Mon, May 27, 2019
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Oaktree's Howard Marks finds opportunity in emerging market equities, private lending

Thursday, July 19, 2018

Bailey McCann, Opalesque New York:

Oaktree's Howard Marks is bullish on large swaths of the global economy, but in an extended interview at today's Delivering Alpha Conference he questioned how long economic expansion can really go on.

"What you see when there are prolonged recoveries like this is people start making excuses for why the market is only ever going to go up. I've never seen that come true," he told CNBC's Scott Wapner.

Marks also raised concerns about Trump's tax bill. "There's a question about whether you should stimulate an economy when it's in the ninth year of a recovery," he said. "Doctors do not give adrenaline to healthy patients." He added that the tax bill did create a bump in corporate earnings this year, but questioned what happens next year when that impact fades away.

Still, Oaktree is finding opportunity. Marks said he was bullish on emerging market equities, private lending, real estate lending and infrastructure.

Marks also tied the extended expansion in the US economy to the growth in passive investments like ETFs. Over the past few years, more active managers have started to raise alarm bells about the potential liquidity risk embedded in ETFs, which promise daily liquidity but may find that doesn't hold up during a significant market correction. "So, for example, we have high-yield ETFs, which people assume they can sell any minute. But if they know that they had a portfolio of high-yield bo......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Redemptions hit quant king AQR in performance slump[more]

    From Financial News: AQR Capital Management, one of the biggest quantitative fund managers, is undergoing a prolonged performance downturn that has led to investors withdrawing increasing amounts in 2019. The Connecticut-based firm, which manages both hedge funds and mainstream long-only funds,

  2. Investing: Hotshot active fund managers will soon have a way to play the ETF game, US hedge fund Coatue may lead $120m funding in Faasos parent, David Tepper's Appaloosa sharply boosts bet on U.S. stocks, 3 big-name pot stocks money managers dumped in the first quarter, Secretive investment firm Lone Pine Capital is quietly minting tech unicorns in Seattle, Hedge fund Marshall Wace is a secret winner in the Amazon-led $575m funding round for food-delivery company Deliveroo[more]

    Hotshot active fund managers will soon have a way to play the ETF game From CNBC: ActiveShares, a product built by financial innovation firm Precidian Investments, received an SEC nod that its so-called nontransparent ETFs should be approved. A marked break from the norm, nontransparent

  3. Tech: 'It's a cat-and-mouse game': The head of technology at $60bn hedge fund Two Sigma explains why cybersecurity is a bigger challenge than AI, Computer models won't beat the stock market any time soon[more]

    'It's a cat-and-mouse game': The head of technology at $60bn hedge fund Two Sigma explains why cybersecurity is a bigger challenge than AI From Business Insider: A big part of Alfred Spector's job is to think about the future. Spector, the chief technology officer at Two Sigma and head

  4. Activists: Voce Capital drops proxy fight with insurer Argo Group, Blackstone battles Elliott for QEP, Sony CEO stresses value of Sony pictures entertainment at strategy briefing[more]

    Voce Capital drops proxy fight with insurer Argo Group From Express News: San Francisco hedge fund Voce Capital Management has dropped its proxy fight with Argo Group International Holdings, the specialty insurance company that has its U.S headquarters in San Antonio. Voce blamed A

  5. People: Hedge funds raid BNP's shuttered prop desk amid talent race[more]

    From Bloomberg: BNP Paribas SA's closure of its proprietary-trading desk has triggered a hiring frenzy for the world's biggest hedge funds. Citadel has recruited Mathieu Gaveau, who was head of rates at BNP's Opera Trading Capital division until it was shut down in January. Paolo Nicolosi, a se