Matt Levine’s Money Stuff: Worries About Blue Owl Liquidity

Blue Owl

In 2018, David Einhorn’s hedge fund, Greenlight Capital, was having a run of disappointing performance. Some investors wanted to take their money back, but they couldn’t: During happier times, Greenlight had imposed pretty strict limits on withdrawals. The investors complained; one of them told the Wall Street Journal that Greenlight’s “liquidity terms are onerous and out of the norm today,” and that “investors would be more comfortable with those terms if the returns were better.”

I argued that this had it exactly backwards:

Well but the returns aren’t better! And the investors would no doubt be quite comfortable ...