Howard Marks - Oaktree Capital Management Portfolio in 2026: Top Holdings & Recent Changes
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Howard Marks, co-founder of Oaktree Capital Management, showcases his signature approach to distressed and opportunistic investing through the firm's latest 13F filing. The $6.5B Q3 2025 portfolio reflects active management with notable reductions in select positions alongside fresh buys in energy and tech, signaling adaptability in a volatile market while trimming the overall position count.
Portfolio Snapshot: Balanced Concentration with Opportunistic Shifts
Portfolio Highlights (Q3’2025): - Market Value: $6,490.3M - Top 10 Holdings: 47.6% - Portfolio Size: 165 -15 - Average Holding Period: 6 quarters - Turnover: 45.5%
Oaktree's portfolio maintains a disciplined concentration in its top positions, with the top 10 comprising nearly half of the $6.5 billion total, underscoring Howard Marks' philosophy of focusing on high-conviction ideas in undervalued or distressed assets. The reduction in portfolio size by 15 positions suggests a deliberate pruning process, likely aimed at enhancing returns amid market rotations. This aligns with Oaktree's reputation for capitalizing on market inefficiencies, particularly in cyclical sectors.
The 45.5% turnover rate indicates significant activity quarter-over-quarter, higher than typical for long-term value managers but consistent with Marks' opportunistic style—buying when fear dominates and selling into strength. With an average holding period of just 6 quarters, the Oaktree portfolio balances patience with agility, allowing for tactical shifts without abandoning core distressed value principles. This dynamic approach positions the fund to navigate economic uncertainty effectively.
Key Positions: Reductions in Commodities, Bets on Energy and Tech
Oaktree's recent moves highlight a mix of trims and additions, starting with Expand Energy Corporation (EXE) at 8.3% after a "Reduce 0.00%" adjustment, maintaining its strong second-place weighting. Garrett Motion Inc. (GTX) follows at 6.7% with a Reduce 13.55% cut, while AngloGold Ashanti Limited (AU) 4.5% saw a sharper Reduce 15.41% reduction, potentially signaling caution in gold amid shifting commodity dynamics.
Newer bets include Viper Energy Partners LP (VNOM) (3.7%, Buy), STATE STREET CORP (_) (3.4%, Reduce 52.17%), Telephone and Data Systems, Inc. (TDS) (2.2%, Buy), and Oracle Corporation (ORCL) (2.2%, Buy). Talen Energy Corporation (TLN) 1.9% stands out with an aggressive Add 124.23%, reflecting conviction in energy infrastructure.
Rounding out activity, Core Scientific, Inc. (CORZ) (1.8%, Buy) enters as a fresh position in data centers, and Barnes Group Inc. (B) (1.7%, Add 4.57%) shows modest growth. Top unchanged anchors like TORM plc (TRMD) (12.9%, No change) and SunOpta Inc. (STKL) (1.9%, No change) provide stability, blending shipping and consumer staples into the mix.
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What the Portfolio Reveals About Oaktree's Strategy
Oaktree's Q3 moves reveal a risk-aware strategy emphasizing cyclical value with selective growth exposure. Heavy concentration in energy (EXE, VNOM, TLN) and commodities (AU, TRMD) underscores a bet on undervalued assets in volatile sectors, trimmed where valuations stretched.
Sector focus tilts toward industrials (GTX) and tech (ORCL, CORZ), blending distress opportunities with quality names. High turnover 45.5% and portfolio shrinkage signal active risk management, reducing exposure to overextended positions like STATE STREET CORP while initiating buys in high-potential turnarounds.
Geographically diverse with international plays like AU and TRMD, the portfolio prioritizes margin of safety in beaten-down names, true to Marks' memos on market cycles.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| TORM plc (TRMD) | $834.6M | 12.9% | No change |
| Expand Energy Corporation (EXE) | $537.8M | 8.3% | Reduce 0.00% |
| Garrett Motion Inc. (GTX) | $434.4M | 6.7% | Reduce 13.55% |
| AngloGold Ashanti Limited (AU) | $294.3M | 4.5% | Reduce 15.41% |
| Viper Energy Partners LP (VNOM) | $240.2M | 3.7% | Buy |
| STATE STREET CORP (_) | $219.8M | 3.4% | Reduce 52.17% |
| Telephone and Data Systems, Inc. (TDS) | $144.7M | 2.2% | Buy |
| Oracle Corporation (ORCL) | $140.6M | 2.2% | Buy |
| Talen Energy Corporation (TLN) | $123.8M | 1.9% | Add 124.23% |
| SunOpta Inc. (STKL) | $121.4M | 1.9% | No change |
This table illustrates Oaktree's measured concentration, with TRMD as the standout 12.9% anchor amid mostly stable or trimmed top holdings. Significant reductions in STATE STREET CORP 52.17% and AU 15.41% freed capital for aggressive adds like TLN 124.23%, highlighting tactical reallocation.
The 47.6% top-10 weighting supports high-conviction bets without over-reliance on any single name, balancing risk in a 165-position portfolio. This structure exemplifies Marks' focus on asymmetric opportunities where downside is limited.
Investment Lessons from Howard Marks' Oaktree Approach
- Cycle awareness drives timing: Trims in gold (AU) and financials show selling strength, per Marks' market cycle memos.
- Opportunistic buys in distress: New positions like VNOM and CORZ target undervalued sectors with recovery potential.
- Turnover as a tool, not a flaw: 45.5% activity reflects active monitoring, not trading frenzy—prune to focus on best ideas.
- Concentration with diversification: Top 10 at 47.6% across 165 holdings balances conviction and prudence.
- Margin of safety in cyclicals: Emphasis on shipping (TRMD), energy underscores buying fear.
Looking Ahead: What Comes Next?
Oaktree's high turnover and portfolio trim suggest ample dry powder for deployments in distressed assets, especially if commodities weaken further. Energy exposure via VNOM and TLN positions well for oil volatility, while tech adds like ORCL hedge against AI-driven growth.
In uncertain markets, expect Marks to hunt turnarounds in industrials and data infrastructure (CORZ), leveraging the 6-quarter hold average for patient upside. Track the Oaktree portfolio for signals on broader risk appetite.
FAQ about Howard Marks Oaktree Capital Portfolio
Q: What are the biggest changes in Oaktree's Q3 2025 13F filing?
A: Key reductions include STATE STREET CORP -52.17% and AU -15.41%, offset by buys in VNOM, TDS, ORCL, and a massive +124.23% add to TLN.
Q: Why does Oaktree maintain such high turnover at 45.5%?
A: This reflects Howard Marks' opportunistic style, actively rotating into undervalued distress while exiting strength, across a broad 165-position portfolio to capture market cycles.
Q: What sectors dominate Oaktree's top holdings?
A: Energy (EXE, VNOM, TLN), commodities (TRMD, AU), industrials (GTX), and emerging tech/data (ORCL, CORZ) lead, focusing on cyclical recoveries.
Q: How can I track Howard Marks' portfolio like ValueSense does?
A: Use ValueSense's superinvestor tracker at https://valuesense.io/superinvestors/oaktree-capital for real-time 13F updates—note the 45-day filing lag means positions may evolve post-report.
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