Blue Owl Capital Inc. (NYSE:OWL) is one of the stocks mentioned during the show, as we cover everything Jim Cramer said about the market. A caller asked for Cramer’s opinion on the stock, and he replied:

Okay, Blue Owl, if you want to own in that world, that private equity, private credit world, I have to suggest you to buy Blackstone. It yields 5%. It’s better run. I think you just go with Blackstone and you’ll do better.

A laptop and a computer monitor display a detailed stock market technical analysis chart. Photo by Jakub Zerdzicki on Pexels

Blue Owl Capital Inc. (NYSE:OWL) provides alternative asset management and private financing solutions, including direct lending, credit products, and real estate investments. Cramer mentioned the stock during the February 23 episode and said:

… Starting last year, one of Blue Owl’s oldest BDCs, a private one called Blue Owl Capital Corp II, ran into trouble. These things typically have gating rules about how much of the fund can be withdrawn in any given quarter. For Blue Owl Capital II, it’s a 5% limit on redemptions, and they hit that limit in both the second and third quarter. Now that is worrisome. Then, in November, Blue Owl came up with a solution for the redemption problem. They plan to merge Blue Owl Capital II with one of their publicly traded BDCs, Blue Owl Capital Corp, so investors who wanted out could simply sell their shares in the open market. But, and this is a big but, enough for this Sir Mix-a-Lot seal of approval, they also are going to ban redemptions from Blue Owl Capital II until the merger’s closed. Worse, the publicly traded BDC, Blue Owl Capital Corp was already trading at roughly 20% discount to its net asset value, what the company says the investments are worth.

While we acknowledge the potential of OWL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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