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 |
PG&E
PCG
|
+$245M |
| 2 |
Itaú Unibanco
ITUB
|
+$26.5M |
| 3 |
TMHC
Taylor Morrison
TMHC
|
+$25.3M |
| 4 |
TORM
TRMD
|
+$23.1M |
| 5 |
Cemex
CX
|
+$20.5M |
Top Sells
| Rank | Stock | Value |
|---|---|---|
| 1 |
Petrobras Class A
PBR.A
|
+$33M |
| 2 |
CEO
CNOOC Limited
CEO
|
+$30.3M |
| 3 |
Alibaba
BABA
|
+$22.5M |
| 4 |
SRLP
SPRAGUE RESOURCES LP
SRLP
|
+$17.7M |
| 5 |
Caesars Entertainment
CZR
|
+$15.2M |
Sector Composition
| Rank | Sector | Weight |
|---|---|---|
| 1 | Utilities | 16.95% |
| 2 | Financials | 12.74% |
| 3 | Technology | 11.47% |
| 4 | Energy | 11.41% |
| 5 | Consumer Discretionary | 9.34% |
| Name | Market Value | Portfolio Weight | Shares or Principal |
Change in Stake | Capital Flow | |
|---|---|---|---|---|---|---|
1
Vistra
VST
$45.7B
| $564M | 12.52% |
30,278,055
| – | – |
|
|
2
TORM
TRMD
$3.26B
| $356M | 7.9% |
51,804,925
+2,904,419
| +6% | +$23.1M |
|
3
Ally Financial
ALLY
$13.1B
| $284M | 6.3% |
14,318,541
| – | – |
|
4
Star Bulk Carriers
SBLK
$3.41B
| $257M | 5.72% |
39,006,017
| – | – |
|
5
TSMC
TSM
$2.17T
| $216M | 4.79% |
3,803,479
+345,552
| +10% | +$18.2M |
|
|
6
PG&E
PCG
$38.8B
| $200M | 4.43% |
+22,500,000
| New | +$245M |
|
|
CZR
7
DELISTED
Caesars Entertainment Corporation
CZR
| $185M | 4.11% |
15,250,000
| – | – |
|
|
INFN
8
DELISTED
Infinera Corporation Common Stock
INFN
| $149M | 3.31% |
25,175,384
| – | – |
|
|
TMHC
9
DELISTED
Taylor Morrison
TMHC
| $124M | 2.76% |
6,433,140
+1,608,140
| +33% | +$25.3M |
|
10
AngloGold Ashanti
AU
$61.3B
| $94.7M | 2.1% |
3,212,281
+687,100
| +27% | +$17M |
|
11
Super Micro Computer
SMCI
$24.1B
| $93.3M | 2.07% |
32,846,360
-1,848,690
| -5% | -$4.65M |
|
|
12
Itaú Unibanco
ITUB
$82.4B
| $89.2M | 1.98% |
26,127,531
+8,179,743
| +46% | +$26.5M |
|
13
NMI Holdings
NMIH
$3.4B
| $70.8M | 1.57% |
4,400,000
| – | – |
|
|
14
Cemex
CX
$16B
| $68.9M | 1.53% |
23,938,116
+8,743,207
| +58% | +$20.5M |
|
|
EGLE
15
DELISTED
Eagle Bulk Shipping Inc.
EGLE
| $64.7M | 1.44% |
4,220,591
| – | – |
|
|
BRY
16
DELISTED
Berry Corp
BRY
| $62.4M | 1.38% |
12,913,313
| – | – |
|
|
17
Alibaba
BABA
$286B
| $60.9M | 1.35% |
282,547
-108,134
| -28% | -$22.5M |
|
18
Baidu
BIDU
$31.6B
| $50.8M | 1.13% |
423,307
+90,892
| +27% | +$9.72M |
|
19
ICICI Bank
IBN
$107B
| $48.8M | 1.08% |
5,251,011
+481,567
| +10% | +$4.28M |
|
20
Liberty Global Class C
LBTYK
$3.55B
| $43M | 0.96% |
2,000,000
| – | – |
|
21
Century Communities
CCS
$1.98B
| $41.9M | 0.93% |
1,365,000
-454,003
| -25% | -$10.8M |
|
22
Afya
AFYA
$1.27B
| $41.2M | 0.92% |
1,758,666
+318,904
| +22% | +$6.55M |
|
|
STKL
23
DELISTED
SunOpta
STKL
| $38M | 0.84% |
8,092,699
| – | – |
|
|
24
Petrobras
PBR
$123B
| $34M | 0.75% |
4,110,666
+382,573
| +10% | +$2.77M |
|
25
Mercado Libre
MELI
$97.5B
| $32.2M | 0.72% |
32,700
+7,300
| +29% | +$5.47M |
|
Similar funds
Howard Marks's Q2 2020 Portfolio in Review
As of Q2 2020, Howard Marks held 206 positions worth $4.5B, up 27% from $3.56B the previous quarter. Its ten largest holdings account for 54% of the portfolio.
Howard Marks withdrew a net $350M in Q2 2020, closing 17 positions and reducing 7 holdings. Its most notable exit was Petrobras Class A, an estimated $33M position sold in full.
By sector, the portfolio is most concentrated in Utilities at 17% of assets, up from 14% a quarter earlier, followed by Financials and Technology.
Against the trend, Howard Marks opened a new position in PG&E worth $200M.
- Howard Marks's largest Q2 2020 buy was PG&E: 22,500,000 shares worth $200M.
- Howard Marks added most to Itaú Unibanco in Q2 2020, an estimated $26.5M increase.
- Howard Marks's biggest Q2 2020 reduction was Alibaba, cutting an estimated $22.5M.
- Howard Marks fully exited Petrobras Class A in Q2 2020, selling an estimated $33M.
- Howard Marks's ten largest holdings make up 54% of its $4.5B portfolio in Q2 2020.
- Howard Marks opened 9 new positions and closed 17 in Q2 2020.
- Howard Marks's portfolio value rose 27% quarter-over-quarter to $4.5B.
Based on Oaktree Capital Management's 13F filing for Q2 2020, filed 14 Aug 2020.