Blue Owl Technology Finance: The 32% Discount To NAV Is Simply Not Justified

The Asian Investor 33.01K Followers Follow Summary Blue Owl Technology Finance offers a compelling 32% discount to NAV, driven by AI disruption fears and OBDC's merger missteps. OTF's portfolio is tech-focused, with 97% variable-rate loans and a best-in-class 0.1% non-accrual ratio, signaling strong asset quality. Dividend coverage is weaker than peers, but OTF continues regular and special dividends, supported by undistributed taxable income. I see the current NAV discount as unjustified and expect a gradual revaluation as OTF's performance and asset quality remain robust. Getty Images In my work on Trinity Capital ( TRIN ), I mentioned that it makes sense to prioritize those private credit platforms as investments that have a steady dividend record and that are managing to grow their portfolios and This article was written by The Asian Investor 33.01K Followers Follow I am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon. Analyst’s Disclosure: I/we have a beneficial long position in the shares of OTF, HTGC, TRIN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.