The latest 13F filing from Oaktree Capital Management LP (Howard Marks) provides a clear look into how one of the world’s great credit investors positions his equity book. While Marks is best known for distressed debt, high-yield bonds, and cycle analysis, Oaktree’s equity holdings reveal a consistent pattern: deep-value cyclicals, energy names with strong free cash flow, and special-situation equities with asymmetric payoff potential.
Below is a breakdown of Oaktree’s most important top holdings — and what they signal about Marks’ strategy.
1. TORM PLC (TRMD): 40,581,120 shares — $834.6M position
TORM is Oaktree’s largest disclosed holding, and its size underscores Marks’ conviction in the tanker cycle. With exceptionally strong cash generation, disciplined capital returns, and ton-mile demand driven by shifting global trade flows, TRMD gives Oaktree leveraged exposure to a multiyear supply/demand imbalance in the product tanker market.
For a value-driven investor, this is a textbook high-FCF, low-valuation opportunity.
2. Expand Energy Corp (CHK): 5,062,363 shares — $537.8M position
Energy remains a foundational pillar of Oaktree’s portfolio. CHK offers a blend of scale, disciplined capex, and natural gas leverage — a commodity Marks has repeatedly called structurally misunderstood. Despite minimal activity this quarter, the position size signals durable long-term confidence.
This is consistent with Oaktree’s preference for cash-rich cyclicals trading below intrinsic value.
3. Garrett Motion (GTX): 31,894,816 shares — $434.4M position
GTX is one of Oaktree’s classic special situations. Having emerged from restructuring several years ago, the company continues to reduce leverage and grow cash flow. Oaktree trimmed ~5M shares this quarter, but the holding remains a top-three position.
This investment reflects Marks’ long-standing belief in post-distress value creation when capital discipline improves.
4. AngloGold Ashanti (AU): 4,185,261 shares — $294.3M position
Gold miners remain cyclical and overlooked, making AU a natural fit for Oaktree’s framework. With improving margins, cleaner balance sheets, and global production optionality, AU provides asymmetric upside in an inflationary or risk-off environment.
The modest reduction this quarter aligns with Marks’ disciplined position management.
5. Viper Energy (VNOM): 6,285,062 shares — $240.2M position
VNOM is another high-cash-yield energy vehicle in Oaktree’s top ranks. With mineral rights exposure in the Permian Basin, Viper generates predictable royalty cash flows without the capex burden typical of E&Ps.
The 6.3M-share increase this quarter signals growing conviction and highlights energy as one of Oaktree’s strongest thematic bets.
Big Picture Takeaways
1. Oaktree continues to lean heavily into deep-value cyclicals.
Tankers, energy producers, and commodity-linked businesses dominate the top of the portfolio — all areas with significant cash flow yield, depressed valuations, and cyclical upside.
2. Marks remains consistent with his philosophy: embrace dislocation.
From restructuring plays like GTX to underfollowed foreign cyclicals, Oaktree’s holdings show a clear preference for situations where pessimism is already priced in.
3. Energy is the firm’s highest-conviction theme.
Multiple top holdings — TRMD, CHK, VNOM, STKL, and CORZ — reflect a belief that the market still underestimates the durability of cash generation across the sector.
4. Position changes reveal a blend of patience and opportunism.
Oaktree trimmed stocks that rallied (GTX, AU, SPY put), while materially increasing VNOM and selected common stocks — consistent with Marks’ mantra of controlled aggression.
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