Insights from Oaktree Capital's Latest 13F Filing for Q3 2023
Renowned investor Howard Marks (Trades, Portfolio), Chairman of Oaktree Capital Management LP, has made significant changes to his investment portfolio in the third quarter of 2023. Oaktree Capital, known for its focus on alternative investments and less efficient markets, has a strategy deeply rooted in debt, preferred stocks, and convertible bonds. Marks, who has been at the helm since Oaktree's inception in 1995, is recognized for his commitment to the firm's core investment philosophy and his active role in client relations and firm management.
New Additions to the Portfolio
During the quarter, Howard Marks (Trades, Portfolio) expanded his portfolio with six new stocks. Noteworthy additions include:
- Anglogold Ashanti PLC (AU, Financial), with 5,428,819 shares, making up 1.43% of the portfolio and valued at $85.78 million.
- Diebold Nixdorf Inc (DBD, Financial), comprising 590,774 shares, which is approximately 0.19% of the portfolio, with a total value of $11.19 million.
- Bausch Health Companies Inc (BHC, Financial), with 1,300,000 shares, accounting for 0.18% of the portfolio and a total value of $10.69 million.
Significant Position Increases
Howard Marks (Trades, Portfolio) also bolstered his stakes in ten existing holdings. Key increases include:
- JD.com Inc (JD, Financial), with an additional 695,180 shares, bringing the total to 1,706,910 shares. This represents a 68.71% increase in share count, a 0.34% impact on the current portfolio, and a total value of $49.72 million.
- Vale SA (VALE, Financial), with an additional 911,385 shares, bringing the total to 8,694,367. This adjustment signifies an 11.71% increase in share count, with a total value of $116.50 million.
Complete Exits from Certain Holdings
In a strategic move, Howard Marks (Trades, Portfolio) exited 43 positions in the third quarter of 2023, including:
- Ally Financial Inc (ALLY, Financial), where all 4,600,000 shares were sold, impacting the portfolio by -1.89%.
- Anglogold Ashanti Plc (AU, Financial), with the liquidation of all 4,728,622 shares, causing a -1.52% impact on the portfolio.
Notable Reductions in Key Stocks
Furthermore, Marks reduced his positions in 20 stocks. The most significant reductions were:
- Vistra Corp (VST, Financial), with a reduction of 8,000,000 shares, resulting in a -47.06% decrease in shares and a -3.2% impact on the portfolio. The stock traded at an average price of $30.03 during the quarter and has seen a return of 14.66% over the past three months and 51.37% year-to-date.
- Star Bulk Carriers Corp (SBLK, Financial), with a reduction of 10,000,000 shares, leading to a -38.36% decrease in shares and a -2.69% impact on the portfolio. The stock's average trading price was $17.81 during the quarter, with a return of 1.82% over the past three months and 2.97% year-to-date.
Portfolio Overview and Sector Allocation
As of the third quarter of 2023, Howard Marks (Trades, Portfolio)'s portfolio comprised 79 stocks. The top holdings included 24.44% in TORM PLC (TRMD, Financial), 10.09% in Chesapeake Energy Corp (CHK, Financial), 5.81% in Garrett Motion Inc (GTX, Financial), 5.24% in Sitio Royalties Corp (STR, Financial), and 5.18% in Star Bulk Carriers Corp (SBLK). The investments are predominantly concentrated across 11 industries, with a focus on Energy, Financial Services, Basic Materials, and others, reflecting a diverse approach to sector allocation.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
