Howard Marks

Howard Marks

Last Update: 05-12-2015

Number of Stocks: 68
Number of New Stocks: 9

Total Value: $6,206 Mil
Q/Q Turnover: 7%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Howard Marks Watch

  • Are You Playing Defense in This Market?

    Ouch. That’s how I felt in 2008 when my portfolio was down 28.6%.

    The S&P was down 37% that year but I certainly didn’t care about having beaten the market.


  • Howard Marks Investing More In Europe

    Howard Marks (Trades, Portfolio) of Oak Tree Capital Group (NYSE:OAK) did a interview with Bloomberg Market Makers where he discusses his investment strategy and his outlook on the financial markets. He went on to discuss investment opportunities in Europe where he is finding bargain stocks.

    Interview With Bloomberg


  • Origins and Inspirations - Howard Marks' Talk at Google

    Howard Marks (Trades, Portfolio) gave this great talk at Google about the origins and inspirations of his investment philosophy. The full video can be found here:


  • Praxair Appears to be Trading Undervalued

    Manning & Napier Advisors, Inc has recently initiated a new position on Praxair Inc. (NYSE:PX) with 30,886 shares.

    The company provides 22 consecutive years of dividend increases and this fact makes me feel bullish on this stock.


  • Risk and Uncertainty Redux: Part II

    90% of risk in our investment lives can be mitigated by doing nothing. The ability to sit and let long-term value creation work without expenses is the eighth wonder of the world. If you choose your investment wisely – by not overpaying, finding reasonable profitability, and seeking a competitive advantage – time can (in general!) only be your friend and not your enemy in investment returns”.

    – John Thurman


  • Why High Growth Stocks Like Netflix are Risky and Priced for Perfection

    “High risk investments have higher rewards.”

    You’ve heard this your whole life, but what if I told you it’s completely wrong.


  • Howard Marks: The Uncomfortably Idiosyncratic Billionaire

    As an undergraduate at Wharton in the 1960s, Howard Marks (Trades, Portfolio) stumbled upon one of the guiding principles of his life — the Buddhist concept of mujo. In his Japanese studies course, mujo was defined as “the turning of the wheel of the law.” Marks explains: “Change is inevitable. The only constant is impermanence. … We have to accommodate to the fact that the wheel turns and the environment changes.” This constant flux applies not only to human lives but economies and markets. “It’s very helpful to view the world as behaving cyclically and oscillating rather than going in a straight line. Everything is cyclical.”

    “You can’t control the environment,” Marks adds. So the key is to recognize how it’s changing, accept it and respond as wisely as possible. “The screwiest thing you can do is to think you’re a Master of the Universe. We’re all just little cogs, and the universe will go on without us. We have to fit into it and adapt to it.” For example, at the time of our interview in late 2014, he sees scant investment opportunity and excessive complacency: “What bigger mistake could there be than to think you can safely get high returns in a low-return world?” Investors should adjust by assuming less risk and lowering their expectations. He cites a favorite quote from Peter Bernstein: “The market’s not a very accommodating machine; it won’t provide high returns just because you need them.


  • Why Howard Marks Of Oaktree Capital Management Is Buying More Dynegy

    Dynegy (NYSE:DYN) is utility located in the Midwest, the Northeast and the West. The company generates power (26 gigawatts of capacity) through natural gas and coal plants and is the third-largest independent power producer after NRG Energy (NYSE:NRG) and Calpine (NYSE:CPN). Dynegy's capacity includes baseload, intermediate, and peak power plants. Several years ago Dynegy entered Chapter 11 after a severe decline in power prices left it unable to service its excessive debt. After exiting from Chapter 11 the company started acquiring assets at value prices and building out its operations again. Most recently it acquired 9.0 GW in PJM and 3.4 GW in New England from Duke Energy (NYSE:DUK) and Energy Capital Partners. Since exiting Chapter 11 total Mw capacity has increased by ~2,5x.

    Robert C. Flexon, whose contract was recently extended to 2018 and who bought shares at the end of 2014, and his team did a remarkable job with their PRIDE program to cut costs and increase efficiency. The Ameren acquisition got integrated much more smoothly than I expected. I have been following the company for a couple of years now, and the company tends to beat the long-term guidance. The recent acquisition in New England is likely to yield additional benefits over the next few years and powers management's EBITDA guidance for 2016 of $1.6 billon. With its current Enterprise value of $9.64 billon the company trades at roughly 6x forward EV/Ebitda. That is an attractive valuation by itself, but with management guidance generally being conservative and the company’s $3.5 billon of NOLs this is a great opportunity. It is no surprise Howard Marks (Trades, Portfolio) Oaktree Capital Management LLC is increasing its stake and now holding over 8% of shares.


  • Risk Revisited Again – Howard Marks' Latest Memo

    This is the latest memo from Howard Marks. Howard Marks is one of the very few clear thinkers of our time. We strongly recommend you to read this.

    Risk Revisited Again


  • Ray Dalio: My Most Fundamental Life Principles

    In case you haven’t read them yet, Ray Dalio (Trades, Portfolio)’s Principles, which you can find here, are a compendium of advice on how to think differently, better and, therefore, beat the market and live a better life. As you may know, Dalio leads Bridgewater, one of the world’s most prominent hedge funds. After being successful over many years, there must be something that the firm is doing differently. Among other pecularities, Dalio has mentioned that he practices transcendental meditation and all the conversations (in every room) across Bridgewater are taped and made available for all the employees.

    These are some of his life principle


  • The value investor’s tool box

    We at Gurufocus have quite a solid idea as to what a value investor is, what he does and how he approaches investing. Nevertheless, I have compiled a list of tools that I believe should be in every Value Investor’s toolbox, and as such are the key skills needed to achieve outperformance, and continue to improve as a value-investor.

    The following is my humble attempt at identifying, analyzing and synthesizing the keys to effectively and continually beat the market.


  • Distressed-debt Investor Howard Marks Sells Five Holdings

    Howard Marks (Trades, Portfolio) is the founder and chairman of Oaktree Capital Management, which is the world’s largest distressed-debt investor.

    The firm invests in specialized niche markets, but the primary goal is superior performance with less-than-commensurate risk, according to the company website.


  • Locust Wood Capital Bet on Top Performer Valeant Pharmaceuticals

    Hedge fund Locust Wood Capital Advisers LLC disclosed an equity portfolio valued at some $792 million as of the end of the first quarter of 2015. The equity portfolio is mainly invested in Finance (29%), Consumer Discretionary (27%) and Health Care (17%) stocks. Two of the three main sectors are the same in which it invests Menta Capital LLC.

    Locust Wood’s last 13F filing showed that the fund raised its exposure towards health care and industrials stocks, but reduced its holdings in the financial sector. The fund replaced with other holdings in a given year, the turnover ratio was at 55.56%. The fund had 11 new purchases and additional purchases of 19 stocks. On the other hand, it sold out 14 stocks while reducing holdings in 13 stocks.


  • Howard Marks' Top 5 New Buys of First Quarter

    Howard Marks (Trades, Portfolio) is the founder of Oaktree Capital Management, a management form with $99 billion in assets under management. The firm focuses on less efficient markets and alternative investments to achieve superior returns while minimizing risk.

    At the end of the first quarter, Marks’ portfolio contained 68 stocks with a total value of $6.2 billion. Nine of the stocks were new, and the top sectors represented were Real Estate at 31.2%, Consumer Cyclical at 22.9% and Financial Services at 12.6%.


  • Joel Greenblatt: Conversation With Whaton

    Joel Greenblatt (Trades, Portfolio) recently sat down and had a conversation with Whaton which was moderated by legendary distree debt investor Howard Marks (Trades, Portfolio) of Oaktree Capital. Throughout the interview Joel Greenblatt (Trades, Portfolio) discussed a variety of topics ranging from diversification to capital allocation.


  • Grantham, Marks and Gundlach Reveal Their Biggest Investing Hits And Misses

    From The Wall Street Journal:

    Jeremy Grantham (Trades, Portfolio)


  • A Conversation between Joel Greenblatt and Howard Marks

  • Top Investors Share Their Learned Lessons from Success and Failure

    The Wall Street Journal interviewed Rob Arnott, founder and chairman of Research Affiliates, Jeremy Grantham (Trades, Portfolio), chief investment strategist at GMO LLC, Howard Marks (Trades, Portfolio), Co-chairman at Oaktree Capital Management, and Jeffrey Gundlach, CEO of DoubleLine Capital LP and asked them about their greatest successes and failures, and the lessons that stemmed from those experiences. I found the article to be very enriching given what Munger mentioned about learning vicariously:

    “But if you’ve got a good temperament, which basically means being very patient, yet combine that with a vast aggression when you know enough to do something, then you just gradually learn the game, partly by doing, partly by studying. Obviously the more hard lessons you can learn vicariously, instead of from your own terrible experiences, the better off you will be.”


  • There Are No Compelling Bargains - Howard Marks

    Howard Marks (Trades, Portfolio) is having a hard time finding bargains. In fact he doesn't really see any bargains today.

    In his view virtually every asset class is valued on the high side of fair.  

  • Securities in an Insecure World - Notes on a 1963 Lecture by Ben Graham

    Recently, the Wall Street Journal published some notes from a lecture by Benjamin Graham that occured in 1963. In there, as usual, the brilliant insight of Mr. Graham shines across the lecture. Since it is a large document, I decided to share and comment some of the most important points from my point of view.

    “The argument that common stocks are and always will be attractive, including the present time, because of their excellent record since 1949- involves in those terms a very fundamental and important fallacy. This is the idea that the better the past record of the stock market as such, the more certain it is that common stocks are sound investments for the future… As I see it, the real truth is exactly the opposite, for the higher the stock market advances the more reason there is to mistrust its future action if you are going to consider only the market’s internal behavior. “


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