In an interview with Bloomberg, Howard Marks, a billionaire investor, said that pandemic-afflicted areas may be worth another look because Delta variant fears have scared away investors.
Undervaluation could occur in sectors like hotels, resorts and airlines as well as sports and entertainment.
Marks believes that market excesses can give level-headed investors an advantage.
Subscribe to our daily newsletter 10 Things Before The Opening Bell.
In an interview with Bloomberg, Howard Marks, a billionaire investor, said that pandemic-afflicted areas may be worth another look since Delta variant fears have scared away investors from the travel and leisure industry.
Marks, who co-founded Oaktree Capital Management, the largest distressed debt firm in the world, said that sectors like hotels, resorts and movie theaters, as well as concerts, "are the types of things people are concerned about."
Bloomberg reported that he said, "And worrying transforms to lower asset prices."
Oaktree, Marks's investment fund, lends money to companies in financial distress. This is because it believes that there are bargains that can be found even in areas that more risk-averse investors may avoid. Oaktree has been exploring "rescue financing" this year. This is when Oaktree lends cash to companies on the verge of default or bankruptcy.
Marks stated that it is difficult to find worthwhile purchases in a low-yielding world. He suggested that looking overseas may be necessary for finding "hidden jewels".
Marks is well-known in the financial industry for his investor memos. He argues that market excesses can give level-headed investors an advantage.
He stated that "If you want your market to be understood, you must understand the motivations of its people, because that's all it is." In July.
Despite this, it is difficult to earn excess returns in low interest rates, regardless of investor's insight or skill.
Marks stated that the entire world is living in low returns. The question is how to behave in such a situation.
