Howard Marks

At Oaktree's 2026 client conference, Howard Marks discussed the firm's investment philosophy centered on exploiting market mispricings. Marks emphasized that superior returns require buying assets below fair value, which demands finding sellers making mistakes—often through complexity, forced selling, or misunderstanding. He noted that direct lending, once a high-return opportunity, has become commoditized with returns now merely adequate rather than exceptional. Marks warned against chasing popular sectors like European healthcare, where excessive leverage compounds risk. He stressed that leadership quality and company culture directly impact asset value, and that human emotion—fear and greed—drives market cycles. Marks expressed cautious optimism for 2026, expecting better buying opportunities as market sentiment shifts from FOMO to risk aversion.