Put in $2000, then purchased:
$500 for APO
$300 for BN
$500 for BX
$740.74 for OWL
With the alternative asset managers involved in private credits getting further hammered today, I couldn't help but to buy more. The gap between the IRR of my portfolio and a hypothetical SPY-only portfolio was narrowed to less than 30 basis points. Am I worried? Nope. It's a wonderful opportunity to BUY LOW.
Either intentional or not, a big bank leader like Jamie Dimon expressing concerns about the private credits (2026/02/23 cnbc news) definitely pours gasoline into the fire. Craig Packer, Co-President of Blue Owl Capital and Head of the Credit Platform had an interview on CNBC but it didn't have an immediate effect to calm the market on OWL.
I don't have much to add except that the concerns by Jamie Dimon and other big shots were totally baseless. The narrative spins the trade-offs of private credits as a big flaw like they just discover anything new (p.s. every investment has a trade-off, e.g. liquid checking account only gives you 0.01% interest rate offered by the nice bankers in JP Morgan). Private credits have a higher yield not because they are more risky, but because they are more customized, which makes them "less transparent" (of course they cannot disclose all the details of their borrowers for proprietary reasons!). The market sentiment is so negative that if Blue Owl repurchases their shares, commenters would be like, "wow, they use their own money to buy their own shares, I smell something fishy!" It's getting ridiculous.
P.S. There was $40.74 from dividend distributions which was swept to another for higher interest rate and swept back to be used in this portfolio update. There is still another $68.30 from dividend distributions in another account for earning a higher interest rate. I will transfer it back for the next purchase in this portfolio.
Transactions
Recent and upcoming dividend distributions
Portfolio performance snapshot
Total return:
One-year return:
Portfolio IRR (calculation): 17.32%
Approximated IRR for an SPY-only portfolio: 17.05%
Individual holdings:
Breakdown by categories (real-time):
Total returns for individual holdings:
Last prices:
Portfolio holdings conviction
The convictions in the table below reflects my current opinions and will guide the future contribution of additional investment to existing holdings. Stocks not inside the table are stocks with subpar return on equity that will be very unlikely to receive more contributions from new money (there can be exceptions for very cheap stocks).
Conviction in long-term prospects means how much I believe a company would match or outperform the market (e.g. S&P 500) in the long run. Valuation matters so the conviction generally corresponds to the neutral rating of Valuation. It has the following ratings: weak, moderate, strong
Valuation: greatly overvalued, overvalued, slightly overvalued, neutral, slightly undervalued, undervalued, greatly undervalued
