Okay, I've always enjoyed a lot of what Howard Marks has to say but what's up with the returns of some of the Special Sits and Distressed funds? A lot of them seem like garbage when compared to the latitudes they have and inherent risk profile. I'm not talking about the Power Opps funds as those are their own animal.
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Not surprised. Distressed has been a hard business to be in for the past decade.
I was looking at some of their pre 2008 funds that were still garbage.
It's amazing to me that they can continuously pitch their returns to investors as "a bit better than the rest" and that they "don't shoot for the moon and take logical small bets and focus on downside deviation" while they repeatedly underperform their peer group. Reminds me of Whitehorse Liquidity Partners' "gift of the gab" approach.
How big are these Oaktree fund vintages that we’re talking about? I’m not surprised there are straggling stub LP pieces in 10 year old $10bn+ distressed funds ngl
The NAV remaining would be in the hundreds of millions for some of these tail-ends.
Oaktree just raised $16B for their distressed / opportunistic strategy. How are they able to if the returns / portfolios are as bad as people in this thread are making it out to be? There seems to be a disconnect...
I was shocked.. absolute shit returns all across their distressed funds
probably a function of ppl thinking a correction is coming, after which oaktree will feast...a correction that hasn't happened for 13 years...
was getting that impression after reading some of his recent memos
Past few funds have had pretty shit returns. The previous and current ~$16bn fund have stellar returns. Biproduct of them no longer chasing the very few distressed opps and instead shifting into a more flexible mandate (e.g. distressed, growth, buyout, venture, etc.). Probably one of the most opportunistic groups out there at this point.
Edit: this is referencing the "Global Opportunities" group, f/k/a Distressed Debt. Special sits is the separate, smaller fund focused on distressed control investments.
Isnt the global opportunities fund focused on distressed for control situations as well?
To my knowledge, it's something they can do, but not THE mandate (as opposed to SS, where it is THE mandate). Their bread and butter is non-control public distressed credit investments.
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curious as well
What are the returns for the global ops 16b fund?
How is Oaktree Opps perceived within the industry right now ? Is it still considered top notch ? How does it compare to Apollo ?
In terms of prestige / learning curve / exit opps, how does it compare to large MF PE (obviously not the same industry) at the Associate level?
Awful returns
Can anyone explain what is up with their power opps? Wdym by its own animal? Also, how are their real estate funds?
Prob not so well..
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