Blue Owl shares drop again as asset sale, debt fund changes fan investor worries

 Blue Owl shares drop again as asset sale, debt fund changes fan investor worries.

Blue Owl shares drop again as asset sale, debt fund changes fan investor worries

Blue Owl shares fall again as asset sales, debt fund changes, and fan investors worry. Uh, yesterday, a very good analyst came in and said, "Jim, you know the problem with Microsoft's sin."

I said, "No, I'm not going to go there. That's ridiculous." He said, "Well, I did ServiceNow. Now, these are really great companies."

Okay, sir. These are great companies. If you had told me two years ago that we would have this kind of thing, I would have said, "Yes, do it.

You think these are the companies where a big bank might agree to a four-year deal for ServiceNow?" Well, now the deals are two years old. Now we talk about Salesforce, maybe not performing well in the set business.

Here's what we hear every day: it's not, and it's not a big part of your overall, but every day we understand that these companies are not getting the ARR over these years that you think they are. So they're also undervalued. They keep getting the flow. They keep getting added because I think, as you know.

The big question is, will retail pull back from this as a product, or will the RAAS that they're selling, and therefore impact the overall growth prospects for Blue Owl? I mean, that's why the stock has

Half cut, I think that one headline in the stock section is just misrepresented. It seems like we're capital Cars are getting trapped.

We are not. We continue to get inflows at a steady pace. I think there will be ebbs and flows in the industry. Remember, we don't have other wealth products.

Just credit, which is doing very well, and we think the outlook for the wealth space is quite attractive. Trap versus not being trapped

What percentage of OBDC2 shareholders do we want to redeem? We are not out with a tender offer. Okay, but who wanted how many percentages out?

If we had launched a 5% tender, it would have been subscribed. We would have expected that we would not be out with one. Instead, this fund is moving towards a rapid return of capital.

And investors are getting their money back at least. Okay, let's backtrack for a moment. Look, I'm listening to you, and I don't want

to get stuck on myself here. What kind of scenarios do your IT people have who have a lot of enterprise IT people who are enterprise? What do you say about software and SAS?

That would calm us down? Yeah. Well, I heard your comments. I think, David, you know, it was great yesterday. We are a

right lender. We are pricing the company at an average of four years of maturity. As you said, it is not a significant part of our portfolio.

We reported double-digit revenue growth in EVIDA year-over-year for our software business. We just reported yesterday.

The companies are doing well.

We think the near-term outlook continues to be good. We lend at 30% of the cost of debt on a first-come, first-served basis. It is a great cushion for us as a lender.

I think it is primarily equity risk. And I will give you a stat. That is a pretty staggering number. In all of our software deals, with the support of private equity firms, we have $200 billion of debt under our debt. There is equity.

Blue Owl Drops on Withdrawal Restriction; Grail Down on Cancer Screener Fail

Financing for a $4 billion data center project that it's developing in Pennsylvania with CoreView. But that's just, you know, part of the story here.

It also sold $1.4 billion in debt assets in its three private debt funds and is now preventing investors in Blue Owl Capital from redeeming their investments in quarterly intervals.

So that's, you know, a flag, if you will, for private credit. And so PIMCO's Mohamed El-Erian said this could be a canary in the coal mine,

which we saw with the subprime mortgage meltdown in 2007, the kind of risks that investors face in the overvaluation of the private credit market

lending standards. And so it seems like Blue Owl is getting caught up in all of this. You know, just a fancy log chart of 0wland to be kind,

It's a beautiful chart in itself. It has some real issues, and moving it to 11.12 for Wall Street 11.58now was pretty new.

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I mean, this is almost a decade-old blue owl. It certainly hasn't been an easy ride. You've been calm. You've been a genius, it's tough. You know,

There are credit issues everywhere. So don't worry about where it sits and the capital structure. Let's put private credit in your case.

Are you kidding me? Next. Scary stuff. Okay. This is a company you might not be familiar with. It's called Grail.

It's a healthcare company with a market cap of about 4 billion. It's absolutely crushing. The stock is down about 50% in premarket here.

It's down about 50% right now. The company said its multi-cancer blood test failed to meet its primary goal of reducing late-stage cancer.

Oh yeah. Ticker symbol there, Grail. So it was tough for that company to go. And they were also out today with earnings that actually came in a little better than the lower estimates.

But what's really tripping them up is, you know what's going on with that multi-cancer blood test. So you'll get another one. So wait a minute,

Do what you want me to do with tomorrow, honey. You really do. You got it. What else do I have? Open Door Technologies. You know,

These are the companies we don't talk about all the time. Ticker there, shares are up 16% at 0pm. It's an online marketplace for residential real estate.

that reported fourth-quarter earnings, and I think you're also starting to see Bloomberg Intelligence notes that the Opendoors platform change is helping to drive growth there.

But you're starting to see that change in the housing market. I don't know if we can call it a buyer's market, but inventories are picking up a little bit.

We saw mortgage rates coming down now. And so companies like OpendoorTechnologies, these online marketplaces, were real for real estate, especially residential, you know, taking advantage of their spring selling season.

Tell us about the settlement. Yeah, absolutely. It went from 30 to 1. Oops, check that 30 to 2, and then it exploded to 10 and came back halfway.

That's it. Does it look like it's almost mummified? Yeah, it's all over the place. Okay. Time for another one. I'll put my back on it. My technology is down 11%.

The software company had a weaker-than-expected first-quarter and full-year IPO pitch for Akamai in 1999. I was sitting in a room.

Morgan Stanley. You want to own the Internet? You don't know how. Here's your stock. Here's the guts. This is the plumbing of the Internet. That's it.

And people are like, well, I am because we didn't know how to get the Internet going quickly. The difference here is that there were no profits at the time. Now, yeah, these things are just, you know, big things, right? Not exactly a bar.