** Alternative asset manager Blue Owl's shares OWL.N jump ~9% to $9.44 in morning trading

** OWL's two private credit funds post modest decline in redemption requests in Q2 vs Q1, offering an early sign that the worst of the redemption wave that hit the sector may be over

** Co caps redemptions in both funds at 5%; Investors asked to pull a combined $4.7 billion from the two private credit funds vs $5.4 billion in the prior quarter

** Wealthy investors have pulled billions of dollars from private credit funds this year amid concerns over weakening lending standards and fears that AI-driven disruption could hurt software companies that borrowed from direct lenders

** OWL's shares have lost ~37% YTD, including session moves

** Other alternative asset managers, including Ares ARES.N and KKR KKR.N, have also sold off sharply YTD, a rout that several analysts have described as overdone

** Earlier this week, brokerage Oppenheimer recommended investors sell investment banking stocks and redeploy the proceeds into alternative asset managers, arguing the recent sell-off has created an attractive buying opportunity