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.
4. Expand Energy Corporation (NASDAQ:EXE)
Oaktree Capital Management’s Stake: $559 Million
Analyst Upside Potential: 65%
Expand Energy Corporation (NASDAQ:EXE) has been a long-term holding in the 13F portfolio of Oaktree Capital Management. The fund first disclosed a stake in the company in the first quarter of 2021. This position comprised just under 12 million shares. Oaktree started trimming this position in the first quarter of 2022, reducing it by 8%, 4%, 6%, and 11% in the coming four quarters. Filings for the fourth quarter of 2025 show that the fund owned just over 5 million shares in the company, the same as in the previous quarter. The firm operates as an independent natural gas production company in the United States. It engages in acquisition, exploration, and development of properties to produce oil, natural gas, and natural gas liquids.
READ MORE: 10 Best Stocks to Buy According to Billionaire Paul Tudor Jones.
Expand Energy Corporation (NASDAQ:EXE) has become a top-tier holding for hedge funds focused on the AI-Natural Gas convergence. The firm is currently ranked as the largest natural gas producer in North America, and the institutional narrative around it has shifted from a cyclical commodity play to a structural energy infrastructure play. The company delivered a staggering 506% year-over-year EPS growth in late 2025, reflecting significant operational leverage and the benefit of a tightening supply environment. Analysts at Wells Fargo note that supply deals and end-user delivery improvements are expected to drive a $500 million annual structural increase in EBITDA.
3. Core Scientific, Inc. (NASDAQ:CORZ)
Oaktree Capital Management’s Stake: $122 Million
Analyst Upside Potential: 76%
Core Scientific, Inc. (NASDAQ:CORZ) is a relatively recent addition to the 13F portfolio of Oaktree Capital Management. The fund first disclosed a stake in the company in the third quarter of 2025. This position comprised 6.4 million shares. The hedge fund then proceeded to add to this holding by more than 30% in the next few months. Filings for the fourth quarter of 2025 show that the fund owned over 8.3 million shares in the firm. Core provides infrastructure for high-density colocation services and digital asset mining in the United States. It offers space, power, cooling, facilities operations, security, and other services to third-party customers to support workloads for machine learning and artificial intelligence.
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Core Scientific, Inc. (NASDAQ:CORZ) was once primarily known as a Bitcoin miner. However, in recent months, the narrative around the company has shifted to high-performance computing and AI infrastructure. Hedge funds are piling into the stock to capture the revenue from a massive partnership with CoreWeave. The agreement has expanded to roughly 590 MW of HPC capacity, which is projected to generate $8.7 billion to $10 billion in revenue over the next 12 years. For funds like, this contract acts as a synthetic bond, a guaranteed cash flow stream from a high-quality AI customer that covers the cost of building the infrastructure.
2. Indivior Pharmaceuticals, Inc. (NASDAQ:INDV)
Oaktree Capital Management’s Stake: $255 Million
Analyst Upside Potential: 82%
Indivior Pharmaceuticals, Inc. (NASDAQ:INDV) presents an interesting case study into the investment philosophy at Oaktree Capital Management. The fund first disclosed a stake in the company in the first quarter of 2024. This position comprised over 3.3 million shares. The fund added to this holding in the coming quarters, growing it to 11 million shares by the end of the second quarter of 2025. Filings for the fourth quarter of 2025 show that the fund owned over 7 million shares in the company, down 97% compared to filings for the previous quarter. Indivior engages in the development, manufacture, and sale of buprenorphine-based prescription drugs.
Indivior Pharmaceuticals, Inc. (NASDAQ:INDV) recently completed official redomiciliation from the UK to the United States. Following the move, it was added to the S&P SmallCap 600 effective late 2025. Funds believe that as a US-domiciled company, the shares will finally be valued against US biotech peers which typically trade at higher multiples rather than lower-multiple European pharma stocks. These investors are betting on the continued dominance of SUBLOCADE, the long-acting injectable for opioid use disorder marketed by the firm. For the full year 2026, management has projected SUBLOCADE revenue between $905 million and $945 million.
1. Bausch Health Companies Inc. (NYSE:BHC)
Oaktree Capital Management’s Stake: $8.8 Million
Analyst Upside Potential: 138%
Bausch Health Companies Inc. (NYSE: BHC) has been a consistent feature in the 13F portfolio of Oaktree Capital Management since the third quarter of 2023. Back then, this position comprised 1.3 million shares. The fund has not made major additions or subtractions to this stake since then, Filings for the fourth quarter of 2025 show that the fund owned 1.27 million shares in the company. Bausch operates as a diversified specialty pharmaceutical and medical device company. It develops, manufactures, and markets products primarily in the therapeutic areas of gastroenterology, hepatology, neurology and dermatology.
READ MORE: 15 Best Stocks to Buy According to Billionaire Ray Dalio.
Bausch Health Companies Inc. (NYSE: BHC) is being rewarded for an aggressive de-leveraging strategy. Over the last few years, it has paid down more than $8 billion in debt through non-core asset divestitures and cash flow from operations. Despite legal headwinds, the company generated roughly $780 million in Free Cash Flow (FCF) over the trailing twelve months, providing the fuel needed to manage remaining debt load without extreme dilution. For 2026, management has provided a revenue range of $5.25 billion and $5.4 billion, suggesting stable organic growth. The aesthetics business, named Solta, continues to be a high-margin hidden gem within the portfolio, with recent launches like the Clear + Brilliant Touch laser in Canada keeping growth momentum alive.
While we acknowledge the potential of BHC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BHC and that has 100x upside potential, check out our report about the cheapest AI stock.
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