To The Moon

Among the global investment giants with a management scale of more than USD 3.5 billion, there are two that made positive returns in 2022, within which, Howard Marks tops the result far ahead with a yield of 26.71%.

With the recent disclosure of 13F, Howard Marks latest investment action also surfaced.

Oaktree Capital Management is based out of Los Angeles. Oaktree Capital Management is a hedge fund with 310 clients and discretionary assets under management (AUM) of $147,452,182,548 (Form ADV from 2022-11-02). Their last reported 13F filing for Q3 2022 included $9,108,674,000 in managed 13F securities and a top 10 holdings concentration of 52.56%.

The Latest Holdings of Oaktree Capital

Howard Marks, the chairman of OakTree Capital Management, has always favored the inefficient market and invested heavily in debt, preferred shares and convertible bonds. And the big profits in 2022 is mainly due to its capture of energy stocks.

Since the beginning of 2021, Oaktree Capital has significantly increased its distribution of energy stocks in terms of stock positions.According to the 13F quarterly report submitted to theSECby Oaktree Capital,the total size of Oaktree Capital's holdings at the end of the third quarter in 2022 was USD 9.109 billion, an increase of USD 500 million from USD8.608 billion in last third quarter.

In detail, Oaktree Capital entered 5 stocks including Brazilian digital payment company $Pagseguro Digital Ltd.(PAGS)$ , $Sitio Royalties Corp.(STR)$ in the third quarter and increased holdings in six stocks, which including , $Vale SA(VALE)$ and $Freeport Resources Inc.(FEERF)$ .

Oaktree Capital Reduced holdings of 25 stocks, for like Brazilian oil company Petrobras and etc, and sold out 66 stocks of $Hertz Global Holdings, Inc.(HTZ)$ , the world's largest car rental company, Real Estate Investment Trust $CBL & Associates Properties, Inc.(CBL)$.

The top 10 holdings in Q3 stocks were $Torm PLC(TRMD)$ , $Chesapeake(CHK)$ ,$Vistra Energy Corp.(VST)$ , $Garrett Motion Inc.(GTXAP)$, $Star Bulk Carriers(SBLK)$, $PG&E Corp(PCG)$ , $Runway Growth Finance Corp.(RWAY)$ .

Data：https://whalewisdom.com

(Notes:The objective data and information, do not constitute any investment advice)

The largest position is $Torm PLC(TRMD)$ , which is one of the largest oil product transportation companies in the world. Howard Marks has been dormant this stock since 2019 and has patiently held it all the way up to now. At present, it has more than tripled its profit. Then the American oil and gas producer $Chesapeake(CHK)$ , the second largest holding. And the Texas power energy company $Vistra Energy Corp.(VST)$ ,the third largest holding.

Under inflation and geographical war, as well as the imbalance of demand, maybe these positions could make the revenue of Orktree fly a little longer?

Why Howard Marks is So Famous?

Howard Marks is a recognized investment master on Wall Street. Since the 1990s, Warren Buffett has been a loyal reader of his investment memos published irregularly.After graduating from Wharton Business School, Howard Marks entered Citibank in 1968 and began to study investment. He studied under Professor Siegel and followed the "Beautiful 50" investment law,that is, to invest in the 50 companies with the best and fastest development in the United States at any price.From 1970 to 1972, the P/E ratio of many beautiful 50 stocks was more than 80 times. Then, from 1973 to 1974, the share price of Beautiful 50 Company plummeted rapidly. In the following years, the lowest valuation fell to single digits, and the stock price fell by 60%~80%.

Nifty-50 gave a lively investment lesson to Howard Marks, who just started his career, which led him to think deeply: "Investment is not about what you buy, but what price you pay. Investment is not about buying good things, but buy at right price."Howard put forward a bold view: if you want to make a real fortune in the investment market, you must not follow the market trend. It is a mistake for beginners to blindly "follow the trend". Only by sticking to "reverse investment" can we win the market.

Howard's Latest Insights: Staying Still is the Right Strategy

The $NASDAQ(.IXIC)$ index has begun to fall after hitting 16,212.23 points in November last year, and rebounded after hitting a new low of 10888.83 points on October 12 2022. How the market goes and is most concerned about where the US stock market is now.

Marks recently had a conversation with Sarah, the fund manager of SJP, a British investment institution, to discuss where US stocks have gone.Howard made it clear that the current US stock market is in the middle of the cycle, the security price is reasonable, and keeping still is the right strategy. Howard said frankly:

“In the first half of 2021, many assets such as tech stocks, green energy stocks, cryptocurrencies, etc. The market was over-speculated. People like those assets, but now they don't seem to like anything. At present, we have not seen excessive speculation, and the market is within a reasonable range. The market is no longer optimistic, but it has not reached a pessimistic moment.”

Howard pointed out that in his 53 years of career,there were only five times that the market entered the "moment of greed", but usually it was not in the greed trend, but in the middle.The United States has experienced 17 recessions, two were world wars periods, one Great Depression, and several small-scale wars, as well as several geopolitical conflicts.

On average, in the past 102 years, the annualized yield of the S&P 500 has exceeded 10%. Therefore, in the face of the "most uncertain" environment, rising and falling often occur, the economy will always welcome an upward trend, the company will always make profits, and the market will always rise.If you stick to long-term investments, you will benefit from these rising trends.

Don't try to buy or sell, and adjust your target frequently. Doing so will only complicate your portfolio.As things in the next 6 months and 12 months may not affect the next 10-30 years, I also encourage you to focus on your work and family, rather than worrying about whether there will be an economic recession in the next 12 months.

After listening to Howard's sharing, are you still nervous about investing?

Will you happy to hold your stocks still？