People Are Worried About Blue Owl Liquidity
Also AI disruption trades, the tariff ruling and investment banking hours.
In 2018, David Einhorn’s hedge fund, Greenlight Capital, was having a run of disappointing performance. Some investors wanted to take their money back, but they couldn’t: During happier times, Greenlight had imposed pretty strict limits on withdrawals. The investors complained; one of them told the Wall Street Journal that Greenlight’s “liquidity terms are onerous and out of the norm today,” and that “investors would be more comfortable with those terms if the returns were better.”
I argued that this had it exactly backwards: