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OAK - Oaktree Cap Group LLC


racemize

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  • 3 weeks later...

When the USD was weak, I thought it was a no brainer to hold lots of cash in short term US treasuries. Now that we have a strong USD (and as a consequence I have made money thanks to a much improved USD/EUR exchange rate), I don’t feel so comfortable anymore about holding large sums in USD denominated cash equivalents.

 

Instead, I have decided to invest in businesses which hold lots of cash themselves and with the proven ability to raise lots of capital in a market crash.

 

OAK imo perfectly fits the description.

 

And my decision has nothing to do with how the stock price of these companies might behave in a market crash. I simply have no idea about what OAK’s stock price will do in a market crash.

 

Gio

 

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  • 2 weeks later...
  • 2 weeks later...

Oaktree-backed insurer aiming to raise $2B, with IPO within five years

 

Oaktree Capital (NYSE:OAK), along with other founding investors are expected to buy 25% of the common equity of Fidelis Insurance Holdings, a Bermuda insurer led by former Lancashire Holdings CEO Richard Brindle.

The company's edge against reinsurance rivals like those set up by Dan Loeb (NYSE:TPRE) and David Einhorn (NASDAQ:GLRE), according to its pitch, is its plan to profit when prices for coverage are high, but to focus on investing during other periods.

Investors today, says the pitch, will have the opportunity to cash out through an IPO in 3-5 years.

 

Marks partners with Brindle.

 

Gio

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  • 2 weeks later...

It comes down to the price you are paying for shares of OAK today.

 

How do you determine that OAK has a lot of cash?  The latest unit offering was to cash out the other set of shares held by upper employees.

 

Top insiders cashing out is what worries me about following Gio into this one......

 

cheers

Zorro

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Top insiders cashing out is what worries me about following Gio into this one......

 

FYI

I have sold to buy FIH.

I still think Packer is right about OAK’s future prospects, and I expect to be buying again as soon as I have significant new capital to deploy.

 

Gio

 

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Well shares have declined 18% since I went short and the way people said it would trade counter cyclical just hasn't happened.  We'll see how much capital they raise during this time but I haven't seen anything that changes my mind on the short. 

 

It never went above what I considered the risk on the short, so I think this was a fairly good hedge.

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