Howard Marks (Trades, Portfolio) is the chairman of Oaktree Capital Management LP. Since the formation of Oaktree in 1995, Marks has been responsible for ensuring the firm's adherence to its core investment philosophy, communicating closely with clients concerning products and strategies, and managing the firm.
Web Page:http://www.oaktreecapital.com/
Oaktree Capital is involved in less efficient markets and alternative investments. The firm invests heavily in debt, preferred stocks, and convertible bonds.
Marks' portfolio is composed by 85 stocks with a total value of $9,356 million. The portfolio is mainly focused on ETF, options and preferred (55.1%) while the main stock sector is Consumer Cyclical (14.6%) and then Financial Services (8.3%).
In his recent memo, Mr. Marks said “If you think markets are logical and investors are objective and unemotional, you’re in for a lot of surprise” (read full memo here)
Based on Howard Marks' Portfolio on GuruFocus, Itau Unibanco Holding SA (ITUB), Rock-Tenn Company (RKT) and Transportadora de Gas del Sur SA (TGS) are trading at a very high discount rate.
Itau Unibanco Holding SA (ITUB)
Marks started to buy ITUB in 2010 Q3. He is currently holding 3,986,869 shares at an average price of $14.91/share, with an average negative return of 16%.
Based on the DCF model, ITUB fair value is $22.81, and these days the stock is trading with a margin of safety of 45%, at a P/E (ttm) ratio of 8.90 and P/B ratio of 1.91.
The Peter Lynch Earnings line’s Fair Value is set to $23 with a margin of safety of 45%
The Fair Value votes of GuruFocus give a fair price of $21.25 with a margin of safety of 43%
Over the last five years the company revenue grew by 6.30%, EBITDA grew by 13%, and EPS growth rate is 12%. ITUB has top ratios for the Global Banks – Regional – Latin America industry (ROE at 23.41%, ROA at 1.95% and ROC at 261%) and good Financial strength, rated 6/10.
Howard Marks (Trades, Portfolio) is the Guru with largest amount of outstnding shares of ITUB, holding 0.07% , followed by Ken Heebner (0.03%) and Jeremy Grantham (0.02%)
Rock-Tenn Company (RKT)
Marks started to buy ITUB in Q3 of the year 2014. He is currently holding 502,832 shares at an average price of $49.67/share, with an average positive return of 27%
Based on the DCF model, RKT fair value is $97.36, and these days the stock is trading with a margin of safety of 29%, at a P/E (ttm) ratio of 21.00 and P/B ratio of 2.20. The current price is hitting all-time highs.
The Peter Lynch Earnings line’s Fair Value is set to $59.5 with a negative margin of safety of -13%
The Fair Value votes of GuruFocus give a fair price of $119.07 (after 9 votes) with a margin of safety of 42%
Over the last five years the company revenue grew by 14.90%, EBITDA grew by 8.30% and EPS growth rate is 7.40%. RKT has top ratios of the Global Packaging & Containers industry (11.27% of ROE, 4.58% of ROA and 12.71% of ROC) and good Financial strength, rated 8/10.
The Guru holding most shares of holding RKT is Richard Perry (holding 2.01% Outstanding Shares) followed by Larry Robbins (0.78%). Howard Marks holds 0.36% of Outstanding Shares.
Transportadora de Gas del Sur SA (TGS)
Marks started to buy TGS in Q2 of the year 2014. He is currently holding 547,476 shares at an average price of $2.7/share, with an average positive return of 42%
Based on the DCF model, RKT fair value is $1.79, and these days the stock is trading with a margin of safety of 23%, at a P/E (ttm) ratio of 34.60 and P/B ratio of 3.50.
The Peter Lynch Earnings line Fair Value is set to $1.8 with a negative margin of safety of -113%
The Fair Value votes of GuruFocus give a fair price of $8 (after 2 votes)
Over the last five years the company revenue grew by 15.50%, EBITDA grew by 15.00% and Free Cash Flow growth rate is 8.40%. EPS dropped by -2.50%. RKT has top ratios of the Global Utilities – Regulalted Gas industry (13.72% of ROE, 4.67% of ROA and 32.13% of ROC) and good Financial strength, rated 6/10.
The Guru holding most shares of TGS is Jim Simons (0.71% of Outstanding Shares), followed by Jeremy Grantham (0.44%). Howard Marks holds 0.34% Outstanding Shares of TGS.
