Hello everyone welcome to Industry Focus the podcast that dives into a different

sector of the stock market every day. You're listening to the Financials Edition

taped today on Monday April 24th 2017. My name is Gabby Lapera, and joining me on Skype is Jordan Wathan, an exotic

financials expert. Hey Jordan, how's it going?

Hi Gabby, I like the intro.

Thanks.

Thanks. I just realize that that sounds way more risque than what I actually meant

which is that you know a lot about weird financial businesses like businesses that have strange structures

and esoteric ways of making money which is what today's show is about which is why I

introduced you as an exotics expert.

But anyway, today we're going to be talking about alternative asset managers.

If you are already lost, that is totally okay.

We're going to do our best to explain everything or really at least

something because today's question is actually based on on some feedback that we

got from a listener at the University of Chicago.

I forgot to ask his permission to use his name so we won't, but thank you so much for the great

questions. Good luck with your junior year. That is always a long hard slog. This is what the listener had to say.

I wanted to hear your thoughts on investing in alternative asset management firms,

i.e. Oak Tree, KKR, Blackstone, many have claimed that these firms are trading at a

discount for a number of reasons. Their business models and financial statements

are egregiously difficult to understand, frustrating many retail and institutional

investors. There is a drastic variability in yearly results,

...