Alphyn Capital Management Sold Its Stake in Oaktree Specialty Lending Corporation (OCSL)

Alphyn Capital Management, an investment management firm, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Master Account of the fund returned 12.4% net in the second quarter compared to 10.9% for the S&P 500 Index. As of the second quarter of 2025, the top ten holdings accounted for approximately 65% of the portfolio, and approximately 17% of the portfolio was held in cash. Market conditions remained volatile in Q2 due to ongoing tariff developments and evolving interest rate projections. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Alphyn Capital Management highlighted stocks such as Oaktree Specialty Lending Corporation (NASDAQ:OCSL). Oaktree Specialty Lending Corporation (NASDAQ:OCSL) is a business development company. The one-month return of Oaktree Specialty Lending Corporation (NASDAQ:OCSL) was 5.34%, and its shares lost 22.32% of their value over the last 52 weeks. On July 11, 2025, Oaktree Specialty Lending Corporation (NASDAQ:OCSL) stock closed at $14.41 per share with a market capitalization of $1.269 billion.

Alphyn Capital Management stated the following regarding Oaktree Specialty Lending Corporation (NASDAQ:OCSL) in its second quarter 2025 investor letter:

“I sold Oaktree Specialty Lending Corporation (NASDAQ:OCSL) after management had to admit three new non-accruals, including a 50% write-down on investment in Pluralsight alongside smaller hits at AT Holdings and Dialyze. Those impairments reduced the net asset value and demonstrated that an almost 80% first-lien book can still experience credit pressure, leaving earnings flat and my expected risk-adjusted return below the hurdle I set for core holdings. Management then waived $3.2 million of incentive fees, boosting net investment income by a penny per share to maintain the dividend intact. I appreciate that shareholder-minded step, but it also points to a thinner earnings cushion if base rates drift lower.”

A close-up shot of a banker, looking confidently at his/her laptop, with stacks of papers and a toy credit card in the background.

Oaktree Specialty Lending Corporation (NASDAQ:OCSL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held Oaktree Specialty Lending Corporation (NASDAQ:OCSL) at the end of the first quarter, which was 15 in the previous quarter. While we acknowledge the risk and potential of OCSL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OCSL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Oaktree Specialty Lending Corporation (NASDAQ:OCSL) and shared Alphyn Capital Management’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.