During his recent interview with Forbes, Howard Marks explained why today’s conditions are better for the bargain hunter since the GFC. Here’s an excerpt from the interview:
And that was the same condition in 2012 and I wrote Deja Vu All Over Again and so forth.
So the point is we do vary our degree of aggressiveness and defenseness. We vary our degree of fundraising, how much money we should have under management.
Clearly when the opportunities are better we should have more money. When the opportunities are less good we should have less.
And I think that’s an important thing that distinguishes OakTree is that we’re willing to have less when it’s appropriate.
Today I’m in a fairly normal posture except increasing my aggressiveness. I think that the conditions for the bargain hunter, for the lender, for the asset buyer today are better than they have been since the global financial crisis, which ended in 2008. We’ve been… tough times for the bargain hunter for the last 14 years.
I think we’re in a better situation today so I would increase my level of aggressiveness.
You can watch the entire discussion here:
For all the latest news and podcasts, join our free newsletter here.
Don’t forget to check out our FREE Large Cap 1000 – Stock Screener, here at The Acquirer’s Multiple: