Alpha Gen Capital
Alpha Gen Capital • 31 Comments
Mon, Jan. 11, 10:13 AM
- Alongside an already-reported downgrade for WisdomTree (it's lower by 6.4% today), Goldman cuts Oaktree Capital (OAK -1.9%) to Buy from Conviction Buy, and Artisan Partners (APAM +0.2%) and Janus Capital (JNS +0.2%) to Neutral from Buy.
- The group of four is down 18-37% over the past year, including double-digit declines in just 2016's first handful of sessions.
Nov. 2, 2015, 3:14 PM
- Leading the way higher for the roughed-up sector are alternative players like Och-Ziff Capital (OZM +10.1%) and KKR (KKR +9.3%). There's also Blackstone (BX +4.3%), Fortress (FIG +3.2%), Oaktree (OAK +4.2%), and Carlyle Group (CG +7.4%).
- Traditional names like Manning and Napier (MN +11.7%), Affiliated (AMG +2.6%), Waddell & Reed (WDR +2.7%), Virtus Investment (VRTS +3.7%), and Legg Mason (LM +2.3%).
- Many of these names have reported Q3 already, and the results have mostly disappointed. On tap for tomorrow is Och-Ziff.
Mar. 3, 2015, 9:11 AM
- Expected gross proceeds from the 4M Class A unit offering are $210M, suggesting a price per unit of $52.50. The underwriter greenshoe is for another 600K units at that price.
- Again, the company is using the money to buy out certain insiders from investments in Oaktree (NYSE:OAK) businesses.
- Shares -3.4% premarket to $52.
- Previously: Oaktree launches 4M share secondary (March 2)
Mar. 2, 2015, 4:14 PM
- Oaktree Capital (NYSE:OAK) won't keep any of the proceeds, but instead use the money to buy back interests in its businesses from certain board members and current and former management.
- Shares -1.5% after hours.
Feb. 9, 2015, 10:31 AM
- "As we begin 2015 with our largest-ever fund marketing pipeline, we believe we are well positioned to take advantage of growing investment opportunities," says Howard Marks, no doubt eyeing opportunities created by the oil price crash, among other things.
- Q4 adjusted net income fell sharply from a year ago - $98.4M or $0.61 per share vs. $268.4M and $1.62 - thanks to lower incentive and investment income, but still cruised past expectations. ENI off $18.7M fell from $303.2M.
- AUM of $93.2B at year-end vs. $83.6B a year earlier. Management fee-generating AUM of $78.1B vs. $72B. Incentive-creating AUM of $33.9B vs. $32.4B.
- Dry powder of $10.3B down from $12.4B last quarter and $13.2B a year ago.
- Conference call at 11 ET
- Previously: Oaktree Capital Group beats by $0.15, beats on revenue (Feb. 9)
- OAK +3.1%
Jan. 14, 2015, 10:07 AM
- Medley Management (MDLY -7.9%) has struggled since its September IPO, and falls further today as KBW pulls its Outperform rating and cuts the price target to $16 from $19.50.
- While we're on alternative asset managers, KBW at the same time upgrades Oaktree Capital (OAK +0.7%) to Outperform. The trouble in the energy patch should be manna to the distressed asset studs at Oaktree.
Jan. 6, 2015, 2:38 PM
- One of today's worst-performing sectors as oil tumbles below $48 per barrel is private-equity. It was late last year Blackstone's Steven Schwarzman told investors he was itching to buy into the dive in energy, a promise he made good on in the first session of this year. In general one would think the plunge is a good thing for the opportunistic types who manage these companies.
- In late December, it was estimated buyout firms had lost a combined $11.7B in 27 publicly traded oil producers since June, and that was with oil nearly $10 higher than it is today.
- ETFs: PSP, PEX
- Other individual names: KKR (KKR -2.1%), Fortress Investment (FIG -2.7%), Apollo Global (APO -3.5%), Oaktree (OAK -3.9%), The Carlyle Group (CG -2.8%), Ares Management (ARES -1.8%).
Dec. 4, 2014, 10:19 AM
- In private-equity, Blackstone (BX +1.4%) and KKR & Co. (KKR +0.9%) post gains after being initiated with Overweight ratings, while Carlyle Group (CG -1%) and Oaktree Capital (OAK -0.5%) are started at Equal Weight.
- Moving onto traditional asset managers, Invesco (IVZ -0.5%) is rated Overweight, while T. Rowe Price (TROW -0.3%), Legg Mason (LM -1.5%), Franklin Resources (BEN -0.9%), and BlackRock (BLK -0.2%) are all started at Equal Weight.
Dec. 2, 2014, 3:22 PM
- Looking to maybe call a bottom for the struggling common stock of Oaktree Capital (OAK +4.9%), Barron's David Englander says Howard Marks' shop is positioned just right to profit (again) as the credit cycle turns.
- Markets "appear to be in a virtuous cycle in which the defaults are unlikely to rise in the foreseeable future," said Howard Marks on the recent earnings call. "But virtuous cycles don’t go on forever. Sooner or later, defaults will rise and markets will fall.” It's when they do, says Englander, that Oaktree will find itself in high cotton. The company has $93B in AUM, and plans on raising another $20B to add to an existing $13B in "dry powder."
Oct. 27, 2014, 2:54 PM
- Oaktree Capital (OAK +0.7%) agrees to purchase Hess' (HES -2.1%) 50% share of energy trader HETCO for an undisclosed amount, and says it will inject $500M to fund expansion into new commodity markets.
- HES launched the sale of Hess Energy Trading more than a year and a half ago after investors urged the company to divest the unit, saying it weighed on the company's balance sheet.
- HES has been shedding assets since 2013, when activist shareholders including Elliott Management forced a reorganization of the board.
Oct. 17, 2014, 10:29 AM
- Signature Group (OTCQX:SGGH +24.2%) agrees to acquire the recycling business of aluminum fabricating company Aleris Corp. for $525M in cash and stock.
- The unit is the world's largest independent recycler of aluminum, Signature says, adding that it believes the use of remelted aluminum will outpace consumption of primary aluminum for the next decade
- Aleris is owned by Oaktree Capital Management (OAK +0.9%).
Aug. 12, 2014, 11:32 AM
Mar. 5, 2014, 8:39 AM
- 5M units offered by insiders were (apparently) priced at about $60 per share for about $300M in gross proceeds. The underwriter greenshoe option is for another 750K shares.
- OAK -2.9% to $59.40 premarket
Nov. 14, 2013, 5:57 PM
- Intrexon (XON) +4.8% AH after David Einhorn's Greenlight Capital reveals it opened a ~2.1M-share position in the biotech company that went public in August. (13F)
- Greenlight also started positions in NVR and Tempur Sealy (TPX), and added large stakes in WPX Energy (WPX) and Spirit AeroSystems (SPR); it closed positions on Oaktree Capital (OAK), State Bank Financial (STBZ) and Capital Bank Financial (CBF), while selling 20% of its shares in Rite Aid (RAD).
- Its biggest positions are still in Apple (AAPL), 21.1% of the portfolio; GM, 11.3%; and Marvell Technology (MRVL), 9.4%.
May 7, 2013, 9:22 AM
More on Oaktree Capital (OAK) Q1 earnings: Clicking. Adjusted net income of $335.8M up 117% Y/Y. Distributable earnings of $1.79/share, up 167%. Quarterly distribution of $1.41/share announced, up from $0.55 a year ago. "As we mark our first anniversary of being public, Oaktree's performance and prospects have never been better." Indeed. CC at 11 ET. Shares +3.2% premarket. (PR)| May 7, 2013, 9:22 AM
Apr. 16, 2013, 9:02 AM
The private-equity space may see some action today as Sandler O'Neill ratchets up price estimates on Oaktree (OAK), Blackstone (BX), and KKR to $63, $25, and $24, respectively. Oaktree's distribution could reach $4.38 this year, says Sandler, implying a 9% yield. BX +1.3%, KKR +2.5% premarket.| Apr. 16, 2013, 9:02 AM