Saturday, November 21, 2015

Buy OAK (Oaktree Capital Group LLC) @ $48.75 on 20Nov2015

OAK (Oaktree Capital Group LLC) recommended Buy @ $48.75 on 20Nov2015.
Market is valuing OAK only based on Management Fee Income and discounting prospects of further growth in Fee Generating AUM which can double over next 6 years.
Also market is discounting value of unrecognized carry and Balance Sheet assets including 20% ownership in Double Line Capital and the incentive income stream.
OAK is well positioned for upcoming downturn in Credit Cycle and can quickly raise and deploy distresed debt funds.
Also OAK step put strategies are expanding into many areas presenting further avenues for growth.

Another option is to sell $50 Apr2016 Puts to lock in price below $46.

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