Billionaire Howard Marks’ AI Warning and 10 Non-AI Stock Picks

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

Oaktree Stake as of Q2: $196 Million

Telephone and Data Systems provides broadband and fiber internet through TDS Telecom. It also owns about 82% of Array Digital Infrastructure, a cell tower company. Oaktree raised the stake by 24% in the second quarter. Middle Coast Investing covered TDS’s move to fiber and the value in Array Digital in its second-quarter 2026 letter. Read the full letter here.

Telephone and Data Systems (NYSE:TDS) is down about 10% over the past year. TDS owns TDS Telecom, a fiber, cable, and copper internet provider, and about 80% of Array Digital Infrastructure, a cell tower company. In the second quarter, TDS Telecom’s revenue fell 6%, capital spending nearly doubled, and management cut its revenue forecast. Copper and cable customers leave faster than fiber customers sign up. The earnings beat came mostly from one-time spectrum sale gains, so investors ignored it.

TDS holds far more cash than debt to fund its fiber build. Fiber additions rose 47% in the second quarter, and rivals struggle to win customers from a finished fiber network. Array has fewer than one tenant per tower, so adding tenants is cheap. TDS dropped its Array offer in September and plans to restart buybacks. If fiber customers keep growing and Array fills more of its towers, both businesses can earn more for years.

#3 AngloGold Ashanti plc (NYSE:AU)

Oaktree Stake as of Q2: $257 Million

AngloGold Ashanti mines gold in Africa, Australia and the Americas. Oaktree trimmed the stake by 2% in the second quarter. AngloGold Ashanti also appears in our list of the 10 best gold mining stocks to buy as central banks buy bullion. See the full list here.

AngloGold Ashanti (NYSE:AU) mines gold in Africa and several other regions, and it is developing new projects in Nevada. The company pays out 50% of its annual free cash flow as dividends. The dividend rises and falls with gold prices, and the first-half dividend was about double the year before. The stock yields 5.31%.

Production should rise through the rest of the year. Management kept its full-year guidance and expects most of the output in the second half, mainly the fourth quarter. More ounces from the same mines should bring the cost per ounce down. The market charges a discount for African mines, and the Nevada projects would add US output over time.

The stock trades at 10.12 times forward earnings. That is 32.71% below the sector median of 15.04 and 15.91% below its own five-year average of 12.03. On EV/EBITDA it trades at 6.17 times against a sector median of 9.40. If gold holds up, AngloGold Ashanti has room to close that gap.

#2 Garrett Motion Inc. (NASDAQ:GTX)

Oaktree Stake as of Q2: $275 Million

Garrett Motion makes turbochargers for car and truck engines. Oaktree cut the stake by 48% in the second quarter. Harbor Mid Cap Value Fund named Garrett Motion among its top contributors in the second quarter. Click to read the full letter.

Garrett Motion (NASDAQ:GTX) makes turbochargers. A turbocharger is a small air pump that uses engine exhaust to push extra air into an engine, so the engine makes more power from less fuel. Its Q3 revenue increased about 3% but fell slightly short of Wall Street’s expectations, while earnings beat estimates. Growth in commercial vehicles, industrial applications, and aftermarket products helped offset weakness in the passenger vehicle market.

It trades at 10.53 times forward earnings, 31.09% below the sector median of 15.29. Forward EV/EBITDA, which compares total company value with operating earnings, is 7.57 against a sector median of 9.48.

#1 Expand Energy Corporation (NASDAQ:EXE)

Oaktree Stake as of Q2: $478 Million

Expand Energy is one of the largest natural gas producers in the United States. Oaktree held the same number of shares as in the first quarter. Sycamore Capital said in its second-quarter 2026 letter that a lower capex outlook and a leadership change weighed on the stock. Check the full letter here. Our latest coverage asks whether its growth story is at risk. Click to read our latest take.

New LNG plants are being built on the Gulf Coast. LNG is natural gas cooled into a liquid so ships can carry it to other countries. Expand’s Haynesville wells in Louisiana and East Texas sit close to these plants. Short trips to the buyer keep shipping costs low, and Haynesville gas sells at a price closer to the benchmark than Appalachian gas does.

The stock trades at 10.58 times forward earnings. The sector median is 12.50, and Expand’s own five-year average is 23.38. Analyst consensus rates the stock a Buy. If the LNG plants buy gas on schedule, Expand Energy (NASDAQ:EXE) has room to close that gap.

While we acknowledge the risk and potential of EXE as an investment, we believe certain AI infrastructure stocks offer far stronger long-term potential at a much more attractive entry point. If you are looking for an AI stock more promising than EXE that operates as a critical AI tollbooth and stands as the most important company in the world, check out our report about this must-own AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy

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