The South African stock billionaire Howard Marks is cutting
Billionaire Howard Marks’ Oaktree Capital Management continued to reduce its portfolio in 2024, cutting its stake in over 30 companies, including one South African company.
Marks cut a significant number of stocks over the last few years, going from 170 stocks at the start of 2023 to only 56 by the end of 2024.
This was revealed in Oaktree’s 13F filing with the US Securities and Exchange Commission, a quarterly requirement for investors managing over $100 million (R1.84 billion).
Marks, a prominent American investor, author, and co-founder of Oaktree Capital Management, is highly regarded for his investment memos, which are widely followed by analysts and market participants.
His book, The Most Important Thing: Uncommon Sense for the Thoughtful Investor, is considered essential reading for investors.
A firm believer in value investing, Marks emphasises risk management and shareholder rights. His investment philosophy is deeply rooted in analysing market cycles and adopting a contrarian approach when lucrative opportunities emerge.
Born in New York City in 1946, Marks pursued his studies at the Wharton School of the University of Pennsylvania and later at the University of Chicago Booth School of Business.
Following his education, he launched his career as a research analyst at TCW Group before co-founding Oaktree Capital Management in 1995.
Oaktree is a globally recognised investment firm specialising in high-yield bonds and convertible securities, and it has established itself as the world’s leading investor in distressed assets.
Marks remains a strong advocate of value investing and risk control, believing that effective risk management is key to long-term financial success.
This risk-conscious approach is embedded in Oaktree’s investment strategy, which focuses on delivering steady, risk-adjusted returns over time.
Additionally, Marks is vocal about the importance of shareholder rights and often stresses the necessity of aligning management incentives with shareholder interests.
Under his leadership, Oaktree has enjoyed considerable success, with funds managed by the firm achieving an average long-term return of 19% annually. Marks has amassed a personal net worth of $2.2 billion (R40.59 billion).
Oaktree Capital Management’s portfolio
By the end of 2024, Oaktree’s portfolio comprised 56 stocks with a total value of $4.48 billion (R82.66 billion), reflecting a sharp reduction from its early 2023 holdings of 170 stocks worth $7.29 billion (over R130 billion).
Despite this contraction, Oaktree still manages a sizable portfolio compared to other high-profile investors, such as Warren Buffett’s Berkshire Hathaway or Bill Ackman’s Pershing Square Capital Management.
The firm’s portfolio remains highly active. In the fourth quarter of 2024 alone, Oaktree acquired five new stocks, sold seven, trimmed its stake in 26 companies, and increased its position in four others.
One notable adjustment was a 1.77% reduction in its stake in South African mining company AngloGold Ashanti.
Despite this reduction, AngloGold Ashanti still represents over 2.86% of Oaktree’s portfolio, with a market value of $128.27 million (R2.37 billion).
As of the final quarter of 2024, Oaktree’s top holding remained Torm, a Danish shipping company specialising in product tankers.
Other major investments included Expand Energy, a US-based natural gas exploration and production firm, and Garrett Motion, a Swiss manufacturing company.
Below is an overview of Oaktree’s top 20 holdings as of 31 December 2024.
| Company | Percent of portfolio | Change | Value |
|---|---|---|---|
| Torm Plc | 17.41% | No change | $779,886,000 |
| Expand Energy Corp. | 15.42% | Add 0.97% | $690,615,000 |
| Garrett Motion Inc. | 8.89% | No change | $398,068,000 |
| Sitio Royalties Corp A | 5.54% | No change | $248,096,000 |
| Infinera Corp. | 3.69% | No change | $165,402,000 |
| SunOpta Inc. | 3.56% | No change | $159,425,000 |
| AngloGold Ashanti Ltd. | 2.86% | Reduce 1.77% | $128,268,000 |
| Vista Oil & Gas, S.A.B. de C.V. | 2.77% | Reduce 8.39% | $124,105,000 |
| Runway Growth Finance Corp | 2.64% | No change | $118,145,000 |
| Indivior Plc | 2.50% | Reduce 8.28% | $112,004,000 |
| California Resources Corp. | 2.37% | No change | $106,206,000 |
| Liberty Global Ltd CL A | 2.05% | Add 20.61% | $91,925,000 |
| CBL & Associates Pptys Inc. | 1.97% | Reduce 24.97% | $88,381,000 |
| Cemex | 1.84% | Reduce 0.68% | $82,282,000 |
| Star Bulk Carriers Corp. | 1.79% | Reduce 5.93% | $80,336,000 |
| Talen Energy Corp | 1.78% | Reduce 43.07% | $79,908,000 |
| Kilroy Realty Corp. | 1.67% | No change | $74,833,000 |
| Freeport-McMoran Inc. | 1.50% | Reduce 27.31% | $67,135,000 |
| Vale SA | 1.42% | Reduce 12.33% | $63,793,000 |
| Sunrise Communicat Cl A | 1.39% | Buy | $62,071,000 |
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