As of Q2 2024, Howard Marks’ Oaktree Capital Management portfolio reflects strategic movements with both additions and reductions across various sectors, particularly in energy, transportation, and mining. Below is a detailed overview of 

the top holdings:

TRMD – Torm Plc

• Portfolio Allocation: 32.88%
• Recent Activity: Reduced holdings by 13.52%.
• Shares Held: 44,109,986.
• Reported Price: $39.09 per share.
• Value at Reported Price: $1,724,284,000.
• Current Price: $37.67 per share.
• Price Change: -3.63%.
• 52-Week Range: $21.31 – $40.47.

Torm Plc remains the largest holding in the portfolio, despite a reduction in shares. The decrease in the current price suggests a slight pullback in the shipping sector, though it remains near its 52-week high, indicating overall strength.

CHK – Chesapeake Energy

• Portfolio Allocation: 10.77%
• Recent Activity: Reduced holdings by 1.62%.
• Shares Held: 6,870,884.
• Reported Price: $82.19 per share.
• Value at Reported Price: $564,718,000.
• Current Price: $73.06 per share.
• Price Change: -11.11%.
• 52-Week Range: $68.87 – $92.23.

Chesapeake Energy’s position was slightly reduced, likely due to the decline in its current price. The energy sector has faced volatility, reflected in the 11.11% drop from the reported price.

GTX – Garrett Motion Inc.

• Portfolio Allocation: 7.22%
• Recent Activity: No change reported.
• Shares Held: 44,082,816.
• Reported Price: $8.59 per share.
• Value at Reported Price: $378,671,000.
• Current Price: $8.09 per share.
• Price Change: -5.82%.
• 52-Week Range: $6.43 – $10.16.

Garrett Motion remains a significant holding with no recent changes. The current price shows a slight decline, but it remains within a stable range close to its 52-week high.

STR – Sitio Royalties Corp A

• Portfolio Allocation: 5.82%
• Recent Activity: No change reported.
• Shares Held: 12,935,120.
• Reported Price: $23.61 per share.
• Value at Reported Price: $305,398,000.
• Current Price: $22.41 per share.
• Price Change: -5.08%.
• 52-Week Range: $19.18 – $25.64.

Sitio Royalties Corp A shows a slight decrease from its reported price, reflecting minor fluctuations in the energy royalty sector. The position remains stable, indicating long-term confidence.

SBLK – Star Bulk Carriers Corp.

• Portfolio Allocation: 3.7%
• Recent Activity: Added 30.43%.
• Shares Held: 7,966,426.
• Reported Price: $24.38 per share.
• Value at Reported Price: $194,221,000.
• Current Price: $21.26 per share.
• Price Change: -12.80%.
• 52-Week Range: $15.93 – $26.70.

The significant addition to Star Bulk Carriers reflects a bullish outlook on the shipping sector, despite the current price drop. The investment suggests confidence in the long-term potential of global shipping.

AU – AngloGold Ashanti Ltd.

• Portfolio Allocation: 3.03%
• Recent Activity: Added 5.48%.
• Shares Held: 6,328,888.
• Reported Price: $25.13 per share.
• Value at Reported Price: $159,045,000.
• Current Price: $30.40 per share.
• Price Change: +20.97%.
• 52-Week Range: $14.79 – $31.35.

The addition to AngloGold Ashanti, combined with its current price increase, shows strong confidence in the gold mining sector. The substantial price rise suggests positive market conditions for gold.

INFN – Infinera Corp.

• Portfolio Allocation: 2.92%
• Recent Activity: No change reported.
• Shares Held: 25,175,384.
• Reported Price: $6.09 per share.
• Value at Reported Price: $153,318,000.
• Current Price: $5.86 per share.
• Price Change: -3.78%.
• 52-Week Range: $2.82 – $6.62.

Infinera Corp remains a stable position with no changes, despite a slight decrease in price. The position indicates a steady outlook on the telecommunications equipment sector.

VALE – Vale SA

• Portfolio Allocation: 2.72%
• Recent Activity: Added 10.73%.
• Shares Held: 12,753,203.
• Reported Price: $11.17 per share.
• Value at Reported Price: $142,453,000.
• Current Price: $10.21 per share.
• Price Change: -8.59%.
• 52-Week Range: $9.66 – $14.85.

The increase in Vale shares reflects a positive view of the mining and metals sector, despite the current price being lower than the reported price. The addition suggests anticipation of future growth.

RWAY – Runway Growth Finance Corp

• Portfolio Allocation: 2.42%
• Recent Activity: Reduced holdings by 30.42%.
• Shares Held: 10,779,667.
• Reported Price: $11.76 per share.
• Value at Reported Price: $126,769,000.
• Current Price: $10.58 per share.
• Price Change: -10.03%.
• 52-Week Range: $9.87 – $12.65.

The substantial reduction in Runway Growth Finance shares indicates a cautious approach, possibly due to the declining price. The decision suggests a reassessment of the company’s growth potential.

FCX – Freeport-McMoran Inc.

• Portfolio Allocation: 2.24%
• Recent Activity: Reduced holdings by 18.69%.
• Shares Held: 2,417,907.
• Reported Price: $48.60 per share.
• Value at Reported Price: $117,510,000.
• Current Price: $43.58 per share.
• Price Change: -10.33%.
• 52-Week Range: $32.60 – $55.07.

The reduction in Freeport-McMoran shares suggests a strategic move to take profits or rebalance the portfolio, given the decline in price. This reduction could indicate concerns over volatility in the mining sector.

Analysis of Top Holdings:

1.   Torm Plc: The largest position, slightly reduced, with a minor price drop indicating continued confidence in the shipping sector.

2.   Chesapeake Energy: A slight reduction suggests caution amid price volatility in the energy sector.

3.   Garrett Motion Inc.: Stable position, with a slight price decline, indicating a steady outlook on automotive technology.

4.   Sitio Royalties Corp A: Stable holding in energy royalties, with a small price decrease.

5.   Star Bulk Carriers Corp.: Significant addition despite a current price drop, indicating confidence in long-term shipping prospects.

6.   AngloGold Ashanti Ltd.: Added shares with a strong price increase, reflecting bullish sentiment in the gold mining sector.

7.   Infinera Corp.: Stable position with a minor price drop, suggesting steady confidence in telecommunications equipment.

8.   Vale SA: Added shares despite a price drop, indicating confidence in the mining sector’s long-term prospects.

9.   Runway Growth Finance Corp: Substantial reduction amid price decline, reflecting a more cautious outlook.

10.                 Freeport-McMoran Inc.: Reduced shares, likely due to price volatility in the mining sector.

Overall, Howard Marks’ Q2 2024 portfolio reflects strategic adjustments, with a mix of profit-taking, cautious reductions, and confident additions in key sectors such as energy, mining, and transportation. The portfolio is positioned to balance potential risks with long-term growth opportunities.