Blue Owl Capital: Bears Are In A Self-Imposed Virtual Reality As AUM Grows

Blue Owl Capital faces excessive short interest disconnected from improving fundamentals and record AUM growth. OWL's FPAUM and fee-related earnings are expanding, with dividend coverage expected to exceed 100% as $31.1 billion in AUM becomes fee-paying. Short interest is anchored in outdated credit-default fears, but OWL's durable capital base and lack of exposure to recent credit events reduce downside risk. OWL trades at a 12x FRE multiple, well below peers ARES and APO, offering substantial upside as sentiment and fundraising momentum recover.

Blue Owl Capital's ( OWL ) short interest is far too large for the fundamentals of the Manhattan-based asset manager, leaving space open for a return to actual reality that will drive the common shares higher.