Telephone and Data Systems Inc. (TDS): Billionaire Howard Marks Continues to Be Bullish

We just covered the Billionaire Howard Marks’ 10 Stock Picks with Huge Upside Potential and Telephone and Data Systems, Inc. (NYSE:TDS) ranks 5th on this list.

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.

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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.

While we acknowledge the risk and potential of TDS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TDS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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