An agreement on expectations and clear communications are really fundamental, in my opinion, to a successful relationship in this business. And I can't imagine that there's a client out there who doesn't expect Oaktree to behave in a risk controlled manner. But you know, the point is we moved forward. We stayed fully invested, but with great selectivity and an emphasis on caution and margin of safety. Our closed end funds produced respectable non penalty absolute returns. They just weren't up to what we had done in previous environments.
If a key to personal happiness is low expectations, then a key to investing may be realistic expectations. Howard Marks is the co-founder and co-chairman of Oaktree Capital Management. Motley Fool Director of Small Cap Research Bill Mann caught up with Marks to discuss: - Why higher interest rates created a “Sea Change” for investors - China’s economic miracle, and its impact on inflation - Lessons from the era of easy money - What life insurance companies can teach investors about risk
To read Howard Marks' latest memo, click here: https://www.oaktreecapital.com/insights/memo/sea-change Host: Bill Mann Guest: Howard Marks Producer: Ricky Mulvey Engineers: Rick Engdahl, Annie Franks
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