Oaktree's TDS Position in Q2 2026: The Numbers

Oaktree Capital Management increased its stake in Telephone and Data Systems (TDS) by 23% to $195.5 million in the second quarter of 2026, according to the firm's latest 13F filing with the SEC. The position now accounts for 3.7% of Oaktree's total $5.3 billion reported book across 138 holdings. For a firm managing that scale of capital, a position worth under 4% of the portfolio qualifies as a conviction bet, not a core holding.

!TDS in Oaktree's Top 10 Holdings. TDS ranks sixth by weight in Oaktree's disclosed portfolio as of June 30, 2026.

What is Telephone and Data Systems?

Telephone and Data Systems is a diversified telecom and technology services company. The Chicago-based outfit operates through a portfolio of subsidiaries: it owns a controlling stake in United States Cellular Corporation, one of the smaller nationwide wireless carriers; it runs a cable television and internet provider in select markets; and it holds a majority position in Anixter International, a technology distributor. The company also invests in emerging technologies and ventures.

The business model depends on stable, recurring revenue from wireless subscribers and broadband customers, mixed with higher-margin sales through its wholesale distribution arm. It is not a flashy growth story. It is a decidedly unglamorous portfolio of telecom and tech infrastructure assets, the kind of position a value investor might accumulate quietly over time.

How large is this now in Oaktree's holdings?

At $195.5 million, TDS represents 3.7% of Oaktree's reported $5.3 billion book, placing it sixth among the firm's 138 positions. To put that in context, the top 10 holdings alone make up 47.4% of the portfolio. TDS sits comfortably above the median position but well below Oaktree's crown jewels like TORM PLC at 9.9% or EXE at 9.0%.

The 23% increase in the quarter signals Oaktree was willing to add to TDS at prevailing prices. This was not a small trim or a rebalance. The firm deployed real capital into this name while trimming other positions heavily, including a 48% cut to GTX and a 47% reduction in CORZ. That kind of reallocation tells you Oaktree preferred TDS to its other options in the second quarter.

Why would Oaktree build TDS now?

The filing shows what was bought, not the reasoning. Howard Marks and his team do not comment on individual stock picks in 13F disclosures. What we know is the trade itself: a nearly $37 million addition to a position that was already held, made public on August 14, 2026, covering activity through June 30.

For investors watching Oaktree's moves, the fact of the increase is the only datapoint available. The company fits Oaktree's historical range: undervalued, cash-generative, not in favor with momentum traders, and thus potentially mispriced. TDS trades at the intersection of old-line telecom (typically assigned a low multiple) and technology distribution (typically higher), which can create a valuation gap if one part outgrows expectations.

The bottom line

Oaktree moved TDS from a minor position to the sixth-largest in its portfolio during Q2, adding $37 million in a single quarter. For a disciplined value shop, that kind of concentrated buying is worth noticing.

You can check Oaktree's complete holdings and recent filings on the Oaktree Capital Management guru page.

This is educational information, not financial advice.