Howard Marks Q1 2026 Portfolio — QQQ Initiated, SMH & SPY Fully Exited

Howard Marks' Oaktree Capital Management revealed in its Q1 2026 13F filing that it initiated new positions in QQQ ($329M) and XOP ($182M) while fully liquidating SMH ($312M), SPY ($263M), and INDV ($255M). Total AUM stands at approximately $3.9B across 20 holdings.

Top 5 Holdings — Q1 2026

• TRMD: $675M (14.4%)
• EXE: $575M (12.2%)
• QQQ: $329M (7.0%)
• AU: $314M (6.7%)
• GTX: $265M (5.6%)

Q1 2026 Key Portfolio Moves

The most striking change this quarter is the large-scale rotation among major ETF positions. Oaktree fully exited both the semiconductor ETF SMH ($312M) and the S&P 500 tracker SPY ($263M), while simultaneously initiating a $329M position in the Nasdaq 100 ETF QQQ. This signals a deliberate shift to maintain broad market exposure while reducing semiconductor sector concentration and realigning toward technology growth equities. The new positions in energy ETF XOP ($182M) alongside PBR ($126M) and YPF ($41M) mark a clear and deliberate increase in energy resource exposure.

• QQQ: Initiated at $329M (7.0%) — Tech exposure repositioned to Nasdaq 100 following SMH and SPY liquidation
• SMH: Fully sold $312M → 0 — Complete removal of direct semiconductor sector exposure; signals sector risk reduction
• SPY: Fully sold $263M → 0 — Broad passive index position exited; shift toward selective active strategy
• XOP: Initiated at $182M (3.9%) — Energy sector concentration reinforced alongside PBR and YPF
• EXE: Increased +3% → $575M — Retains No. 2 portfolio rank; signals heightened conviction in core holding
• ALVOTECH SA: Reduced -82% → $336K — Effectively liquidated; biopharmaceutical position substantially unwound

TRMD remains the top holding at $675M (14.4%) of the portfolio. EXE was increased by an additional 3 percentage points to $575M (12.2%), claiming the No. 2 spot, while gold miner AU ($314M, 6.7%) entered the top tier — confirming a precious metals hedge position. On the other hand, ALVOTECH SA was slashed by 82% and is effectively being wound down, with TLN (-50%) and CX (-52%) also cut by more than half.

Dual-Track Energy & Tech Strategy: Reading the Defensive Repositioning

Oaktree's portfolio overhaul this quarter reflects two simultaneous strategic thrusts. The initiation of QQQ signals selective optimism on technology growth, while the concentration in XOP, PBR, and YPF suggests a value-driven energy accumulation strategy during a period of oil price weakness. Exiting individual growth names such as ORACLE and FTAI appears aimed at reducing single-stock risk in favor of ETF-driven liquidity. Paired with the AU position, the portfolio also carries a clear inflation and dollar-weakness hedge — making Marks' 2026 playbook best summarized as a 'concentration plus hedging' framework.