Capital Allocators – Inside the Institutional Investment Industry Top 5 of 2025: #1: Howard Marks
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Dec 29, 2025 
Howard Marks, co-founder of Oaktree Capital Management and renowned for his insightful investor memos, dives into the evolution of credit markets and the risks associated with private credit. He reveals valuable lessons from past market experiences, emphasizing the importance of valuation. Marks also shares insights into Oaktree's disciplined investment philosophy and highlights the current landscape's challenges, including soft underwriting standards and the impacts of rising rates on private equity. Reflecting on investor psychology, he stresses the necessity of adapting through cycles.
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Price Trumps Quality Every Time
- Howard Marks argues that price, not inherent quality, determines investment outcomes.
- He warns that no asset is so good it can't become dangerously overpriced.
Only Publish Distinct Ideas
- Write or explain ideas only when you can add a distinct perspective or clarity.
- Avoid publishing memos that merely echo prevailing views.
How Credit Markets Transformed
- Credit markets evolved from near absence to large private credit and leveraged loan markets.
- Structural shifts—LBOs, senior loans, and alternatives—reshaped how companies access capital.
