Howard Marks - Oaktree Capital Management Portfolio Q2'2025: Top Holdings & Recent Changes
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Howard Marks, founder of Oaktree Capital Management, continues to demonstrate his expertise in navigating distressed markets. His Q2 2025 portfolio reflects strategic adjustments, with a market value of $5,814.7 million and a portfolio size of 178 positions, marking an increase of eight holdings from the previous quarter.
Portfolio Overview: Strategic Adjustments
Portfolio Highlights (Q2 2025): - Market Value: $5,814.7 million - Top 10 Holdings: 55.8% of the portfolio - Portfolio Size: 178 positions - Average Holding Period: 6 quarters - Turnover: 40.5%
Oaktree Capital's portfolio strategy emphasizes a balanced approach, combining long-term value investing with tactical adjustments. The recent increase in portfolio size and turnover rate indicates a proactive stance in response to market conditions. The top holdings are diversified across various sectors, reflecting Marks' focus on identifying undervalued opportunities.
Holdings Overview: Key Positions
The portfolio is anchored by several key positions, including TORM plc at 11.7%, which remains unchanged. STATE STREET CORP was added with a significant increase of 47.83%, now holding a 10.8% portfolio weight. Expand Energy Corporation saw a reduction of 8.99%, while Garrett Motion Inc. was reduced by 16.31%. Sitio Royalties Corp. experienced a minor addition of 0.08%. AngloGold Ashanti Limited was reduced by 9.46%, and Indivior PLC was newly added to the portfolio. Other notable positions include SunOpta Inc. and RUNWAY GROWTH FINANCE CORP, which saw a reduction of 9.28%. Additionally, CEMEX, S.A.B. de C.V. and Vista Energy, S.A.B. de C.V. were reduced by 23.45% and 5.63%, respectively.
What the Portfolio Reveals
Oaktree Capital's recent moves highlight a strategic focus on quality over growth, with a keen eye on sector-specific opportunities. The significant addition to STATE STREET CORP indicates confidence in financial services, while reductions in energy-related stocks like Expand Energy Corporation and CEMEX reflect a cautious stance on commodities. The portfolio also demonstrates a risk management approach by diversifying across sectors and maintaining a balanced holding period.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| TORM plc | $681.6M | 11.7% | No change |
| STATE STREET CORP | $630.2M | 10.8% | Add 47.83% |
| Expand Energy Corporation | $592.0M | 10.2% | Reduce 8.99% |
| Garrett Motion Inc. | $387.8M | 6.7% | Reduce 16.31% |
| Sitio Royalties Corp. | $237.9M | 4.1% | Add 0.08% |
| AngloGold Ashanti Limited | $225.5M | 3.9% | Reduce 9.46% |
| Indivior PLC | $162.3M | 2.8% | Buy |
| SunOpta Inc. | $120.2M | 2.1% | No change |
| RUNWAY GROWTH FINANCE CORP | $104.9M | 1.8% | Reduce 9.28% |
The concentration of Oaktree Capital's portfolio in its top 10 holdings reflects a strategic focus on core positions. The recent adjustments, such as the significant addition to STATE STREET CORP, demonstrate an active management approach to optimize returns.
Investment Lessons from Howard Marks
Howard Marks' investment strategy offers several key lessons for investors: - Concentration when you understand the businesses: Marks' portfolio shows a focus on core holdings, emphasizing the importance of deep understanding and conviction in investment decisions. - Holding periods matter: The average holding period of six quarters highlights the value of patience in value investing. - Quality businesses justify premium prices: The addition to STATE STREET CORP underscores the importance of investing in quality companies, even at higher valuations. - Position sizing requires constant attention: The adjustments in portfolio positions demonstrate the need for ongoing evaluation and rebalancing.
Looking Ahead: What Comes Next?
As Oaktree Capital continues to navigate the complex market landscape, potential areas for new investments may include sectors that offer distressed opportunities or undervalued assets. The current portfolio positioning sets up well for future growth, with a balanced mix of sectors and a focus on quality businesses.
FAQ about Howard Marks' Oaktree Capital Portfolio
Q: What are the key sectors in Howard Marks' portfolio?
A: The portfolio is diversified across various sectors, including financial services, energy, and commodities, reflecting Marks' focus on identifying undervalued opportunities.
Q: How does Oaktree Capital approach portfolio concentration?
A: Oaktree Capital maintains a balanced approach to portfolio concentration, focusing on core holdings while making strategic adjustments to optimize returns.
Q: How can I track Howard Marks' portfolio changes?
A: You can track Howard Marks' portfolio changes by following his 13F filings and using platforms like ValueSense for real-time insights.
Q: What is the significance of the 45-day reporting lag in 13F filings?
A: The 45-day reporting lag in 13F filings means that investors see portfolio changes after they have occurred. This lag highlights the importance of using tools like ValueSense to stay informed and make timely investment decisions.
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