least from the coverage frequency of This article was written byDanil Sereda14.1K FollowersFollowDaniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in OBDC over the next 72 hours. 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.