Oaktree Investment Advisors is one of the most prominent investment advisors focusing on alternative investments. Founded in 1995, Oaktree has grown to manage over $160 billion in assets with a value-oriented investment philosophy. Its prudent risk management and consistent performance have made Oaktree a leader in distressed debt, convertible securities, control investing and other alternative strategies. This article will provide an overview of Oaktree’s investment strategies and track records.
Oaktree’s Breadth of Alternative Investment Strategies
Oaktree Investment Advisors offers a wide array of alternative investment solutions across credit, real assets, listed equities and private equity. Its distressed debt expertise is a cornerstone of the firm, managing over $30 billion in stressed and distressed credit investments. Another major strategy is convertible securities, an underfollowed asset class where Oaktree runs over $20 billion. The firm also pursues value-oriented investments in emerging markets, European high yield bonds and U.S. senior loans. Additionally, Oaktree maintains sizable control investing and real estate platforms, focusing on turnarounds and restructurings.
Prudent Risk Management Philosophy
Oaktree’s investment philosophy centers on risk control, consistency and downside protection. The firm pursues moderate leverage and emphasizes capital preservation. Oaktree believes superior risk-adjusted returns derive from in-depth credit analysis, patience, market inefficiencies and contrarian thinking. Its portfolios typically exhibit lower volatility than benchmarks due to diversification, credit selectivity and default avoidance. Oaktree’s insistence on individual security analysis gives their strategies an edge in distressed situations.
Strong Long-Term Track Record Across Market Cycles
Oaktree Investment Advisors has delivered strong results across its strategies since inception. Its distressed debt funds have returned an average 19% net annually since 1995. The convertible securities platform has averaged a 15% net return over 17 years. Oaktree’s emerging markets equities strategy has outpaced its benchmark by 250 basis points per year over a decade. Such consistent outperformance highlights the firm’s ability to navigate different market environments.
Oaktree Investment Advisors has grown into an industry leader in alternative investments with its prudent approach focused on risk control, consistency, and downside mitigation. Its long-term track record across market cycles validates Oaktree’s value-oriented philosophy and contrarian approach. For investors seeking diversification and lower volatility profiles, Oaktree’s alternative investment strategies are worth considering.