Oaktree Bets Against The U.S. Economy; Investors Might Bet Against Oaktree
- Oaktree is currently seeking $10 billion for its Opportunities Fund X, wagering the economy will slow down, in turn allowing them to purchase debt at a less expensive price.
- Oaktree's bets against the U.S. markets are risky, as the U.S. Federal Reserve continues to hold interest rates at a near zero level.
- The firm's stock is down 14 percent YTD, and recent earnings results show a 40% decrease in adjusted net income and a 55 percent drop in second-quarter earnings.
- While other factors, including Oaktree's historical results and dividend yield, are promising, we recommend investors take caution with the stock moving ahead in 2014.