The Memo by Howard Marks 30 Years of Oaktree
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May 6, 2025 
Bruce Karsh, Co-Chairman and Chief Investment Officer at Oaktree Capital Management, shares insights from his three-decade journey co-founding the firm alongside Howard Marks and Sheldon Stone. They recount the heartwarming origins of Oaktree, including the humorous dinner conversation that sparked its creation. The trio reflects on foundational values, the significance of relationships in investment, and their first year's surprising financial success. They also celebrate the comforting stability of Oaktree while expressing gratitude for their colleagues as they approach the firm's 30th anniversary.
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Founders' Meeting Sparked Oaktree
- Bruce Karsh initiated Oaktree by pitching the idea of a distressed debt fund to Howard Marks, who supported it and brought Sheldon Stone on board.
- Sheldon was enthusiastic about focusing on the turnaround portion of high-yield bonds, leading to their successful collaboration.
Dinner Sparked Oaktree's Start
- The idea to start Oaktree was sparked during a dinner between the Marks and Karsh families discussing Montecito.
- Howard Marks proposed economics promptly; they agreed quickly, and Sheldon was the first hire for the new firm.
Document Investment Philosophy Early
- Write down and clearly state your investment philosophy from the start to guide everyone consistently.
- Unchanging principles help maintain clarity and cohesion across decades in business practice.