5 Best Stocks to Buy Now According to Billionaire Howard Marks’ Oaktree Capital

In this article, we will take a look at the five best stocks to buy according to billionaire Howard Marks’ Oaktree Capital. If you want to find out about more stocks and the hedge fund investor, head on over to 10 Best Stocks to Buy Now According to Billionaire Howard Marks’ Oaktree Capital. 

5. Garrett Motion Inc. (NASDAQ:GTX)

Oaktree Capital’s Stake Value: $565 million

Percentage of Oaktree Capital’s 13F Portfolio: 6.57%

Number of Hedge Fund Holders: 23

Garrett Motion Inc. (NASDAQ:GTX) is an automotive company that sells products for commercial vehicles. The firm offers turbochargers for gasoline and diesel engines. It is headquartered in Role, Switzerland.

Mr. Marks’ firm held a $565 million stake in Garrett Motion Inc. (NASDAQ:GTX) as part of its Q2 2022 holdings. These came in the form of 68 million shares and represented 6.57% of its investment portfolio. For the same time period, 23 out of the 895 hedge funds polled by Insider Monkey had also invested in the company.

Garrett Motion Inc. (NASDAQ:GTX) is one of the largest players in the global turbocharger industry. This industry is worth $10 billion according to some estimates and it commands a 32% volume of this industry.

Garrett Motion Inc. (NASDAQ:GTX)’s largest investor after Oaktree Capital in our database is Mark T. Gallogly’s Centerbridge Partners which owns 66 million shares that are worth $544 million.

Alluvial Capital Management mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

“Garrett Motion is an exercise in patience. Just as it seemed the global automotive market was about to recover to pre-COVID production, along came Russia, inflation, and the threat of recession. Still, the company is making great strides in improving and simplifying its balance sheet. In June, the company redeemed the rest of the Series B preferred shares it issued to Honeywell when it exited bankruptcy in 2021. With the Series Bs out of the way, Garrett Motion is free to dedicate its cash flow to continued deleveraging or share buybacks. At some point in the next year or two, the conditions will be met for Garrett Motion to convert these preferreds and simplify their capital structure. If the market stubbornly refuses to value Garrett Motion shares at a reasonable price, I believe the company will pursue a sale or merger. Until then, our preferred shares will continue to accrue dividends at an attractive yield. The preferreds are worth at least $15 today, and possibly $20 or more if the company can reduce leverage and/or buy back shares and the automotive market recovers.”