Blue Owl Capital (OWL-N)

It is an alternative investment manager and the whole sector has done well. The last quarter was decent and showed earnings growth in the 20% range. On Investors Day it said that earnings would grow at 20% each year for the next 5 years. Its valuation is less than its peers but it trades at less.

Like Brookfield, and the alternative capital sector has been doing very well with firmer equity markets and more M&A. Last week's results were very decent, and they project earnings to grow around 25% this year and fee-related earnings to grow over 20% annually over 5 hears. Their PE is lower than peers, but are growing faster.

He is considering adding to his position. The stock is off because the announced margins are not as good as investors expected. However he feels that you buy a company for how much cash it generates and how successful it is, not its margins.

It is riding three waves in the investment world: leaseback transactions, private credit and alternative investments. Also it owns stakes in private equity firms which are very profitable.     Buy 10  Hold 4  Sell 0

They're riding the waves of private credit (direct lending, predicted to be the fastest-growing asset class among alternative investments), the growth of sale/leaseback transactions with investment-grade companies, and bringing alternative investments to retail clients. Revenue earnings should grow 20% this year, trades at 22x PE and raised their dividend last week to over 4%.