Oaktree Capital Management is an alternative investment manager that was launched back in 1995 by a group of individuals who had been working together at TCW Group. Among them was Howard Marks, who is the fund’s current co-Chairman. Mr. Marks, a chartered financial analyst, earned a B.S.Ec. degree cum laude from the Wharton School of the University of Pennsylvania with a major in Finance and an M.B.A. in Accounting and Marketing from the Booth School of Business of the University of Chicago. The fund’s main headquarters are in Los Angeles, but it provides additional offices in New York, Houston, Stamford, Tokyo, Hong Kong, Singapore, Bejing, Seoul, Dubai, Shanghai, Paris, Amsterdam, Luxembourg, Sydney, London, Frankfurt, and Dublin. Oaktree Capital Management’s specialties include corporate debt, distressed debt, and convertible securities. Today, we are going to present the fund’s most interesting Q1 2019 investment moves.
Insider Monkey’s flagship strategy identifies the best performing 100 hedge funds at the end of each quarter and invests in their consensus stock picks. This way it is always invested in the best ideas of the best performing hedge funds and is able to generate much higher returns than the market. Since its inception in May 2014, our flagship strategy generated a cumulative return of 103%, beating the S&P 500 ETF (SPY) by nearly 38 percentage points (see the details here). Our best performing hedge funds strategy also returned 26.4% year-to-date and outperformed the S&P 500 Index by nearly 12 percentage points. We take a closer look at hedge funds like Oaktree Capital Management in order to identify their best and worst ideas.
On March 31st, 2019, Oaktree Capital Management’s equity portfolio was valued $5.27 billion, down by almost 52% from $10.97 billion at the end of the previous quarter. New positions included Berry Petroleum Corporation (NASDAQ:BRY), SIGA Technologies, Inc. (NASDAQ:SIGA), and Diamond S Shipping Inc. (NYSE:DSSI). Stakes that the fund raised during the quarter counted Star Bulk Carriers Corp. (NASDAQ:SBLK), Caesars Entertainment Corporation (NASDAQ:CZR), Eagle Bulk Shipping Inc. (NASDAQ:EGLE), and ICICI Bank Limited (NYSE:IBN).
Among the stocks the fund decided to dump during this quarter were Vale S.A. (NYSE:VALE), C&J Energy Services, Inc. (NYSE:CJ), NXP Semiconductors N.V. (NASDAQ:NXPI), and Rowan Companies plc (NYSE:RDC). During Q1 2019, Oaktree Capital Management also lowered its stakes in Vistra Energy Corp. (NYSE:VST), Ally Financial Inc. (NYSE:ALLY), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR-A).
This article is originally published at Insider Monkey.