Howard Marks' Full Presentation On "Investing In Uncertain Times"

In the following presentation, given by Howard Marks - the world's largest distressed debt investor - he warns of the perils of "investing in uncertain times." As Reuters notes, he fears the "unsound practices" from before the financial crisis are creeping back into credit markets, with private equity firms bidding increasingly high prices for companies. Marks points out the ease with which lowly rated companies were issuing debt this year, how companies were paying out record dividends to their shareholders and the increasingly high debt-to-equity multiples private equity firms were paying for companies amid a resurgence in deals. "We have a world in which nobody is thinking bullish. Everybody's worried and yet people are acting bullish," and predicts a looming "shake-out" in the hedge fund industry as he asks rhetorically, "today there are 8,000 hedge funds. Are there really 40,000 exceptional people (working for hedge funds)?" In conclusion, Oaktree Capital's founder warns that investors, in their search for returns, were becoming overly confident while the economic background was still gloomy.

Howard Marks - Investing in Uncertain Times

Howard Marks Gains 133% on Eagle Sell, Four Reduced in First Quarter

Oaktree Capital's Howard Marks , the genius memo writer preferred by other billionaire Gurus and Wall Street investors, sold only one holding as of quarter ending March 31, 2013. Investor Guru Marks made a gain of 133% on his sell out of the shipping company Eagle Bulk Shipping Inc. ( EGLE ). He also reduced four other positions, making solid gains there as well. Here are the details of his first quarter 2013 sells:

Sold Out: Eagle Bulk Shipping Inc. ( EGLE ) - Shipping & Ports

Howard Marks sold out his position with EGLE, as of March 31, 2013. He sold a little more than 1.5 million shares at an average price of $2.30 per share, for a gain of 133%; the previous quarter he gained 112.7%, after four rocky quarters.

This trade impacts his portfolio by -0.09%.

The current share price is $5.36 compared to past valuations:


Reduced: Charter Communications Inc. ( CHTR ) - Pay TV

Howard Marks reduced his CHTR position by 83.54%, as of March 31, 2013. He sold more than 10 million shares at an average price of $85 per share, for a gain of 34.1%. His average price on around 19.7 million shares bought is $33.86 per share for a 237% gain. Howard Marks owns 2 million shares after the trade.

This trade impacts his portfolio by -31.16%.

The current share price is $114.00.

Reduced: Delphi Automotive PLC ( DLPH ) - Auto Parts

Howard Marks also reduced his DLPH position by 37.51%, as of March 31, 2013. He sold 2,400,728 shares at an average price of $40.39 per share, for a gain of 21.4%. His average price on around 14 million shares bought is $28.99 per share for a 69% gain. Marks holds 4 million shares after the trade.

This trade impacts his portfolio by -3.71%.

The current share price is $49.05.
Reduced: CIT Group Inc. ( CIT ) - Specialty Finance

Howard Marks reduced his CIT position by 89.26%, as of March 31, 2013. He sold a little more than 3.37 million shares at an average price of $42.08 per share, for a gain of 6.6%. His average price on around 8.9 million shares bought is $42.08 per share for a 25% gain. Marks holds 405,979 shares after the trade.

This trade impacts his portfolio by -5.27%.

The current share price is $44.84. 

Reduced: General Motors Co. ( GMPRB ) - Auto Manufacturers

Howard Marks also reduced his General Motors Co. Preferred Shares position by 70.06%, as of March 31, 2013. He sold shares at an average price of $43.75 per share. Marks owns 427,400 shares after the trade.

This trade impacts his portfolio by -1.75%.

Chairman of Oaktree Capital since its formation in 1995, Howard Marks has a global reach. His portfolio lists 88 stocks, seven of them new, with a total value of $4.9 billion, and a quarter-over-quarter turnover of 5%. With around $78 billion in assets under management, Oaktree Capital invests in less efficient markets and alternative investments, looking to a variety of strategies, including corporate debt, convertible securities, distressed debt, control investing, real estate and emerging markets in the Asia Pacific region, Latin America, Eastern Europe, the Middle East, Africa and Russia. As of March 2013, Howard Marks has a net worth of $1.65 billion.