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Some peculiar Oaktree holdings


yadayada
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http://www.sec.gov/Archives/edgar/data/949509/000094950914000007/xslForm13F_X01/2Q14_13F_XML.xml

 

How much influence does howard marks have here? I see Tesla salesforce.com and solar city. Also some other strange holdings. They are pretty large too. Also Ally financial is a headscratcher.

 

I think you are the laughing stock on this board arguing these as longs, yet THE howard marks seem to like them (or his team of analysts do).

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you are looking at convertible bonds, not common stock.

 

companies in need of capital that have arguably high stock prices relative to intrinsic value and high implied vol monetize both by issuing converts.

 

the co's get an incredibly low cost of capital and defer dilution, the bond buyers get the optionality of the upside/growth story without risking permanent impairment like you would with the equity and can  use the bonds to do convert arb. everyone wins unless short rates rise and the stocks fall at the same time.

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Guest wellmont

marks doesn't make every investment decision at Oaktree. he has established a culture, hired really smart people,  and let his teams do the investing....

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Please, let's take a look at Oaktree and the number of its portfolio managers.

http://www.oaktreecapital.com/people/portfolio-managers.aspx

 

Now let's take a look at their 'strategies' (read: funds):

http://www.oaktreecapital.com/strategies/

 

Public equities are $3.4bn of the total of $91bn in AUM:

http://www.oaktreecapital.com/about/

 

The consolidated Oaktree 13F does not represent the "Howard Marks portfolio". It represents the equity & equity-linked holdings of a large, diversified credit and distressed alternative asset management firm with a variety of funds, strategies and managers. Marks may be the voice and face of Oaktree, but he is not picking the stocks here..

 

A good chunk of the US equities (unless they are debt related and part of one of the distressed funds) was probably selected by this team:

http://www.oaktreecapital.com/people/team.aspx?cat=listed-equities&t=value-equities

 

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