Core Viewpoint - Soros Fund Management made significant adjustments to its investment portfolio in the fourth quarter, focusing on increasing exposure to tech giants while engaging in "buy high, sell low" strategies for energy and cryptocurrency stocks [1]. Group 1: Technology Sector Investments - The fund substantially increased its holdings in core technology stocks, including adding 161,000 shares of Microsoft (MSFT.US), 118,000 shares of Nvidia (NVDA.US), and approximately 66,000 shares of Apple [3]. - In the software and mobility sectors, the fund also increased its positions by acquiring approximately 216,000 shares of Atlassian (TEAM.US), 55,000 shares of Salesforce (CRM.US), and 119,000 shares of Uber (UBER.US) [3]. Group 2: Defensive and Growth Investments - In the defensive sector and consumer space, the fund increased its holdings in utility company Exelon (EXC.US) by approximately 488,000 shares and in gaming giant Electronic Arts (EA.US) by about 318,000 shares [3]. Group 3: Reduction in High Volatility and Financial Stocks - The fund reduced its positions in high-volatility and financial stocks, significantly cutting approximately 168,000 shares of Snowflake (SNOW.US) [4]. - It also reduced its holdings in Circle Internet Group (CRCL.US) by about 151,000 shares and in Interactive Brokers (IBKR.US) by approximately 813,000 shares, indicating a cautious stance towards the financial brokerage sector [5][6]. Group 4: New Positions and Exits - The fund opened new positions by purchasing gold-related assets such as New Gold (NGD.US) and established positions in DigitalBridge (DBRG.US), Blue Owl Capital (OWL.US), Exact Sciences (EXAS.US), and Xcel Energy (XEL.US) [7]. - It completely exited positions in KeyCorp (KEY.US), CareTrust REIT (CTRE.US), Cipher Mining (CIFR.US), and KKR & Co. (KKR.US), indicating a shift away from traditional banking and certain cryptocurrency mining stocks towards more stable or defensive sectors [7]. Group 5: Overall Strategy - The overall strategy of Soros Fund Management in the fourth quarter reflects a clear approach: embracing AI and core tech assets like Microsoft and Nvidia while avoiding high-volatility cloud and data companies like Snowflake, and hedging against macroeconomic uncertainties by investing in gold stocks. This "pick and choose" adjustment strategy highlights the pursuit of certainty and safety margins amid global economic uncertainties [7].

Core Insights - The private credit industry's actual loan exposure to the software sector may significantly exceed disclosed levels, with at least 250 investments worth over $9 billion not classified as software loans despite being defined as such by other lenders or sponsors [1][2] - The software sector has become the largest single industry exposure for Business Development Companies (BDCs), accounting for approximately 20% of all loans held by BDCs, compared to 13% in the broader leveraged loan market [2][6] - The classification inconsistencies among BDCs complicate the assessment of risk exposure, especially as AI technologies threaten traditional software business models [1][7] Group 1: Classification Issues - A review of disclosures from major BDCs revealed that software companies are often categorized under different industry classifications, leading to a lack of clarity regarding their actual exposure [3][4] - For instance, companies like Pricefx and Kaseya, which identify as software firms, have been classified as "business services" and "professional retail" respectively by their lenders, highlighting the discrepancies in classification standards [3][4] - This inconsistency extends even within the same company, as seen with Blue Owl Capital, where the same firms are classified differently across various funds [5] Group 2: Market Risks and Concerns - The influx of private equity funds into the software sector has been significant, with approximately 30% of private equity capital flowing into this industry over the past decade, and software accounting for 40% of all sponsor-backed private credit [6] - Recent advancements in AI technology have raised concerns about the future of software businesses, with the S&P North American Software Index dropping over 20% this year, indicating heightened market anxiety [7][10] - Analysts warn that the ongoing AI revolution is fundamentally altering the software industry, rendering historical classification guidelines obsolete and increasing scrutiny on private credit managers [10]

Core Viewpoint - Private equity firms are striving to convince investors that their portfolios are resilient against the recent sell-off in the software sector, driven by concerns over artificial intelligence undermining competitiveness in the industry [1] Group 1: Company Performance and Portfolio Exposure - Ares reported that approximately 6% of its overall assets are invested in software companies, with a diversified portfolio minimizing exposure to AI-related risks [2] - Apollo Global Management has less than 2% exposure to the software industry, with its private equity business having nearly zero exposure [2] - KKR has about 7% of its portfolio in the software sector, while Blue Owl has 8%, both experiencing significant stock price declines of 29% and over 36% respectively in the past six months [3][6] Group 2: Market Reactions and Investor Sentiment - Despite strong financial performance, private equity firms have seen stock sell-offs, with one firm experiencing a nearly 6% drop this week and an 11% decline over the past six months [3] - Concerns about excessive investments in AI by alternative asset management firms have led to fears of potential losses if AI fails [6][7] - Analysts suggest that the narrative around alternative asset management firms suffering losses due to AI's transformative impact may be flawed, indicating a potential misjudgment in market sentiment [7]

Core Insights - Blue Owl Capital Corporation (OBDC) has experienced a negative 7% total return since the last bullish analysis, raising concerns about a potential dividend cut [1]. Company Performance - The stock performance of Blue Owl Capital Corporation has not met expectations, with a noted decline in value [1]. Analyst Background - The analyst has a background in IT and has been managing a family portfolio for seven years, gaining confidence in investment decisions through fundamental analysis [1]. - The analyst aims to provide clear and accessible insights for investors of all experience levels, leveraging a diverse understanding of various sectors [1].

Blue Owl Capital Closes Inaugural Strategic Equity Secondaries Strategy with Over $3 Billion Raised Across Institutional and Private Wealth Channels [Accessibility Statement] Skip NavigationNEW YORK, Feb. 11, 2026 /PRNewswire/ -- Blue Owl Capital Inc. ("Blue Owl") (NYSE:OWL) today announced the final close of its strategic equity and secondaries strategy, Blue Owl Strategic Equity ("BOSE"), with total commitments of over ~$3 billion. The strategy raised capital from a diverse client base across its global P ...

IRVINE, Calif.--(BUSINESS WIRE)--Five Point Holdings, LLC ("Five Point†or the "Company†) (NYSE:FPH), an owner and developer of large mixed-use planned communities in California, today announced the formation of a new residential land banking investment partnership executed by its Hearthstone Residential Holdings platform ("Hearthstone†), with funds managed by Blue Owl Capital Inc. ("Blue Owl†) (NYSE: OWL). The investment partnership is designed to support the acquisition of residential homesit. ...

Core Insights - Blue Owl Capital Inc. (NYSE:OWL) is identified as one of the 14 oversold value stocks to consider for investment [1] - Co-CEO Mark Lipschultz commented on the limitations of AI in stabilizing software and technology-linked businesses amid a significant market selloff [2] - The company reported strong fourth-quarter results, with adjusted EPS of $0.24, exceeding forecasts, driven by robust performance in credit and real assets [3] Financial Performance - For Q4, Blue Owl Capital achieved adjusted EPS of $0.24, surpassing the expected $0.22 [3] - New capital commitments reached $17.3 billion, contributing to total assets under management (AUM) exceeding $300 billion [3] - The software segment constitutes only 8% of total AUM, indicating limited exposure to the recent market downturn [2] Market Context - The S&P 500 software and services index experienced a selloff, losing over $800 billion since January 28, impacting technology-linked businesses [2] - Despite the market challenges, Blue Owl Capital demonstrated stable performance and minimal losses post-earnings call [2] - Analysts from Oppenheimer expressed optimism regarding the company's growth and resilience in private credit demand, even in tighter lending conditions [3]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Summary of Blue Owl Capital Conference Call Company Overview - **Company**: Blue Owl Capital (NYSE: OWL) - **AUM Growth**: Grew from $0 to $300 billion in less than 10 years, focusing on private credit, digital infrastructure, and asset-backed finance [4][10][11] - **Market Position**: Ranked as a top two alternative manager in the private wealth channel, which is the fastest-growing channel over the last five years [4] Macro Environment - **Market Outlook**: Entering year four of a bull market with expectations for accelerated IPO and M&A activity [6] - **Interest Rates**: The company is agnostic to interest rate movements, but a favorable M&A environment is anticipated [6][8] - **M&A Activity**: Cautiously optimistic about M&A leading to good deployment opportunities, despite previous underperformance in this area [7][8] Strategic Priorities for 2026 - **Execution Focus**: 2026 is centered on execution and improving margins after a period of acquisitions and integration [10][11] - **Margin Improvement**: Expected gradual increase in margins from 58% to 60% over time [11] - **Fundraising Goals**: Aiming to complete fundraising for various funds, including a target of $7.5 billion for the GP Stakes Fund [12][13] Deployment and Investment Strategies - **Deployment Outlook**: Strongly tied to M&A cycles; private equity firms prefer financing buyouts with private debt [16][18] - **Digital Infrastructure**: Significant backlog in digital infrastructure projects, with a focus on high-quality tenants [9][19] - **Triple Net Lease Strategy**: Market leader in triple net lease investments, generating over 20% returns per annum [20][22] Asset-Backed Finance (ABF) - **Acquisition of Atalaya**: Acquired Atalaya to enhance ABF capabilities, with a total addressable market (TAM) estimated between $8 trillion and multiples of that [31][32] - **Performance**: The ABF segment has shown exceptional performance, generating a 19% gross return last year [34] Credit Quality Trends - **Loan Performance**: Average company EBITDA of $320 million with low annualized losses of 8 basis points over 10 years [36][37] - **Market Sentiment**: Despite negative press, portfolios are performing well, with expected continued strong performance over the next 18-24 months [38][39] Wealth Management Insights - **Market Position**: Second in the world for private wealth management, with a focus on providing a better investor experience [57][58] - **Future Trends**: Anticipates a shift towards private equity and strategies offering low volatility and high current income [59][60] Additional Insights - **Redemptions**: Noted an increase in redemptions due to market volatility, with expectations for a return to historical levels later in the year [47][50] - **AI and Technology Investments**: Cautiously optimistic about the long-term impact of AI, focusing on partnerships with established companies rather than speculative investments [29][30] This summary encapsulates the key points discussed during the Blue Owl Capital conference call, highlighting the company's strategic direction, market outlook, and performance metrics.

RT Bloomberg Live (@BloombergLive).@BlueOwlCapital's AUM grew to over $300B in the 4Q earnings showed recently. We have CEO Marc Lipschultz at #BloombergInvest addressing everything from the reaction in the stock $OWL, to his outlook for private credit with @BloombergTV’s @mattmiller1973 on March 4th.Live 3/4 at 11:35 AM ET!https://t.co/M67O8zRwc7 ...