May 1 (Bloomberg) — Oaktree Capital Group LLC, the world’s largest distressed-debt investor, posted first-quarter profit that beat analyst estimates after it earned more than expected from selling holdings.
Adjusted net income, a measure of profit excluding costs such as noncash equity compensation and income taxes, decreased to $246.9 million, or $1.46 a share, from a record $335.8 million, or $1.95 a share, in the first quarter last year. The results exceeded the $1.09-a-share average per-share estimate by nine analysts in a Bloomberg survey.
Oaktree Chairman Howard Marks has urged caution in credit investing since last year, saying loan funds are flush with unprecedented amounts of cash, allowing the lowest-rated companies to borrow at cheap rates. John Frank, the firm’s managing principal, said that while finding bargain investments in credit has been challenging and Oaktree is being more selective in choosing deals, it’s also benefiting from selling holdings at profitable prices.
“We need to look harder and to be more creative, but there are always pockets of distress and other opportunities even in the most bullish times,” Frank said on a conference call today with analysts and investors. “Realization activity in the first quarter was strong.”
Shares Rise
Oaktree rose 1 percent to $53.52 at 2:54 p.m. in New York, reducing losses since the start of the year to 9 percent. The company has climbed 24 percent from the $43 at which it sold shares to the public in 2012.
The firm’s measure of adjusted net income differs from U.S. generally accepted accounting principles. Under those rules, known as GAAP, Oaktree’s net income decreased to $51.8 million, or $1.30 a share, from $57.6 million, or $1.91 a share, a year earlier.
Assets under management rose to $86.2 billion from $83.6 billion at the end of the fourth quarter as the firm gathered $3 billion in new commitments and distributed money to fund investors. Oaktree plans to pay stockholders a dividend of 98 cents a share on May 15.
by Kirstin Ridley (Reuters) Newcastle United football club co-owner Amanda Staveley on Monday lost a London High Court battle with a Greek shipping tycoon over a historic debt of nearly...
On Thursday the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced action against financial networks aiding the Houthi forces in Yemen. This aims to choke off...
By Vince Golle (Bloomberg) Shipping costs are rising as hundreds of container ships that typically transit the key maritime artery of the Red Sea and Suez Canal are rerouting after a...
December 30, 2023
Total Views: 1214
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.