Each week, we unpack the latest high-conviction trades from legendary investors — revealing what they’re doubling down on, cutting loose, or quietly walking away from.
In the most recent quarter, Howard Marks significantly reduced several positions in his public equity portfolio. These reductions may reflect a reassessment of risk, valuation, or macro exposure — a classic playbook move from an investor who’s long preached caution during exuberant markets.
Here are the top five reductions by percentage change in common stocks:
1. Transportadora de Gas del Sur SA (PAM) – ↓38.98%
Marks trimmed nearly 310,000 shares of this Argentine gas transport company. With ongoing macro volatility in Latin America and currency risk in Argentina, this reduction could signal concerns about sovereign instability or a simple portfolio rebalancing away from emerging markets.
2. Daqo New Energy Corp (DO) – ↓37.42%
The solar materials company saw a cut of over 200,000 shares. Daqo operates in a volatile commodity space, and recent swings in polysilicon prices — combined with Chinese regulatory uncertainty — may have contributed to Marks pulling back.
3. Kanzhun Ltd (BZ) – ↓33.57%
A high-profile tech name out of China, Kanzhun is best known for its job recruitment platform, Boss Zhipin. Marks’ decision to scale back may reflect broad caution toward Chinese ADRs amid persistent regulatory risks and geopolitical tension.
4. California Resources Corp (CRC) – ↓32.73%
Despite a rally in energy names, Marks reduced his position in this oil and gas producer. The cut of 670,000 shares suggests a potential view that energy equities are now fairly valued — or that he’s locking in gains after a strong performance post-2022.
5. JD.com Inc (JD) – ↓31.86%
Marks trimmed nearly 450,000 shares of JD.com, one of China’s largest e-commerce platforms. But growth has slowed amid increased competition and weakening consumer sentiment. Reducing exposure here might signal a broader thematic shift away from Chinese tech or e-commerce saturation concerns.
Our Interpretation of the Sales Strategy
Howard Marks’ latest portfolio adjustments reflect a steady hand responding to shifting risks — particularly across emerging markets, energy, and China tech. Known for his deep cyclical insight and macro-aware positioning, Marks appears to be trimming names that may have appreciated strongly or now carry asymmetric downside risk.
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One Comment on “Howard Marks Trims the Fat: Top 5 Biggest Stock Reductions”
Another value added professional whose missives are worth the read.