"I put some more emphasis on worrying about losing money today than I do about missing opportunities because I don't see such great opportunities..."
"I think you have to have plenty of defense on the field today."
He also talked about how his firm assesses market risk (watch the full interview below). Oaktree Capital, which has $91 billion in assets under management, specializes in "less efficient markets and alternative investments," according to its website. The fund owns corporate debt, distressed debt, private equity/distress-for-control investments (control investing), convertible securities, real estate, and listed equities. According to a recent Bloomberg article, Oaktree plans to raise $10 billion for distressed opportunities.
The world’s biggest distressed-debt investor is seeking $10 billion for a new fund with plans to sit on most of the capital until rising markets reverse course, three people with knowledge of the plans said. Oaktree plans to raise $3 billion that it can start investing immediately and $7 billion for a reserve pool to deploy when more distressed opportunities arise, said the people, who requested anonymity because the plans aren’t public.
Howard Marks' most recent client memo titled "Risk Revisited" is available at oaktreecapital.com.