As an extension of Oaktree's highly successful Distressed Opportunities strategy, Value Opportunities offers an aggressive and opportunistic alternative, one designed to capitalize on changing market conditions
"When the environment is favorable for distressed debt, we have the flexibility to weight such investments more heavily," says Bruce Karsh, who has led Oaktree's Distressed Debt team since its inception. "When the supply is less plentiful, we will increase purchases of non-distressed value investments."
The strategy's broad focus allows the team to look at any level of the capital structure, and in value-oriented securities across developed markets, private placements, real estate, convertible securities and derivatives. In seeking bargain purchases, we favor obscure and out-of-favor opportunities and focus strongly on avoiding losses. We may use leverage, engage in shorting, and invest in stressed securities. We attempt at all times to emphasize holdings that provide liquidity.
The strategy's greatest strength is Oaktree's Distressed Debt group, with its vast experience, expertise in company valuation and access to value investing opportunities.