2024-10-13 12:14:08 ET
Summary
- Blue Owl has rapidly grown its AUM at a 54% CAGR in recent years, driven by its fee-centric business model and focus on permanent capital.
- I value its predictable revenue streams and relatively minimal exposure to market volatility, which make it a safer investment opportunity compared to traditional banks.
- Despite recent gains, OWL appears modestly undervalued. It offers a forward yield of 3.4% with further potential upside.
- I argue that OWL is well-positioned to continue outperforming its peers in the near term.
When evaluating companies in the Financials, my priorities are stable earnings and minimal exposure to credit risk, and if management is committed to shareholder returns, even better. I’ve generally avoided direct investment in traditional banks (both large and small) and prefer other industries within the sector, such as asset managers, data providers, and payment processors....
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For further details see:
Blue Owl: A Wise Choice For Long-Term Investors
