Howard Marks – Oaktree Capital Management – Q4 2024 Top 10 Portfolio Holdings Analysis

Below is an updated overview of Howard Marks’ portfolio at Oaktree Capital Management for the fourth quarter of 2024. This snapshot highlights the fund’s focus on shipping, energy, and select industrial and technology plays, reflecting Oaktree’s value-driven approach and emphasis on assets with potential for steady cash flow.

1. TRMD – Torm Plc

• Portfolio Allocation: 17.41%
• Recent Activity: No change reported
• Shares Held: 40,581,120
• Reported Price: $19.22
• Value at Reported Price: $779,886,000

Torm Plc remains Oaktree’s largest holding, signifying ongoing confidence in the shipping sector. Torm specializes in transporting refined oil products, positioning the firm to benefit from consistent global demand for energy logistics. The maintained position suggests Oaktree still sees upside potential in maritime transport.

2. EXE – Expand Energy Corp.

• Portfolio Allocation: 15.42%
• Recent Activity: Added 0.97%
• Shares Held: 6,937,364
• Reported Price: $99.55
• Value at Reported Price: $690,615,000

Expand Energy Corp. remains a key energy holding, with a slight increase in shares indicating heightened conviction. As an integrated energy company, EXE provides exposure to upstream, midstream, and downstream operations—aligning with Oaktree’s preference for diversified energy plays that can capitalize on stable or rising commodity prices.

3. GTX – Garrett Motion Inc.

• Portfolio Allocation: 8.89%
• Recent Activity: No change reported
• Shares Held: 44,082,816
• Reported Price: $9.03
• Value at Reported Price: $398,068,000

Garrett Motion, a global provider of turbochargers and automotive technology, remains a prominent industrial holding. Oaktree’s ongoing stake reflects optimism in fuel efficiency and emission-reduction technologies—a vital component of modern powertrain systems, even amid the shift to electric vehicles.

4. STR – Sitio Royalties Corp A

• Portfolio Allocation: 5.54%
• Recent Activity: No change reported
• Shares Held: 12,935,120
• Reported Price: $19.18
• Value at Reported Price: $248,096,000

Sitio Royalties Corp focuses on mineral and royalty interests, primarily in the oil and gas sector. By holding this position, Oaktree gains exposure to production-based income streams without direct operational risks, fitting the fund’s strategy of seeking stable cash flow from energy assets.

5. INFN – Infinera Corp.

• Portfolio Allocation: 3.69%
• Recent Activity: No change reported
• Shares Held: 25,175,384
• Reported Price: $6.57
• Value at Reported Price: $165,402,000

Infinera, a developer of optical networking equipment, provides Oaktree with exposure to telecommunications infrastructure. Demand for high-speed data transmission continues to rise, and Infinera’s technology is integral to expanding digital networks worldwide.

6. STKL – SunOpta Inc.

• Portfolio Allocation: 3.56%
• Recent Activity: No change reported
• Shares Held: 20,726,126
• Reported Price: $7.69
• Value at Reported Price: $159,425,000

SunOpta, a producer of plant-based and organic foods, fits Oaktree’s interest in sustainable consumer trends. Its portfolio of non-dairy beverages, fruit-based products, and healthy snacks aligns with growing demand for health-conscious and environmentally friendly offerings.

7. AU – AngloGold Ashanti Ltd.

• Portfolio Allocation: 2.86%
• Recent Activity: Reduced 1.77%
• Shares Held: 5,557,551
• Reported Price: $23.08
• Value at Reported Price: $128,268,000

AngloGold Ashanti remains Oaktree’s precious metals play, providing a hedge against market volatility. The slight reduction may signal profit-taking or a portfolio rebalance, yet Oaktree maintains a material stake, reflecting continued belief in gold’s role as a defensive asset.

8. VIST – Vista Oil & Gas, S.A.B. de C.V.

• Portfolio Allocation: 2.77%
• Recent Activity: Reduced 8.39%
• Shares Held: 2,293,561
• Reported Price: $54.11
• Value at Reported Price: $124,105,000

Vista Oil & Gas, an independent Latin American exploration and production company, saw a moderate reduction. This move might indicate a shift in Oaktree’s allocation within the energy sector while maintaining exposure to potential growth in emerging market hydrocarbons.

9. RWAY – Runway Growth Finance Corp

• Portfolio Allocation: 2.64%
• Recent Activity: No change reported
• Shares Held: 10,779,667
• Reported Price: $10.96
• Value at Reported Price: $118,145,000

Runway Growth Finance offers debt solutions to growth-stage companies, providing Oaktree with exposure to the private credit market. The stable position suggests ongoing confidence in the potential of venture debt financing to deliver consistent returns.

10. INDV – Indivior Plc

• Portfolio Allocation: 2.50%
• Recent Activity: Reduced 8.28%
• Shares Held: 8,733,548
• Reported Price: $12.82
• Value at Reported Price: $112,004,000

Indivior, a pharmaceutical company focusing on addiction treatments, remains in the portfolio despite a partial sell-down. The reduction could reflect profit-taking or capital reallocation, but Indivior’s commitment to addressing opioid dependence likely still resonates with Oaktree’s strategy of investing in businesses with resilient demand.

Analysis of Howard Marks’ Q4 2024 Portfolio Strategy

1.  Core Emphasis on Shipping and Energy
Torm Plc and Expand Energy remain top holdings, underscoring Oaktree’s belief in stable demand for shipping and integrated energy solutions. This focus suggests confidence in sectors tied to global economic activity and commodity flows.

2.  Selective Adjustments in Commodity and Emerging Markets
Slight reductions in AngloGold Ashanti, Vista Oil & Gas, and Indivior point to tactical rebalancing, capturing gains or mitigating risk while still retaining core exposure to gold, Latin American energy, and pharmaceutical demand.

3.  Diverse Industrial & Tech Exposure
Garrett Motion (auto technology), Infinera (telecom infrastructure), and SunOpta (plant-based foods) highlight Oaktree’s strategy of investing in essential, high-potential industries. These holdings align with structural shifts in consumer preferences and technological innovation.

4.  Steady Income-Oriented Positions
Sitio Royalties (energy royalties) and Runway Growth Finance (venture debt) provide cash-flow-focused investments, consistent with Oaktree’s emphasis on stable, yield-generating assets that can weather market volatility.

Conclusion

Howard Marks’ Q4 2024 portfolio at Oaktree Capital Management demonstrates a commitment to shipping, energy, and industrial innovation, balanced by targeted exposures in precious metals, emerging markets, and specialty finance. Moderate reductions in select holdings suggest tactical rebalancing, while the high allocation to Torm and Expand Energy underscores continued confidence in global trade and commodity demand. Overall, the portfolio reflects Oaktree’s value-oriented approach to sectors poised for steady growth and recurring income.

Disclaimer:
This analysis is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investing involves risks, including the potential loss of principal. Past performance is not indicative of future results. Investors should conduct their own research or consult a qualified financial advisor before making investment decisions.