Oaktree Knows Distressed Debt. Its Garrett Motion Sale Tells You Something.
Key Points
Sold 14,800,000 shares of Garrett Motion; estimated trade size of $235.64 million based on average Q4 price.
Quarter-end position value decreased by $136.44 million, reflecting both sales and share price movements.
The trade represented a 3.35% change in 13F reportable AUM.
After the sale, Oaktree still held 17,094,816 shares, valued at $297.96 million at quarter-end.
Garrett Motion now accounts for 4.24% of fund AUM, placing it as Oaktree’s fifth-largest holding.
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On February 17, 2026, Oaktree Capital Management reported selling 14,800,000 shares of Garrett Motion (NASDAQ:GTX), an estimated $235.64 million trade based on quarterly average pricing.
Garrett Motion designs turbochargers and electric-boosting systems for global automotive manufacturers and aftermarket distributors.
- Oaktree Capital Management sold 14,800,000 shares of Garrett Motion at an estimated price of $235.64 million based on average quarterly pricing.
- The quarter-end position value decreased by around $136.4 million, reflecting both sales and share price movements
- The transaction represented roughly a 3.35% change in 13F reportable AUM
- Following the transaction, Oaktree still held 17,094,816 shares valued at $297.96 million
- Garrett Motion now accounts for 4.24% of fund AUM, placing it as Oaktree’s fifth-largest holding.
What happened
According to an SEC filing dated February 17, 2026, Oaktree Capital Management reduced its Garrett Motion holdings by 14,800,000 shares during the fourth quarter of 2025. The estimated transaction value is $235.64 million, calculated using the average unadjusted closing price in the quarter. The quarter-end position value decreased by $136.44 million, which incorporates both sales and market price changes.
What else to know
- This was a sizable sale, but Garrett Motion still representing 4.25% of Oaktree’s 13F reportable AUM after the trade, its fifth largest holding.
- Top holdings after the filing:
- NASDAQ:EXE: $558.68 million (8.1% of AUM)
- NASDAQ:TRMD: $527.29 million (7.5% of AUM)
- NYSE:AU: $328.16 million (4.7% of AUM)
- NASDAQ:SMH: $311.51 million (4.4% of AUM)
- NASDAQ:GTX: $297.96 million (4.25% of AUM)
- As of March 19, 2026, shares of Garrett Motion were priced at $17.40, up 89.5% over the past year, which bested the S&P 500 by about 75%.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $3.54 billion |
| Net Income (TTM) | $310.00 million |
| Dividend Yield | 1.84% |
| Price (as of market close 3/19/26) | $17.40 |
Company Snapshot
- GTX designs and manufactures turbochargers and electric-boosting technologies for light and commercial vehicles, with additional offerings in automotive software solutions.
- The company generates revenue through sales to original equipment manufacturers (OEMs) and aftermarket distributors worldwide, leveraging a technology-driven product portfolio.
- Garrett Motion serves global automotive Original Equipment Manufacturers (OEMs) and aftermarket customers, focusing on light-vehicle, commercial-vehicle, and performance segments.
Garrett Motion is a leading supplier of advanced turbocharging and electric-boosting technologies, serving both light- and commercial-vehicle markets. The company leverages its engineering expertise and global manufacturing footprint to deliver high-performance solutions to automotive OEMs and aftermarket clients. Its focus on innovation and diversified customer base underpins its competitive position in the automotive parts industry.
What this transaction means for investors
Oaktree Capital Management, led by the famous Howard Marks, cut nearly half its Garrett Motion position in Q4, but this isn't a fund walking away. They still hold $298 million worth of shares — enough to rank it their fifth-largest position, down from third the prior quarter.
Oaktree is one of the most respected distressed debt firms in the world. Their playbook is to come in as a creditor when companies hit trouble, convert that debt to equity, and exit as the business recovers. That's exactly what happened with Garrett, which emerged from bankruptcy in 2020 with Oaktree as a major stakeholder. At that point, it was a debt-recovery play, not a stock pick — the kind of entry most retail investors never get access to.
The fact that they've taken significant money off the table while keeping a $298 million position suggests they've recouped a meaningful chunk of the original investment — and still see enough upside to stay. For Fools, that's the more interesting signal: the smart money got in differently than you did, but it isn't done yet.Oaktree cut nearly half its Garrett Motion position in Q4, but this isn't a fund walking away. They still hold $298 million worth of shares — and who Oaktree is matters more than the headline number here.
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Seena Hassouna has positions in Garrett Motion. The Motley Fool recommends Garrett Motion and Viper Energy. The Motley Fool has a disclosure policy.
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