The High-Yield Stocks the Smart Money Is Buying Right Now

Benzinga_recent_news05-25 01:33

There is a principle I have followed for 30 years in this business. When the smartest credit team on the planet starts aggressively buying a beaten-down asset class they understand better than anyone ...

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When the smartest credit team on the planet starts aggressively buying a beaten-down asset class they understand better than anyone ...</p>\n\n<a href=\"https://www.benzinga.com/opinion/26/05/52763980/the-high-yield-stocks-the-smart-money-is-buying-right-now\">Source Link</a>\n\n</div>\n","source":"benzinga_recent_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The High-Yield Stocks the Smart Money Is Buying Right Now</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe High-Yield Stocks the Smart Money Is Buying Right Now\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-05-25 01:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/opinion/26/05/52763980/the-high-yield-stocks-the-smart-money-is-buying-right-now><strong>Benzinga_recent_news</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>There is a principle I have followed for 30 years in this business. When the smartest credit team on the planet starts aggressively buying a beaten-down asset class they understand better than anyone ...</p>\n\n<a href=\"https://www.benzinga.com/opinion/26/05/52763980/the-high-yield-stocks-the-smart-money-is-buying-right-now\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"MSDL","symbol_name":"Morgan Stanley Direct Lending Fund","start_time":0,"source_url":"https://www.benzinga.com/opinion/26/05/52763980/the-high-yield-stocks-the-smart-money-is-buying-right-now","article_id":"2638473304","we_media_id":null,"thumbnails":["https://cdn.benzinga.com/cdn-cgi/image/width=240,dpr=2,format=auto,quality=85/files/images/story/2026/05/24/Fear-Of-Smarter-Machines.jpeg"],"rights":{"source":"benzinga_recent_news","url":"https://www.benzinga.com/opinion/26/05/52763980/the-high-yield-stocks-the-smart-money-is-buying-right-now","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2638473304","pubTimestamp":1779643980,"columns":[],"sourceInfo":{"source_id":"benzinga_recent_news","name":"Benzinga"},"weMediaInfo":null,"summary":"Smart credit team Ares Mgmt bought discounted BDCs aggressively in Q1 2026. They're not guessing but expressing conviction in 17 positions.","collect":0,"end_time":0,"defaultTopTitle":"benzinga.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"MSDL":"Morgan Stanley Direct Lending Fund","GBTG":"Global Business Travel Group, Inc.","LU2360032135.SGD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (SGDHDG) INC","IE00BN8TJ469.HKD":"FTGF CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A\" (HKD) INC","HTGC":"海格投资","LU2125154778.USD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (USD) INC","BK4585":"ETF&股票定投概念","ARKO":"ARKO Corp","OTF":"Blue Owl Technology Finance Corp","IE00BBT3K403.USD":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC","FSK":"FS KKR Capital","MSIF":"MSC Income Fund Inc","BK4164":"特殊金融服务","LU2125154935.USD":"ALLSPRING (LUX) WF GLOBAL EQUITY ENHANCED INCOME \"I\" (USD) INC","BK4135":"资产管理与托管银行","ARCC":"阿瑞斯","BK4588":"碎股","BK4214":"汽车零售","BK4142":"酒店、度假村与豪华游轮","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus"},"translate_title":"聪明的资金现在正在购买的高收益股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MSDL":1,"MSIF":1,"OTF":1,"HTGC":1,"ARKO":1,"ARCC":1,"FSK":1,"GBTG":1},"content_text":"There is a principle I have followed for 30 years in this business. When the smartest credit team on the planet starts aggressively buying a beaten-down asset class they understand better than anyone alive, you do not sit on your hands and debate whether the timing is perfect.\nYou take notes, you do your homework, and you act.\nHere’s exactly what they bought, what they sold, and why.\nAres spent the first quarter buying Business Development Companies like the market was having a clearance sale, which frankly it was. \nThe biggest move by percentage was Morgan Stanley Direct Lending (NYSE:MSDL), where they added 312% to the position, nearly quadrupling their stake at an average price of $16.19, a name now trading at $15.09. \nNext came Hercules Capital (NYSE:HTGC), where they added 285%, bringing the position to 776,606 shares at an average cost of $17.09 against a current price of $15.34. That is a 10% discount to where they were buying. \nMSC Income Fund (NYSE:MSIF) was added to by 40% at an average of $15.05, now at $11.80.\nFS KKR Capital (NYSE:FSK) saw an 18.8% addition. \nBlue Owl Technology Finance (NYSE:OTF) got an 18% addition.\nAres Capital Corporation (NASDAQ:ARCC) itself got a 16% addition at an average of $19.24. \nSave $500 on a Full Year of Benzinga Pro\nFor Memorial Day, we’re taking $500 off Benzinga Pro’s annual plan. Find the setups you actually trade, hear the move before the headline lands, and never get blindsided by an earnings print mid-position again. Click the link below to secure your $500 discount before Monday. Save $500 on Benzinga Pro Today\nCount them up. \nThat is 17 separate BDC or direct lending positions where Ares either added meaningfully or initiated outright in Q1 2026. Every single one of them is trading below where Ares was buying. \nThe sector has gotten cheaper since the quarter ended, which means the opportunity has only improved. When the firm that built this industry buys this broadly and this aggressively across the sector, they are not guessing. \nThey are expressing a conviction.\nThis is the Drexel-Apollo-Ares lineage doing exactly what it has always done best, finding a debt instrument it understands and sizing into it at a level that reflects real conviction. Integer is a medical device component manufacturer with a solid underlying business. \nAres looked at the capital structure and liked what they saw.\nBoth are BDCs. Both have gotten cheaper since Ares bought them. Both are now considerably more interesting.\nWhen a firm with $407 billion in credit assets under management looks at a BDC and decides to sell every single share, that is information worth having. I would not be running to buy NMFC on the dip.\nThis is a special situation rather than a market call, and Ares is not going anywhere on it. They have owned it since Q2 2023 and this is a controlled company situation that will play out on its own timeline. \nAmong the other existing positions, Global Business Travel Group (NYSE:GBTG) is the standout performer, up 23% year to date and 61% month to date. \nARKO Corp. (NASDAQ:ARKO) is up nearly 70% year to date. \nThe absence of additions in those names tells you something about the conviction level behind each one.\nAres Management is one of the most disciplined credit organizations ever assembled. They built their reputation by being right about credit quality over long periods of time through multiple cycles. \nTheir Q1 2026 activity is sending a clear message. \nThey believe BDC valuations have overshot to the downside. They believe the direct lending asset class, the one they built, remains fundamentally sound despite the pressure on book values and net asset values that the sector has seen. \nAnd they are backing that belief with real capital across a broad enough set of names to make clear this is a thesis, not a coincidence.\nSeveral of the names they were buying in Q1 are now trading even cheaper than where they bought them. GSBD is at $8.86 against their $10.58 average. FSK is at $10.78 against their $18.98 average. OTF is at $10.63 against their $14.40 average. RWAY is at $6.32 against their $9.91 average. \nThe portfolio has moved against them since quarter end, which in the language of deep value investing means the setup has improved, not deteriorated.\nMy framework has always been the same. Find an asset class with real fundamental value being temporarily repriced by sentiment rather than credit reality. \nConfirm that the smartest operators in the space are buying rather than running. \nMake sure the yield compensates you adequately while you wait for the market to come to its senses. \nAll three boxes are checked here. The next step is up to you.\nImage via Shutterstock\nTo add Benzinga News as your preferred source on Google, click here.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.42.2","shortVersion":"4.42.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2638473304","isCrawlerRequest":true}