Markets

Howard Marks' Largest Trades in Second Quarter

Howard Marks ( Trades , Portfolio ) has been the chairman of Oaktree Capital Management L.P. since its formation in 1995. He manages a portfolio composed of 68 stocks with a total value of $5.33 billion.

During the last quarter he has done about 50 trades, selling out seven stakes, reducing 18 and increasing 17 of his existing stakes and buying eight new stocks; the following are the most weighted of these trades.

Marks reduced his stake in Tribune Media Co. ( TRCO ) by 24.62% with an impact of 4.53% on his portfolio.

Tribune Media is one of the country's largest media companies. It reaches more than 80% of U.S. households and is the only media organization with newspapers, TV stations and websites in the nation's top three markets. Tribune's newspapers include the Los Angeles Times , Chicago Tribune and Newsday .

During the last quarter consolidated operating revenue grew 6%, but consolidated Adjusted EBITDA decreased 29%.

The stock is trading with a P/E ratio of 114.70 and has been as high as $71.00 and as low as $34.38 in the past year. It is currently 51.46% below its 52-week high and 0.23% above its 52-week low. According to the DCF calculator, the company currently looks overpriced by 283%.

Howard Marks (Trades, Portfolio) holds 15.02% of outstanding shares of the company and is the main shareholder among the gurus; the second is the hedge fund PRIMECAP Management (Trades, Portfolio) with 7.74% followed by Manning & Napier Advisors Inc. with 5.48%.

He reduced his stake in STORE Capital Corp. ( STOR ) by 11.82% with an impact of 3.65% on his portfolio.

STORE Capital is an internally managed net-lease real estate investment trust. It owns a diversified portfolio that consists of investments in approximately 767 property locations in 43 states.

The stock is trading with a P/E ratio of 40.86 and has been as high as $24.06 and as low as $19.25 in the past year. It is currently 14.55% below its 52-week high and 6.81% above its 52-week low. According to the DCF calculator, the company currently looks overpriced by 203%.

Howard Marks (Trades, Portfolio) holds more than half (57.1%) of the company's outstanding shares and is the main shareholder. The second one is the hedge fund Pioneer Investments (Trades, Portfolio) with 0.06% and Paul Tudor Jones (Trades, Portfolio) with 0.05%.

He bought 13,052,534 shares in Gener8 Maritime Inc. ( GNRT ) with an impact of 3.34% on his portfolio.

The company is a provider of international seaborne crude oil transportation services. It also provides transportation services for refined petroleum products.

The stock is trading with a forward P/E ratio of 5.16 and has been as high as $14.82 and as low as $10.85 in the past year. It is currently 26.11% below its 52-week high and 0.92% above its 52-week low.

The company has been bought by six investors during the last quarter. The biggest stake is held by Howard Marks (Trades, Portfolio) and is 15.93% of outstanding shares, then Steven Cohen (Trades, Portfolio) with 0.79%, Louis Moore Bacon (Trades, Portfolio) with 0.43%, Jana Partners (Trades, Portfolio) with 0.43% and Leon Cooperman (Trades, Portfolio) with 0.18%.

He increased his stake in Star Bulk Carriers Corp. ( SBLK ) by 37.71% with an impact of 1.71% on his portfolio.

It provides transportation of drybulk commodities through its vessel-owning subsidiaries for a range of customers of bulk cargoes including iron ore, coal, grain, cement and fertilizer. The company owns and operates a fleet of 17 vessels consisting of five Capesize drybulk carriers, two Post Panamax drybulk carriers, two Ultramax drybulk carriers and eight Supramax drybulk carriers with an average age of 8.9 years and a combined cargo-carrying capacity of approximately 1,610,935 dwt.

The stock is trading with a forward P/E ratio of 32.05 and has been as high as $2.48 and as low as $2.18 in the past year. It is currently 80.66% below its 52-week high and 10.50% above its 52-week low.

Howard Marks (Trades, Portfolio) holds 51.68% of outstanding shares of the company that is 6.24% of his total assets.

He bought 71,000 shares of Allergan PLC ( AGN ) with an impact of 1.39% on his portfolio.

Allergan is an integrated specialty pharmaceutical company. The company is engaged in development, manufacturing, marketing, sale and distribution of generic, branded generic, brand name, biosimilar and over-the-counter pharmaceutical products. It also develops and out-licenses generic pharmaceutical products in Europe through its Medis third-party business. It operates in three segments - pharma, specialty brands and anda distribution.

Allergan reported the second quarter with a 203% increase in adjusted EBITDA and 116% increase in net revenue along 29% growth in non-GAAP EPS. The company also made the bold decision to divest its generics business to Teva and to streamline its operations with laser-sharp focus on its future as a branded Growth Pharma leader.

The stock is trading with a forward P/E ratio of 13.50 and has been as high as $276.45 and as low as $247.74 in the past year. It is currently 25.11% below its 52-week high and 22.16% above its 52-week low.

Vanguard Health Care Fund (Trades, Portfolio) is the main hedge fund of the company with 2.3% of outstanding shares, followed by John Paulson (Trades, Portfolio) with 1.82% and Andreas Halvorsen (Trades, Portfolio) with 1.73%. Marks holds a small stake of 0.02% of outstanding shares that represent the 1.39% of his total assets.

He reduced his stake in Masonite International Corp. ( DOOR ) by 49.31% with an impact 0.87% on his portfolio.

Masonite International is one of the world's leading manufacturers of interior doors and entry door systems.

Throughout the company's 80-year history, Masonite has maintained its focus on leading-edge innovation, manufacturing excellence and superior customer service.

During the last quarter adjusted EBITDA increased by 34.0%, while net sales decreased by 2.8% compared to the same quarter of a year before. The company reported 2Q15 with increase of 340 basis points to 12.4% for adjusted EBITDA margin versus 9.0% in the comparable 2014 period.

The stock is trading with a P/B ratio of 2.77 and is currently 15.79% below its 52-week high and 18.45% above its 52-week low.

Ron Baron (Trades, Portfolio) is the main shareholder of the company with 8.47% of outstanding shares, followed by HOTCHKIS & WILEY with 4.29% and RS Investment Management (Trades, Portfolio) with 2.85%.

He sold out his stake in Tata Motors Ltd. (TTM) with an impact of 0.62% on his portfolio.

The company is a manufacturer of commercial and passenger vehicles. The company has presence across 175 countries; its cars, buses and trucks are marketed in several countries in Europe, Africa, the Middle East, South Asia, South East Asia, South America, CIS and Russia.

Because of the adverse mark-to-market on unrealized hedges, the EBITDA has come in marginally lower at 9,250 crores as compared to 10,777 crores and for full year EBITDA margin is minus 2.2% as compared to minus 1.4% last year.

The stock is trading with a P/E ratio of 6.25 and is currently 58.05% below its 52-week high and 0.79% above its 52-week low. According to the DCF calculator, the company currently looks undervalued and is trading with a margin of safety of 51%.

Ken Fisher (Trades, Portfolio) is the main shareholder of the company with 1.26% of outstanding shares, followed by Jeremy Grantham (Trades, Portfolio) with 0.20% and Sarah Ketterer (Trades, Portfolio) with 0.16%.

He reduced his stake in Amsurg Corp. (AMSGP) by 98.22% with an impact of 0.55% on his portfolio.

The company owns and operates short stay ambulatory surgery centers or ASCs in the U.S. The company acquires, develops and operates ASCs through the formation of strategic partnerships with physicians to serve the communities in its markets.

It reported the second quarter with an increase of 131% for net revenues compared to the second quarter of 2014 and adjusted net earnings as well had increase of 131%.

The stock is trading with a P/E ratio of 57.30 and has been as high as $150.34 and as low as $146.55 in the past year. It is currently 10.53% below its 52-week high and 42.06% above its 52-week low.

Howard Marks (Trades, Portfolio) is still the only guru shareholder of the company, and he almost sold out his stake.

He bought 2,055,825 shares of Telefonica Brasil SA (VIV) with an impact of 0.54% on his portfolio.

Telefonica Brasil is a corporation organized under the laws of the Federative Republic of Brazil. The company provides fixed-line telecommunications services in Sao Paulo under concession agreements granted by the Brazilian government in connection with the restructuring and privatization of the Telebras System.

For 2Q15, gross margins narrowed from 48.69% to 45.22% and as a result of decline in earnings operating (EBITDA) margins narrowed to 28.42% from 28.53% compared to the same quarter last year.

The stock is trading with a P/E ratio of 9.79 and has been as high as $9.13 and as low as $8.78 in the past year. It is currently 58.78% below its 52-week high and 1.62% above its 52-week low and according to the DCF calculator, the company currently looks undervalued by 47%.

The main shareholder of the company is Charles Brandes (Trades, Portfolio) with 0.71% of outstanding shares, followed by Daniel Loeb (Trades, Portfolio) with 0.44% and Jeremy Grantham (Trades, Portfolio) with 0.39%.

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This article first appeared on GuruFocus .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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