Blue Owl: Redemptions Panic Creates A Hard-To-Miss Opportunity (Rating Upgrade)

JR ResearchInvesting Group LeaderFollow5ShareSavePlay(12min)CommentsSummaryBlue Owl Capital faces peak redemption pressures, but I see this as a capitulation point and now upgrade the stock to buy.Direct lending fees drive over 60% of 2025 adjusted revenue, with private wealth redemptions concentrated among a small minority of investors.Despite redemption-driven volatility, OWL’s liquidity remains robust, and outflows are modest relative to NAV, supporting business model resilience.Valuations are already deeply discounted (10% forward yield and >12% two-year earnings CAGR expected).The complete turnaround in OWL's price action is nearing the selling exhaustion zone. Buying accumulation should soon resume.Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More » KanawatTH/iStock via Getty Images Blue Owl Capital: Are we (finally) at peak redemptions? I truly feel sorry for you, if you are a private credit investor, or if you invest in one of the alternative asset managers like Blue Owl CapitalThis article was written byJR Research47.35K FollowersFollowJR Research is an opportunistic investor. I was recognized by TipRanks as a Top Analyst, and also by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. I identify attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. My picks have consistently demonstrated market outperformance over time. My approach combines timely and sharp price action analysis with fundamentals as my foundation. I also tend to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities. I run the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. My main ideas revolve around stocks with strong growth potential, and also well-beaten contrarian plays. I designed the group for investors seeking to capitalize on growth stocks with solid fundamentals, robust buying momentum, and appealing turnaround plays to generate alpha consistently. Learn moreAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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.