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David Einhorn’s Greenlight Capital Builds a Large Position in Oaktree Capital (OAK)

David Einhorn’s Greenlight Capital recently disclosed in a 13G filing that it had 1.68 million share position in Oaktree Capital Group LLC (NYSE: OAK), a global investment management firm focused in alternative markets. Greenlight Capital, which is a long-short value-oriented hedge fund, now has a 5.5% stake in OAK.

On Thursday, Oaktree released its financial results for the first quarter ended March 31, 2012. The Los Angeles, California-based company reported first-quarter segment revenue of $318.3 million, which included $191.3 million in management fees.

OAK’s management fees benefited from close-end funds that began since March 2011 in the distressed debt, real estate and European principal investment strategies.

During the first quarter of 2012, Oaktree had a first closing for Oaktree Opportunities Fund IX L.P., with $1.2 billion in committed capital. The Oaktree Real Estate Opportunities Fund V L.P. reached its final committed capital level of $1.3 billion during the first quarter of 2012.

At the end of the first quarter of 2012, Oaktree’s assets under management totaled $77.9 billion, up from $74.9 billion at the end of December 31, 2011.

Howard Marks, Chairman of Oaktree Capital Group, said that the first quarter demonstrated the ability of OAK’s business to generate meaningful cash earnings and quarterly distributions and at the same time to add significantly to accrued incentives and raise capital for future deployment. Marks said that OAK’s diverse investment strategies and the large proportion of its assets that consists of liquid securities enabled the company to capitalize on opportunities both to invest and to sell in strong markets.

Oaktree Capital shares had ended 1.01% lower in Thursday’s trading session. The stock is down more than 3% this year.


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