Blue Owl Capital: It's Darkest Before The Dawn
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Nova Capital795 FollowersFollow5ShareSavePlay(12min)CommentsSummaryBlue Owl Capital trades at a significant 24% discount to its $14.81 net asset value, despite insiders maintaining high conviction during the recent correction.A landmark $1.4 billion asset sale to public pension funds at 99.7% of par value confirms the high quality and liquidity of OBDC’s underlying portfolio.Management is aggressively executing the largest share repurchase program in company history, buying back stock at accretive prices well below the fund's reported book value.Strategic pivots into joint ventures and specialty finance, currently yielding high ROEs, are expected to offset headwinds from a declining base interest rate environment ahead. Andrii Yalanskyi/iStock via Getty Images Investment Rating - "Buy" Blue Owl Capital Corporation (OBDC) is currently the second-largest business development company (BDC) in the United States by total assets, according to the firm's investor relations data. TheThis article was written byNova Capital795 FollowersFollowA seasoned consulting specialist at a leading Central Asian bank. The author behind Novo Capital brings half a decade of experience delivering strategic insight and analysis for the bank's clientele within the private banking branch. Launching the career back in 2020 after graduating from a top CA university, the author developed a resilient methodology forged amidst global market volatility, focusing on corporate valuation, due diligence for investment opportunities, and crafting spot-on forecasts that guide long-term investment strategy. The goal of contributing to Seeking Alpha seems to be quite simple: ideas are worth discussing, and one can gain "alpha" only through gaining out-of-consensus information from opinions few professionals have nowadays. That's exactly the reason Novo Capital was created.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.