Oaktree Made Money on First Brands With Early Exit, Marks Says

Distressed-debt specialist Oaktree Capital Management made a profit from investing in collapsed auto-parts supplier First Brands Group, according to co-founder Howard Marks, a rare feat as some of Wall Street’s biggest firms face losses.

“I’m very proud to say that we started to sense red flags on First Brands several months ago and exited our positions,” Marks said via video feed at the Cathay Asset Management Summit in Taipei on Wednesday. “Overall I think we made money on First Brands, so a good credit manager can avoid many pitfalls.”

Marks said that in general, too many credit providers ...