We came across a bullish\u00a0thesis on Blue Owl Capital Inc. on R. Dennis\u2019s Substack by\u00a0OppCost. In this article, we will summarize the bulls\u2019 thesis on OWL. Blue Owl Capital Inc.’s share was trading at $10.73 as of February 24th. OWL\u2019s trailing and forward P\/E were 145.91 and 15.43 respectively according to Yahoo Finance.<\/p>\n Blue Owl Capital Inc.\u00a0operates\u00a0as an alternative asset manager in the United States.\u00a0OWL\u00a0is increasingly being positioned as the \u201cutility\u201d of private markets, built not on\u00a0high-beta\u00a0dealmaking 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.<\/p>\n 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 \u2014 implying a 35% margin of safety from current levels. The conviction behind that positioning reflects confidence in Blue Owl\u2019s durable fee-related earnings, supported by 58%+ fee-related margins and record fundraising of $56 billion in 2025 alone.<\/p>\n A key growth driver is the firm\u2019s 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.<\/p>\n In a yield-constrained environment, that income profile creates a structural valuation floor. The bullish thesis\u00a0ultimately rests\u00a0on the normalization of private credit as a secular shift, positioning Blue Owl Capital as a stable, compounding platform.<\/p>\n Previously, we covered a\u00a0bullish thesis<\/b>\u00a0on 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.<\/strong>\u00a0OppCost\u00a0shares a similar view but emphasizes on Blue Owl Capital Inc.\u2019s capital structure and private credit-led fee stability.<\/p>\n Blue Owl Capital Inc.\u00a0is\u00a0not\u00a0on our list of the 30 Most Popular Stocks Among Hedge Funds<\/b>. As per our database,\u00a035\u00a0hedge fund portfolios held\u00a0OWL\u00a0at the end of the\u00a0third\u00a0quarter\u00a0which was\u00a040\u00a0in the previous quarter.\u00a0While we acknowledge the risk and potential of\u00a0OWL\u00a0as an investment, our\u00a0conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter\u00a0time frame. If you are looking for an AI stock that is more promising than\u00a0OWL\u00a0and that has 10,000% upside potential, check out our report about this\u00a0cheapest AI stock<\/b>.<\/b><\/p>\n<\/p><\/div>\n<\/div>\n<\/div>