Ariel Investments, an investment management company, released its “Ariel Focus Fund” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund fell -5.87 % compared to a -3.16% and -3.27% decline for the Russell 1000 Value Index and the S&P 500 Index, respectively. Global markets fell in the third quarter. In this context, the government bond yield spiked, which put pressure on the equities and led the high values “magnificent seven” to lose their shine. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Ariel Focus Fund highlighted stocks like APA Corporation (NASDAQ:APA) in the third quarter 2023 investor letter. Headquartered in Houston, Texas, APA Corporation (NASDAQ:APA) engages in oil and natural exploration, development, and production. On December 8, 2023, APA Corporation (NASDAQ:APA) stock closed at $34.47 per share. One-month return of APA Corporation (NASDAQ:APA) was -5.95%, and its shares lost 21.50% of their value over the last 52 weeks. APA Corporation (NASDAQ:APA) has a market capitalization of $10.573 billion.
Ariel Focus Fund made the following comment about APA Corporation (NASDAQ:APA) in its Q3 2023 investor letter:
“Oil and natural gas explorer, APA Corporation (NASDAQ:APA), traded higher over the quarter. APA continues to deliver strong earnings results highlighted by solid production volumes as well as tighter expense controls. The output in the Permian Basin remains solid. APA also has overcome its operational challenges in Egypt and expects to hit its 2H23 oil production guidance in the region. Management also expressed confidence in the Suriname development and is working with TotalEnergies to put together a plan for the oil hub. Looking ahead, APA remains focused on higher-margin oil developments, driving safety and operational improvements, and prioritizing a reduction in carbon intensity. Meanwhile, capital returns through Q2 exceeded APA’s minimum 60% return of free cash flow to shareholders through dividends and repurchases, with the potential for more buybacks in the second half of the year. At current valuation levels, APA is trading at a 30% discount to our private market value estimate.”
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APA Corporation (NASDAQ:APA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held APA Corporation (NASDAQ:APA) at the end of third quarter which was 31 in the previous quarter.
We discussed APA Corporation (NASDAQ:APA) in another article and shared the list of top natural gas-producing companies in the US and their current dynamics. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
