Billionaire Howard Marks continues portfolio slashing spree
Billionaire Howard Marks’ Oaktree Capital Management continued to reduce its portfolio in 2024, going from 170 stocks at the start of 2023 to only 51 by the end of this year’s second quarter.
This was revealed in Icahn’s 13F filing with the U.S. Securities and Exchange Commission, a quarterly requirement for investors managing over $100 million (R1.79 billion).
Marks, an American investor, author, and co-founder of Oaktree Capital Management, is widely recognised for his insightful investment memos, which are highly regarded by investors and analysts alike.
His book, The Most Important Thing: Uncommon Sense for the Thoughtful Investor, has become a must-read in the investing world.
A strong advocate of value investing, Marks emphasises the importance of risk management and is also a vocal proponent of shareholder rights. His approach is rooted in understanding market cycles and taking a contrarian stance when opportunities arise.
Born in New York City in 1946, Marks attended the Wharton School at the University of Pennsylvania and the University of Chicago Booth School of Business.
After completing his education, he started his career as a research analyst at TCW Group and later co-founded Oaktree Capital Management in 1995.
Oaktree is a global investment firm specialising in high-yield bonds and convertible securities. It is also the world’s largest investor in distressed securities.
A strong advocate of value investing, Marks emphasises the importance of risk management. He believes that understanding and controlling risk is fundamental to long-term investment success.
This philosophy is central to Oaktree’s operations, where the focus is on achieving consistent, risk-adjusted returns.
Marks is also a vocal proponent of shareholder rights, often highlighting the importance of aligning management interests with those of shareholders.
The firm has achieved significant success, with funds managed by Marks delivering long-term returns of 19% annually. His personal net worth stands at $2.2 billion (R39.46 billion).
Through his leadership at Oaktree, Marks has earned a reputation as one of the most respected investors in the industry.
Oaktree Capital Management’s portfolio
In the second quarter of 2024, Oaktree had a portfolio of around 51 stocks valued at $5.24 billion (R93.96 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.
In the first quarter of 2023, its portfolio held about 170 stocks and was valued at $7.29 billion (R130.66 billion).
The portfolio is very active. In Q2 2024, the firm bought four new stocks, sold 10, reduced its stake in 13, and added to its stake in 17 companies.
Notably, Oaktree added 5.48% to its stake in South African miner AngloGold Ashanti, which now comprises over 3% of the firm’s portfolio with a value of $159.05 million (R2.85 billion).
In Q2 2024, the firm’s top three holdings remained the same, with Torm, a Danish shipping company that owns and operates product tankers, being its biggest investment.
The next biggest investments were Chesapeake Energy, an oil and natural gas exploration and production company, and Garrett Motion, a Swiss manufacturer.
Below is an overview of Oaktree’s top 20 holdings on 30 June 2024.
| Stock | % of portfolio | Recent activity | Value |
| Torm Plc | 32.88 | Reduce 13.52% | $1,724,284,000 |
| Chesapeake Energy | 10.77 | Reduce 1.62% | $564,718,000 |
| Garrett Motion Inc. | 7.22 | No change | $378,671,000 |
| Sitio Royalties Corp A | 5.82 | No change | $305,398,000 |
| Star Bulk Carriers Corp. | 3.70 | Add 30.43% | $194,221,000 |
| AngloGold Ashanti Ltd. | 3.03 | Add 5.48% | $159,045,000 |
| Infinera Corp. | 2.92 | No change | $153,318,000 |
| Vale SA | 2.72 | Add 10.73% | $142,453,000 |
| Runway Growth Finance Corp | 2.42 | Reduce 30.42% | $126,769,000 |
| Freeport-McMoran Inc. | 2.24 | Reduce 18.69% | $117,510,000 |
| Vista Oil & Gas, S.A.B. de C.V. | 2.17 | Add 2.62% | $113,869,000 |
| SunOpta Inc. | 2.13 | No change | $111,926,000 |
| CBL & Associates Pptys Inc. | 1.79 | Reduce 0.18% | $93,640,000 |
| Cemex | 1.79 | Add 5% | $93,863,000 |
| Banco Bradesco | 1.49 | Reduce 0.67% | $77,978,000 |
| JD.com Inc. | 1.39 | Add 27.16% | $72,887,000 |
| Indivior Plc | 1.34 | Add 34.08% | $70,430,000 |
| Liberty Global Ltd CL A | 1.26 | Buy | $66,263,000 |
| Petroleo Brasileiro | 1.25 | Reduce 11.63% | $65,299,000 |
| Kilroy Realty Corp. | 1.10 | No change | $57,665,000 |
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