We came across a bullish thesis on Blue Owl Capital Inc. on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on OWL. Blue Owl Capital Inc.’s share was trading at $10.73 as of February 24th. OWL’s trailing and forward P/E were 145.91 and 15.43 respectively according to Yahoo Finance.
Blue Owl Capital Inc. operates as an alternative asset manager in the United States. OWL is increasingly being positioned as the “utility” of private markets, built not on high-beta dealmaking but on permanent capital, predictable fee streams, and the structural rise of private credit. With approximately $307 billion in assets under management and more than 90% of that capital locked in long-duration or permanent vehicles, the firm has created a revenue model that resembles a regulated utility more than a traditional private equity manager.
Trading near $12.30 as of mid-February 2026, the stock recently saw a large institutional investor sell January 2027 $8 puts, collecting premium while setting a break-even near $7.25 — implying a 35% margin of safety from current levels. The conviction behind that positioning reflects confidence in Blue Owl’s durable fee-related earnings, supported by 58%+ fee-related margins and record fundraising of $56 billion in 2025 alone.
A key growth driver is the firm’s expansion into private wealth channels, where dedicated products grew 66% year-over-year as individual investors increasingly seek yield beyond traditional 60/40 portfolios. Meanwhile, management has anchored the equity story with a fixed $0.92 annual dividend for 2026, equating to a 7%+ yield at current prices and potentially exceeding 11% if shares approached the $8 level.
In a yield-constrained environment, that income profile creates a structural valuation floor. The bullish thesis ultimately rests on the normalization of private credit as a secular shift, positioning Blue Owl Capital as a stable, compounding platform.
Previously, we covered a bullish thesis on BlackRock, Inc. (BLK) by Kroker Equity Research in February 2025, which highlighted its scale, diversified platform, inflows, and Aladdin-driven recurring revenue supporting growth. BLK’s stock price has appreciated by approximately 8.97% since our coverage. OppCost shares a similar view but emphasizes on Blue Owl Capital Inc.’s capital structure and private credit-led fee stability.
Blue Owl Capital Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held OWL at the end of the third quarter which was 40 in the previous quarter. While we acknowledge the risk and potential of OWL 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 OWL and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
