CHENGDU, Dec. 6 (NBD) --  Risk management has always been the investment philosophy for over 30 years, John Frank, Vice Chairman of Oaktree Capital Management, said in an exclusive interview with NBD at Caixin-YunFeng Investment Forum held last week in Beijing.

He also added that as an accredited investor, Oaktree takes it most important to comprehensively analyze potential targets in details and understand their nature. This is to ensure the expected safety margins for any investment. In addition, the market is affected by investment sentiment fluctuation, and Oaktree insists long-term business based on market cycles. 

As for the uncertainty of macroscopic environment across globe, Frank pointed out that look back and we may find that debt in the market has created business chances. Leverage buyout emerged popular last century, and now we find excess in property market and stagnancy of bulk commodities. His advice for investors is to stay skeptical and not to get blinded by short-term impact. 

“In terms of opportunities, I would recommend investors to give thoughts to European banking crisis, property industry, European and U.S. direct loans owing to regulation amendments, U.S. Infrastructure to be promoted especially after President-elect Donald Trump taking office, ” said John Frank. 

Headquartered in Los Angeles, California, U.S., Oaktree Capital Management is world’s largest investor in non-performing assets and well-known for its activities in this domain. 

Editor: Zeng Yunheng