Oaktree Capital Management Lp

Oaktree’s biggest adds say more than any macro commentary. They are leaning into state-linked hydrocarbons, infrastructure-like telco, and “picks-and-shovels” tech around data and compute.

The notable conviction moves:

• Petrobras (PBR) arrives as a new $126.4M position at 2.24% of the book. That is a straight bet that Brazilian upstream cash flows – and a politically volatile dividend stream – are mispriced, and worth rotating into even late in the energy cycle.
• YPF adds another $40.9M of Argentina exposure to the energy sleeve. Pairing YPF with Petrobras and existing Expand Energy builds a deliberately levered play on emerging-market barrels and FX, not just WTI.
• Credo Technology (CRDO) is a new $50.6M stake in a high-growth semiconductor “plumbing” name. That’s Oaktree choosing bandwidth and connectivity over crowded AI front-end leaders.
• Telephone and Data Systems (TDS) is quietly increased by +16.4%, now a $180.7M, 3.21% holding. This is infrastructure telco at a discount, with Oaktree treating it like a long-duration, optionality-rich asset.
• Core Scientific (CORZ) is boosted by +12.6% to $139.9M, 2.48% of the portfolio. Classified as finance here, it is effectively a levered bet on compute and crypto-cycle volatility that still trades below Oaktree’s perceived upside.
• On the smaller end, the fund initiates Simply Good Foods (SMPL), NRG Energy (NRG), Embraer (EMBJ), Indivior Pharmaceuticals (ASRT), and even a sliver of PDD. These are option-like entries: small dollars, but very specific exposures to consumer staples resilience, power markets, aerospace upcycle, specialty pharma, and Chinese e-commerce.

The sell-side of the book is dominated by aggressive profit-taking in trades that have already worked. Oaktree is not exiting its best ideas; it is right-sizing them and liberating capital for new, riskier energy and tech bets.

Key funding sources:

• Viper Energy (VNOM) is slashed by -39.7%, freeing up $117.2M while still leaving a sizable 3.16% position. This looks like a rotation within energy from U.S. royalty barrels to higher-beta LatAm upstream.
• TORM (TRMD), still the largest position at 11.98%, is trimmed -9.8% after a roughly 412.5% gain versus cost. Garrett Motion (GTX) sees a -14.6% cut after a gain above 300%. Both moves scream disciplined profit harvest in highly cyclical, operationally geared names.
• AngloGold (AU) and Barrick (B) are reduced by -16.2% and -11.8% respectively, even though each shows roughly 100–400% gains vs. cost. Copper play Freeport-McMoRan (FCX) is pared as well. Oaktree is taking some chips off the gold-and-copper table as the reflation narrative matures.
• In Industrials, CEMEX (CX) and Ecovyst (ECVT) are cut by -51.9% and -43.7%. That is a clear de-emphasis of building-materials and specialty-chemicals beta in favor of more idiosyncratic, less GDP-linear growth.
• Nokia (NOK) is chopped by -40.3%, a notable retreat from low-growth telco equipment even as Oaktree leans harder into more complex telecom and data-infrastructure situations elsewhere.

Despite only modest headline sector shifts, the internal rotation is sharp. Energy climbs from 20.61% to 23.04%, but the mix pivots from U.S. royalty and cleaner structures toward politically messy, high-cash-flow LatAm state champions.

Consumer Discretionary nudges down from 26.55% to 24.61% after trims in TORM and Garrett, but those remain massive anchors. This is not a de-risking; it’s a mild rebalancing after outsized performance. Similarly, Basic Materials dips from 13.8% to 12.18% as gold and copper are skimmed.

Industrials see the real downgrade, dropping from 3.51% to 2.78% after heavy cuts to CEMEX and Ecovyst. That underscores Oaktree’s view that easy cyclical-operating-leverage money has already been made in traditional industrial reflation.

Telecom edges up (9.25% to 9.98%) through TDS, with Latin cable and infrastructure holdings maintained. Finance rises slightly (8.97% to 9.26%) via Core Scientific and stability in specialty lenders, while utilities inch higher on NRG. Technology is roughly flat in aggregate at 3.96%, but rotates under the hood from mature hardware (Nokia) to higher-growth semis (Credo) and a toehold in Chinese e-commerce (PDD).

Finally, Consumer Staples debuts at 0.4% with Simply Good Foods, and Health Care grows from 1.37% to 1.55% via Indivior and tweaks to Alvotech. That’s exactly the kind of low-correlation ballast you add when you’ve just pushed energy and crypto-exposed compute higher.

Taken together, these moves paint Oaktree as running a late-cycle, barbelled strategy: high-conviction, high-volatility real assets on one side, and a scattering of defensive or idiosyncratic growth on the other. The quarter’s 10.4% performance backdrop only reinforces that this is a book being managed from a position of strength, not repair.

On the risk-on end, expect more emphasis on global energy and shipping, with Petrobras, YPF, Expand Energy, and TORM acting as the main macro levers. Core Scientific and Credo add a second, more tech-centric risk axis tied to compute, crypto, and data traffic rather than broad equity indices.

On the stabilizer side, the introduction of Simply Good Foods, NRG, select utilities and REITs, plus sticky healthcare names like Bausch + Lomb and Indivior, gives Oaktree optionality if growth wobbles or rates stay higher for longer. Telecom infrastructure like TDS and Liberty Latin America sits somewhere in the middle: cash-flow assets with embedded optionality on industry consolidation and capital discipline.

The big tell is what they didn’t do: they kept top-10 concentration high and did not materially dilute their best winners. That implies Oaktree still believes we are in an environment where owning scarce assets with cash flow leverage – especially in energy and transport – will out-earn a simple index, even after a strong multi-year run.

If volatility returns, this portfolio is built to feel it – but also to exploit it. The dry powder liberated from industrials, gold, and legacy telco suggests they expect more interesting dislocations ahead in energy, infrastructure, and complex special situations than in plain-vanilla cyclicals.