Story
Investing through Lehman: $450M a week when the world looked like it was ending
After Lehman collapsed in September 2008, Oaktree had no data or precedent, only supposition. They reasoned that if the financial world melted down, investing wouldn't matter, but if it didn't and they sat out, they'd have failed. So Bruce Karsh deployed $7 billion in one quarter.
“And what we said is that if the financial world melts down and we invest, doesn't matter. But if we don't invest and the financial world doesn't melt down, then we didn't do our job. So we have to do it. And we invested on that basis. And Bruce, who runs those funds, invested an average of $450 million a week for 15 weeks, $7 billion in a quarter.”
Story
Investing through Lehman: $450M a week when the world looked like it was ending
After Lehman collapsed in September 2008, Oaktree had no data or precedent, only supposition. They reasoned that if the financial world melted down, investing wouldn't matter, but if it didn't and they sat out, they'd have failed. So Bruce Karsh deployed $7 billion in one quarter.
“And what we said is that if the financial world melts down and we invest, doesn't matter. But if we don't invest and the financial world doesn't melt down, then we didn't do our job. So we have to do it. And we invested on that basis. And Bruce, who runs those funds, invested an average of $450 million a week for 15 weeks, $7 billion in a quarter.”
Story
LTCM panic: "Now go back to your desk and do your job"
During the 1998 Long-Term Capital Management collapse, a young Oaktree portfolio manager told Marks everything was melting down. Marks heard him out, then sent him back to work. His point: a battle hero isn't unafraid, he acts despite the fear.
“And especially with Long-Term going under, one of the skilled portfolio managers, young portfolio managers at Oaktree came to me. He says, I think this is it. I think we're melting down. It's all over. And I said, well, tell me your concerns. And he laid out his concerns. And I said, okay, I understand it. Now go back to your desk and do your job. You know, a battle hero is not somebody who's unafraid. It's somebody who's afraid but does it anyway.”
Story
LTCM panic: "Now go back to your desk and do your job"
During the 1998 Long-Term Capital Management collapse, a young Oaktree portfolio manager told Marks everything was melting down. Marks heard him out, then sent him back to work. His point: a battle hero isn't unafraid, he acts despite the fear.
“And especially with Long-Term going under, one of the skilled portfolio managers, young portfolio managers at Oaktree came to me. He says, I think this is it. I think we're melting down. It's all over. And I said, well, tell me your concerns. And he laid out his concerns. And I said, okay, I understand it. Now go back to your desk and do your job. You know, a battle hero is not somebody who's unafraid. It's somebody who's afraid but does it anyway.”