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Howard Marks Top Five

February 11, 2014 | About:
Monica Wolfe

Monica Wolfe

133 followers

Howard Marks (Trades, Portfolio) is the Chairman of Oaktree Capital, and has been responsible for ensuring the firm’s adherence to its investment philosophy and communicating with clients and managing the firm since 1995. Oaktree Capital specializes in less efficient markets and alternative investments while staying away from high risk.

Over the past quarter Marks purchased 12 new stocks bringing his total portfolio holdings to 79 stocks valued at $5.442 billion. The following five companies are Howard Marks (Trades, Portfolio)’ largest holdings as of the close of the fourth quarter.

Masonite International Corp (DOOR)

As of the close of the fourth quarter Masonite International was Howard Marks (Trades, Portfolio)’ largest holding. The guru holds on to 4,477,837 shares of the company’s stock, representing 4.9% of the guru’s shares outstanding.

Over the duration of the past quarter Marks reduced his position -6.29% by selling 300,497 shares of the company’s stock. He sold these shares near the estimated average quarterly price of $50.46 per share. Since then the price per share has jumped up an additional 6.3%.

Marks’ historical holding history:

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Masonite International Corporation manufactures and markets interior and exterior door products worldwide. The company offers a line of interior doors, and it also provides various components of doors.

Masonite’s historical pricing:

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The analysis on Masonite International notes that the company’s price is near a 1-year high and that its P/E ratio is also near a 1-year high.

Masonite International has a market cap of $1.56 billion. Its shares are trading at around $54.11 with a P/E ratio of 451.00 and a P/B ratio of 1.90.

There are four gurus with a position in DOOR. Check out their holdings here.

First BanCorp (FBP)

The guru’s second largest holding was in First BanCorp where he maintains 41,843,581 shares of the company’s stock. This position makes up for 4.8% of his total portfolio as well as 20.22% of the bank’s shares outstanding.

Howard Marks (Trades, Portfolio) did not alter his position in the company over the duration of the past quarter.

Marks’ historical holding history:

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First BanCorp is a provider of financial services and products with operations in Puerto Rico, the United States and the US and British Virgin Islands. It provides a range of financial services for retail, commercial and institutional clients.

First BanCorp’s historical revenue and net income:

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The analysis on First BanCorp reports that the company’s revenue has been in decline over the past five years, its P/S and P/B ratios are trading at 1-year lows and its Altman Z-Score is in distress, which could mean a possibility of bankruptcy within the next few years.

First BanCorp has a market cap of $1.04 billion. Its shares are currently trading at around $4.99 with a P/S ratio of 2.00 and a P/B ratio of 0.80.

EXCO Resources (XCO)

Howard Marks (Trades, Portfolio)’ third largest holding as of the fourth quarter was in EXCO Resources. He held on to 36,778,946 shares of the company’s stock. This represents 3.6% of his total portfolio as well as 16.91% of the company’s shares outstanding.

The guru did not alter his position in EXCO during the fourth quarter, but more recently he upped his stake on Jan. 9, by 23.04%. The guru added 8,472,236 shares at an average price of $4.99 per share. Since then the price per share is up about 1%.

As of this most recent buy Marks holds on to 45,251,182 shares of the company’s stock, representing 20.8% of the company’s shares outstanding.

Marks’ holding history as of the close of Q4:

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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 Resources’ historical revenue and net income:

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The analysis on EXCO Resources reports that the company’s revenue has been in decline over the past five years, its operating income has been in loss over the past three years and it has issued $1.5 billion of debt over the past three years. The analysis also notes that the company’s dividend yield is near a 5-year high, its price is near a 10-year low and its P/S ratio is near a 3-year low.

EXCO Resources has a market cap of $1.37 billion. Its shares are currently trading at around $5.03 with a P/S ratio of 1.80 and a P/B ratio of 4.00.

Dynegy (DYN)

Over the past quarter Dynegy was Marks’ fourth largest holding. The guru owns 8,245,986 shares of the company’s stock, representing 3.3% of his total portfolio as well as 8.24% of the company’s shares outstanding.

Howard Marks (Trades, Portfolio) did not alter his position in Dynegy over the past quarter. Since his buy in the fourth quarter of 2012, the price per share has increased approximately 10%.

Marks’ historical holding history:

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Dynegy is a holding company and conducts all of its business operations through its subsidiaries. The company's business operations are the power generation sector of the energy industry. It now manages its generation assets by fuel type with two main reportable segments: the Coal segment and the Gas segment.

Dynegy’s historical revenue and net income:

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The analysis on Dynegy reports that the company’s P/B and P/S ratios are trading at 1-year lows.

Dynegy has a market cap of $2.06 billion. Its shares are trading at around $20.60 with a P/S ratio of 1.50 and a P/B ratio of 0.90.

Delphi Automotive (DLPH)

Howard Marks (Trades, Portfolio)’ fifth largest position goes to Delphi Automotive where he maintains 2,125,000 shares of the company’s stock. This position makes up for 2.3% of his total holdings as well as 0.69% of the company’s shares outstanding.

Over the past quarter Marks reduced his position -29.17% by selling a total of 875,000 shares of the company’s stock. He sold these shares around the average quarterly price of $57.85 per share. Since then the price per share is up about 8.9%.

Marks’ historical holding history:

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Delphi Automotive is a global vehicle components manufacturer and provides electrical and electronic, powertrain, safety and thermal technology solutions to the global automotive and commercial vehicle markets. Its customers include the 25 largest automotive OEMs in the world.

Delphi’s historical revenue and net income:

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The analysis on Delphi Automotive reports that the company’s dividend yield is at a 1-year high and its price is sitting near a 3-year high.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Delphi Automotive has a market cap of $19.4 billion. Its shares are currently trading at around $63.03 with a P/E ratio of 19.00, a P/S ratio of 1.20 and a P/B ratio of 7.00.

Check out Howard Marks’ complete fourth quarter portfolio here.

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