Billionaire Howard Marks trims portfolio
Billionaire Howard Marks’ Oaktree Capital Management significantly slimmed down its portfolio in 2023, going from 170 stocks to just 67.
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.
Like many other superinvestors, 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
In the fourth quarter of 2023, Oaktree had a portfolio of around 67 stocks valued at $5.39 billion.
While this is still a large portfolio compared to other super-investors like Warren Buffett’s Berkshire Hathaway or Bill Ackman’s Pershing Square Capital Management, it is a significant decrease from its Q1 2023 portfolio, which held about 170 stocks and was valued at $7.29 billion.
The portfolio is very active. In Q4 2023, the firm bought seven new stocks, sold 16, reduced its stake in 12, and added to its stake in 15 companies.
Notably, Oaktree added 8.22% to its stake in South African miner AngloGold Ashanti, which now comprises over 2% of the firm’s portfolio with a value of $109.80 million.
In Q4 2023, the firm’s top three holdings remained the same – Torm Plc, Chesapeake Energy and Garrett Motion, a Swiss manufacturing company.
Below is an overview of Oaktree’s top 20 holdings on 31 December 2023.
| Stock | % of portfolio | Recent activity | Value |
| TRMD – Torm Plc | 28.64 | Reduce 5.22% | $1,543,420,000 |
| CHK – Chesapeake Energy | 9.99 | No change | $538,585,000 |
| GTX – Garrett Motion Inc. | 7.91 | No change | $426,281,000 |
| STR – Sitio Royalties Corp A | 5.64 | No change | $304,105,000 |
| RWAY – Runway Growth Finance Corp | 3.86 | Reduce 21.67% | $208,131,000 |
| VALE – Vale SA | 2.77 | Add 8.11% | $149,082,000 |
| NMIH – NMI Holdings | 2.58 | Reduce 4.43% | $138,986,000 |
| SBLK – Star Bulk Carriers Corp. | 2.41 | Reduce 61.99% | $129,856,000 |
| FCX – Freeport-McMoran Inc. | 2.31 | Add 7.82% | $124,216,000 |
| BBD – Banco Bradesco | 2.23 | Add 8.15% | $120,157,000 |
| INFN – Infinera Corp. | 2.22 | No change | $119,583,000 |
| STKL – SunOpta Inc. | 2.10 | No change | $113,372,000 |
| AU – AngloGold Ashanti Ltd. | 2.04 | Add 8.22% | $109,803,000 |
| CX – Cemex | 2.01 | No change | $108,415,000 |
| CBL – CBL & Associates Pptys Inc. | 1.82 | Add 0.71% | $97,979,000 |
| PBR – Petroleo Brasileiro | 1.414 | Reduce 23.25% | $76,123,000 |
| KRC – Kilroy Realty Corp. | 1.37 | No change | $73,704,000 |
| IBN – ICICI Bank Ltd. | 1.34 | Add 8.61% | $72,304,000 |
| VIST – Vista Oil & Gas, S.A.B. de C.V. | 1.31 | Reduce 16.92% | $70,727,000 |
| INFY – Infosys Ltd. | 1.18 | Reduce 9.32% | $63,484,000 |
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