Friday, 27 March 2015
Last updated 3 hours ago
Mar 7 2011 | 9:26am ET
Oaktree Capital Management is liquidating the hedge fund it launched three years ago to take advantage of the financial crisis with distressed investments.
The Los Angeles-based firm began returning $3 billion from its $11 billion OCM Opportunities VIIb fund in January. Howard Marks, the firm's chairman, told Bloomberg News that there simply aren't the same kinds of opportunities available today for the fund, which has enjoyed annualized returns of 31%.
"People went in to the 2008 fund because we told them that was a great cyclical opportunity to make extremely high returns," he said. "But this kind of opportunity is not there in today's market, so I think we should return the money to investors and they can choose whether to come back into any of our new funds," such as the $1.6 billion U.S. mezzanine fund the firm raised in November.
Oaktree is returning capital from the Opportunities fund before the beginning of its liquidation period rather than reinvesting proceeds from asset sales.
Those investors who do choose to come back to Oaktree will likely be getting a steadier diet of European investments as opposed to U.S. investments, Marks said.
"The better opportunities lie in Europe, because banks have some purification job to do on their portfolios, and in mid-cap deals and also in debt related to commercial real estate," he explained. "We indicated to our investors in 2008 that a return before fees of more than 25% is possible. Today, you can't get that level of returns from traditional U.S. distressed debt."
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…