3: Risk First: The Oaktree Capital Guide to Asymmetric Risk-Reward

Introduction: Introduce the concept of asymmetric risk-reward and its importance in investing. Howard Marks on Risk: Explain his philosophy of prioritizing risk control over chasing high returns. Identifying Asymmetric Opportunities: Discuss how to find investments with limited downside and significant upside potential. Structuring Asymmetric Trades: Detail how to structure trades to create a favorable risk-reward profile. The Role of Margin of Safety: Explain the concept of margin of safety and how it contributes to asymmetric returns. Case Study: Analyze a trade where Oaktree Capital achieved an asymmetric return. Conclusion: Summarize the key principles of risk-first investing.