Howard Marks Oaktree Capital Management
Howard Marks is co-founder of Oaktree Capital Management, a leading firm in credit, distressed debt, and alternative credit strategies. He is equally well known for his widely read client memos on market cycles, risk, and investor psychology. Marks’s investing philosophy stresses second-level thinking, asymmetric risk/reward, and the importance of understanding where markets sit in the credit cycle.
Top Buys
| Rank | Stock | Value |
|---|---|---|
| 1 |
ORIG
Ocean Rig UDW Inc. Class A Common Shares
ORIG
|
+$1.16B |
| 2 |
AABA
Altaba Inc
AABA
|
+$126M |
| 3 |
Vale
VALE
|
+$77.5M |
| 4 |
CCI.PRA
Crown Castle International Corp. 6.875% Mandatory Convertible Preferred Stock, Series A
CCI.PRA
|
+$32.5M |
| 5 |
National CineMedia
NCMI
|
+$23.4M |
Top Sells
| Rank | Stock | Value |
|---|---|---|
| 1 |
VALE.P
Vale S A
VALE.P
|
+$72.9M |
| 2 |
First Bancorp
FBP
|
+$56.8M |
| 3 |
AGN.PRA
Allergan plc
AGN.PRA
|
+$37.4M |
| 4 |
America Movil
AMX
|
+$25.7M |
| 5 |
Cemex
CX
|
+$17.7M |
Sector Composition
| Rank | Sector | Weight |
|---|---|---|
| 1 | Utilities | 15.26% |
| 2 | Communication Services | 9.82% |
| 3 | Financials | 9.21% |
| 4 | Technology | 6.18% |
| 5 | Industrials | 6.17% |
| Name | Market Value | Portfolio Weight | Shares or Principal |
Change in Stake | Capital Flow | |
|---|---|---|---|---|---|---|
1
Vistra
VST
$45.7B
| $940M | 14.03% |
50,280,227
-39,926
| -0.1% | -$688K |
|
|
TRCO
2
DELISTED
TRIBUNE MEDIA COMPANY CLASS A
TRCO
| $580M | 8.65% |
14,184,998
| – | – |
|
3
Star Bulk Carriers
SBLK
$3.41B
| $316M | 4.72% |
32,579,506
+140,000
| +0.4% | +$1.46M |
|
4
Ally Financial
ALLY
$13.1B
| $240M | 3.58% |
9,893,300
-488,162
| -5% | -$10.9M |
|
|
AABA
5
DELISTED
Altaba Inc
AABA
| $206M | 3.08% |
3,111,588
+2,050,000
| +193% | +$126M |
|
6
TSMC
TSM
$2.17T
| $152M | 2.27% |
4,047,500
+212,375
| +6% | +$7.76M |
|
7
Itaú Unibanco
ITUB
$82.4B
| $127M | 1.89% |
19,048,486
+863,170
| +5% | +$5.27M |
|
8
Alibaba
BABA
$286B
| $118M | 1.76% |
682,345
+35,066
| +5% | +$5.68M |
|
|
9
Vale
VALE
$62.1B
| $91M | 1.36% |
9,037,993
+7,700,993
| +576% | +$77.5M |
|
|
DYN
10
DELISTED
Dynegy, Inc.
DYN
| $82.5M | 1.23% |
8,424,322
| – | – |
|
11
NMI Holdings
NMIH
$3.4B
| $72.1M | 1.08% |
5,816,443
| – | – |
|
12
ICICI Bank
IBN
$107B
| $65.6M | 0.98% |
7,667,330
+391,464
| +5% | +$3.58M |
|
|
GNRT
13
DELISTED
Gener8 Maritime, Inc.
GNRT
| $58.9M | 0.88% |
13,062,118
+9,584
| +0.1% | +$47.5K |
|
14
Petrobras Class A
PBR.A
$111B
| $56.1M | 0.84% |
5,805,863
+304,766
| +6% | +$2.66M |
|
|
15
First Bancorp
FBP
$4.35B
| $51.4M | 0.77% |
10,034,725
-9,966,341
| -50% | -$56.8M |
|
|
16
Cemex
CX
$16B
| $49.5M | 0.74% |
5,454,646
-1,866,165
| -25% | -$17.7M |
|
|
BDXA
17
DELISTED
Becton, Dickinson and Company Depositary Shares, each Representing a 1/20th Interest in a Share of 6
BDXA
| $47.9M | 0.71% |
866,470
+43,770
| +5% | +$2.42M |
|
|
BRFS
18
DELISTED
BRF SA
BRFS
| $44.1M | 0.66% |
3,062,998
+574,437
| +23% | +$7.48M |
|
|
EGC
19
DELISTED
Energy XXI Gulf Coast, Inc. Common Stock
EGC
| $40.4M | 0.6% |
3,910,545
| – | – |
|
20
Wells Fargo 7.5% Non Cumv Perp Conv
WFC.PRL
$4.57B
| $40.3M | 0.6% |
30,659
+1,250
| +4% | +$1.66M |
|
21
PUT
State Street SPDR S&P Homebuilders ETF
XHB
$1.46B
| $39.8M | 0.59% |
1,000,000
| – | – |
|
|
STKL
22
DELISTED
SunOpta
STKL
| $38.2M | 0.57% |
4,392,699
| – | – |
|
23
Century Communities
CCS
$1.98B
| $36.3M | 0.54% |
1,469,003
| – | – |
|
24
Ambev
ABEV
$44.4B
| $36M | 0.54% |
5,466,785
+271,009
| +5% | +$1.68M |
|
|
NSM
25
DELISTED
Nationstar Mortgage Holdings
NSM
| $33.6M | 0.5% |
1,809,291
| – | – |
|
Similar funds
Howard Marks's Q3 2017 Portfolio in Review
As of Q3 2017, Howard Marks held 209 positions worth $6.7B, up 9.5% from $6.12B the previous quarter. Its ten largest holdings account for 43% of the portfolio.
Howard Marks withdrew a net $637M in Q3 2017, closing 6 positions and reducing 11 holdings. Its most notable exit was Vale S A, an estimated $72.9M position sold in full.
By sector, the portfolio is most concentrated in Utilities at 15% of assets, up from 15% a quarter earlier, followed by Communication Services and Financials.
Against the trend, Howard Marks opened a new position in Ocean Rig UDW Inc. Class A Common Shares worth $18.9M.
- Howard Marks's largest Q3 2017 buy was Ocean Rig UDW Inc. Class A Common Shares: 794,183 shares worth $18.9M.
- Howard Marks added most to Altaba Inc in Q3 2017, an estimated $126M increase.
- Howard Marks's biggest Q3 2017 reduction was First Bancorp, cutting an estimated $56.8M.
- Howard Marks fully exited Vale S A in Q3 2017, selling an estimated $72.9M.
- Howard Marks's ten largest holdings make up 43% of its $6.7B portfolio in Q3 2017.
- Howard Marks opened 10 new positions and closed 6 in Q3 2017.
- Howard Marks's portfolio value rose 9.5% quarter-over-quarter to $6.7B.
Based on Oaktree Capital Management's 13F filing for Q3 2017, filed 14 Nov 2017.