Billionaire Howard Marks’ 5 Stock Picks with Huge Upside Potential

In this article, we will list the 5 stock picks of Billionaire Howard Marks with huge upside potential. Please visit Billionaire Howard Marks’ 10 Stock Picks with Huge Upside Potential if you would like to see the extended list and the methodology behind it.

Howard Marks of Oaktree Capital

5. Telephone and Data Systems, Inc. (NYSE:TDS)

Oaktree Capital Management’s Stake: $151 Million

Analyst Upside Potential: 58%

Telephone and Data Systems, Inc. (NYSE:TDS) first appeared in the 13F portfolio of Oaktree Capital Management in the third quarter of 2025. This position comprised close to 3.7 million shares. Filings for the fourth quarter of 2025 show that the fund has made no changes to this stake. The firm operates as a telecommunications company, providing communications services to residential, commercial, and wholesale customers in the United States. It operates through two segments: TDS Telecom and Array. It offers internet connections and all-home Wi-Fi services, fiber internet, security, and support services.

Elite investors have been rewarding Telephone and Data Systems, Inc. (NYSE:TDS) for the successful $4.4 billion sale of UScellular wireless operations. The proceeds are being used to lower net debt to below 3.0x EBITDA, dramatically improving the company’s credit profile. TDS distributed a massive $23 per share special dividend following the T-Mobile deal and another $10.25 in early February. This capital return strategy has made TDS a favorite for value-oriented hedge funds. The firm is also transforming into an infrastructure powerhouse. It retains 4,400 towers and recently signed a 15-year master lease agreement with T-Mobile. TDS is pivoting to fiber-to-the-home as well, targeting 2.1 million homes by 2028.