Top 5 Holdings of Howard Marks
During the second quarter, Howard Marks of Oaktree Capital purchased nine stocks, bringing his fund’s portfolio to 80 stocks valued at about $5 billion. The following five companies represent his top five stock holdings.
First BanCorp (FBP)
First BanCorp is Guru Howard Marks’s top holding, taking up 7.3% of his total portfolio. During the second quarter Marks did not make any changes to his holdings in the company.
Marks owns a massive 50,684,485 shares of First BanCorp, representing 24.57% of the company’s shares outstanding. Marks has maintained these exact holdings since 2011Q4. Since his initial (and only) buy, Marks has seen a gain of 121.7% on his FBP shares.
Marks’ holding history of FBP as of the second quarter:
First BanCorp is the bank holding company for FirstBank Puerto Rico. It is a full service provider of financial services and products with operations in Puerto Rico, the United States and the US and British Virgin Islands.
First BanCorp’s historical price, revenue and net income:
The second quarter financial results highlighted:
· Net loss of $122.6 million, or $0.60 per diluted sale.
· Adjusted net income of $16.8 million, or $0.08 per diluted share, compared to an adjusted net loss of $4.6 million, or $0.02 per diluted share during the first quarter.
· Completed bulk sale of non-performing residential mortgage loans for $128.3 million in a cash transaction.
· Non-performing assets decreased for the 13th consecutive quarter.
First BanCorp is currently trading at $7.52 per share with a P/E ratio of 49.20, a P/B ratio of 1.20 and a P/S ratio of 2.90. The company has a market cap of $1.55 billion.
Howard Marks, Jim Simons and Arnold Schneider all maintain a position in FBP.
EXCO Resources (XCO)
Marks’ second largest position is in the independent oil and natural gas company, EXCO Resources. Howard Marks currently holds 36,778,946 shares of EXCO Resources, representing 16.90% of the company’s shares outstanding and 5.7% of his total portfolio.
Marks made his first buy in 2010Q3 and sold out the next quarter when the share price of XCO jumped approximately $3 per share. The guru bought back into the stock in 2011Q1, and since that buy the share price has plummeted -60.2%.
Marks’ holding history of XCO as of the second quarter:
EXCO Resources is an independent oil and natural gas company engaged in the exploration, exploitation, development and production of onshore North American oil and natural gas properties with a focus on shale resource plays.
EXCO’s historical price, revenue and net income:
The company’s second quarter financials reported:
· Non-GAAP adjusted net income of $0.10 per diluted share, up from $0.05 per diluted share last year.
· Adjusted EBITDA was $90 million compared with $112 million last year.
· GAAP net income was $86 million, or $0.40 per diluted share, compared to a net loss of $496 million, or $2.32 per diluted share.
EXCO Resources has a market cap of $1.72 billion. Its shares are currently trading at around $7.90 with a P/E ratio of 32.80, a P/S ratio of 3.10 and a P/B ratio of 5.90. The company also offers a dividend yield of 2.30%.
Four gurus currently hold positions in XCO. Click here to see their holding histories.
Charter Communications (CHTR)
During the second quarter Marks made a slight decrease in his third largest holding, Charter Communications. The guru reduced his position -1.32% by selling 26,405 shares at an average price of $109.87 per share.
Howard Marks initially bought into Charter during the third quarter of 2010. The guru purchased over 19 million shares at about $35 per share. Since his initial buy, the price per share has increased a significant 258.9%.
Marks currently holds 1,973,595 shares of Charter Communications, representing 1.95% of the company’s shares outstanding and 5% of his total portfolio.
Marks’ holding history of CHTR as of June 30:
The company offers residential and commercial customers traditional cable video programming, high-speed Internet services, and telephone services, as well as advanced broadband services such as high definition television, Charter OnDemand, and digital video recorder (DVR) service.
Charter’s historical price, revenue and net income:
The company released its second quarter results which reported:
· Revenues of $1.972 billion grew 4.7% from last year.
· Adjusted EBITDA declined by 0.1% year over year to $692 million.
· Free cash flow of $75 million and net cash flows of $484 million.
Charter Communications has a market cap of $12.82 billion. Its shares are currently trading at around $126.59 with a P/S ratio of 1.70 and a P/B ratio of 98.80. The company has seen an annual average earnings growth of 79.6% over the past five years.
There are eleven gurus that hold positions in CHTR. Click here to see their holding histories.
Marks upped his position in his fourth largest holding, Dynegy, by over 7% during the second quarter. Marks purchased a total of 576,579 shares, representing a 7.98% increase in his position in the company. Marks purchased these shares at an average price of $23.60 per share, which has now seen a -16.7% decrease in value.
Marks made his initial buy in Dynegy in 2012Q4 when he purchased over 7.2 million shares. Since this preliminary buy, the share price has increased 6.2%. Marks now holds 7,800,986 shares of Dynegy, representing 7.8% of the company’s shares outstanding and 3.6% of his total portfolio.
Marks’ holding history of Dynegy as of June 30:
Dynegy’s subsidiaries produce and sell electric energy, capacity and ancillary services in key U.S. markets. The company's current business operations are focused mainly on the power generation sector of the energy industry. It now manages its generation assets by fuel type with three main reportable segments: The Coal segment, The Gas Segment and The Dynegy Northeast Segment.
Dynegy’s historical price, revenue and net income:
The company’s second quarter results highlighted:
· Adjusted EBITDA of $8 million for the quarter compared to $11 million last year.
· Adjusted EBITDA of $51 million compared to $49 million last year.
· Completed a $1.3 billion refinancing and placed a $475 million credit facility.
Dynegy has a market cap of $1.97 billion. Its shares are currently trading at around $19.62 with a P/S ratio of 1.80 and a P/B ratio of 0.90.
There are four gurus that maintain a position in DYN. Click here to see their holding histories.
Delphi Automotive (DLPH)
Marks made the largest change in his top holdings to his fifth largest position, Delphi Automotive. During the second quarter, Marks reduced his position 25% by selling 1,000,000 shares of the company’s stock at an average price of $46.86 per share. Since this sell, the price per share has increased about 17.3%.
Marks made his first buy into Delphi in 2011Q4, and since then the share price has jumped up approximately 160.5%. Marks now owns 3,000,000 shares of Delphi, representing a small 0.95% of the company’s shares outstanding and 3.1% of his total portfolio.
Marks’ holding history of DLPH as of the second quarter:
Delphi Automotive is a global supplier of electronics and technologies for automotive, commercial vehicle and other market segments.
Delphi Automotive’s historical price, revenue and net income:
The company’s second quarter financials reported:
· GAAP diluted earnings of $1.17
· EBITDA of $645 million.
· Revenue of $4.2 billion, up 6%.
· Operating cash flow of $672 million.
· Executed $120 million of share repurchases, year-to-day $242 million.
Delphi is currently trading at a two-year high.
Delphi Automotive has a market cap of $17.31 billion. Its shares are currently being traded at around $55.79 with a P/E ratio of 16.80, a P/S ratio of 1.10 and a P/B ratio of 7.20.
There are 20 gurus that hold a position in DLPH. Click here to see their holding histories.
You can check out Howard Marks’ second quarter portfolio here.
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