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Stock impact report

How to bust myths about private investments, per Morningstar [Yahoo! Finance]

Blue Owl Capital Inc. Class A (OWL) 
Company Research Source: Yahoo! Finance
To effectively invest in private vehicles, financial advisors and clients must avoid buying into common myths about their returns and correlation with public funds, a Morningstar study said. So-called semiliquid investment assets such as private equity, private credit, venture capital, real estate and other alternative vehicles require horizons of at least seven to 10 years and careful scrutiny of any managers' claims that higher returns will justify their bigger expenses, the independent research firm said in the report . Released last month, the research came out a week before Blue Owl Capital announced it would cease filling investor redemption requests for one of its private credit funds ahead of the complete drawdown of the vehicle's assets. It was the latest cautionary signal about the "democratization" of private investments Morningstar's study argued that, as investors and advisors consider asset managers' sales pitches, they should keep in mind that, for example, private Show less Read more
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