Howard Marks is an American investor, author, and co-founder of Oaktree Capital Management, a global investment firm.
He is known for his investment memos, which are widely read by investors and analysts. Marks is a proponent of value investing and emphasizes the importance of risk management. He is also a strong advocate for shareholder rights.
Marks was born in New York City in 1946. He attended the Wharton School of the University of Pennsylvania and the University of Chicago Booth School of Business.
After graduating from business school, Marks worked as a research analyst at TCW Group. In 1995, he co-founded Oaktree Capital Management.
Oaktree is a global investment firm that invests in high-yield bonds and convertible securities and is the world’s largest investor in distressed securities.
The firm has been very successful, and funds led by Marks have produced long-term returns of 19% per year. His personal net worth is $2.2 billion.
Through his work at Oaktree, Marks has become one of the most respected investors in the world.
Oaktree Capital Management’s portfolio
Oaktree has a massive portfolio of around 113 stocks and is valued at $6,351,586,000. However, this is a significant decrease from its Q1 2023 portfolio, which held about 170 stocks and was valued at $7,289,053,000.
The portfolio is very active. In Q2 2023, the firm bought seven new stocks – though none constitute more than 1% of its portfolio – and sold many others.
One of the firm’s biggest moves in the first quarter was adding 1126.87% to its stake in Garrett Motion, a Switzerland-based manufacturing company which now comprises 5.25% of Oaktree’s portfolio.
Of local relevance is Oaktree’s 15.29% reduction in its stake in South Africa-based AngloGold Ashanti.
In Q2 2023, the firm saw the first change to its top three holdings in the past three quarters. Previously, these three companies were Torm Plc, Chesapeake Energy and Vistra.
Now, the firm’s top three holdings are Torm Plc, Chesapeake Energy and Star Bulk Carriers Corp, a Greece-based global shipping company.
Below is an overview of Oaktree’s top 20 holdings in Q2 2023 –
|Stock||Percentage of Portfolio||Activity||Value|
|TRMD – Torm Plc||20.38%||No change||$1,294,694,000|
|CHK – Chesapeake Energy||9.68%||Reduce 14.33%||$615,048,000|
|SBLK – Star Bulk Carriers Corp.||7.26%||No change||$461,394,000|
|VST – Vistra Corp.||7.03%||Reduce 26.82%||$446,250,000|
|STR – Sitio Royalties Corp A||5.35%||No change||$339,806,000|
|GTX – Garrett Motion Inc.||5.25%||Add 1,126.87%||$333,707,000|
|RWAY – Runway Growth Finance Corp||4.09%||No change||$260,025,000|
|STKL – SunOpta Inc.||2.18%||No change||$138,658,000|
|NMIH – NMI Holdings||1.99%||No change||$126,518,000|
|ALLY – Ally Financial Inc.||1.96%||Reduce 24.89%||$124,246,000|
|INFN – Infinera Corp.||1.91%||No change||$121,597,000|
|PBR – Petroleo Brasileiro||1.71%||Reduce 2.43%||$108,792,000|
|BBD – Banco Bradesco||1.68%||Add 44.71%||$106,621,000|
|FCX – Freeport-McMoran Inc.||1.65%||Reduce 2.41%||$105,112,000|
|VALE – Vale SA||1.64%||Reduce 7.05%||$104,448,000|
|CX – Cemex||1.62%||No change||$102,582,000|
|AU – AngloGold Ashanti Ltd.||1.57%||Reduce 15.29%||$99,727,000|
|IBN – ICICI Bank Ltd.||1.45%||Reduce 2.14%||$91,904,000|
|CBL – CBL & Associates Pptys Inc.||1.38%||No change||$87,807,000|
|FYBR – Frontier Communications Parent Inc.||1.17%||No change||$74,240,000|