Hotchkis & Wiley Funds, an investment management company, released its “Hotchkis & Wiley Large Disciplined Value Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index was up +22.1% since the start of the year and returned +5.9% in the third quarter. The latest update on the Consumer Price Index provided additional proof that the rate of inflation is declining sustainably. In the third quarter of 2024, the Hotchkis & Wiley Large Cap Disciplined Value fund underperformed the Russell 1000 Value index (gross and net of management fees). In addition, please check the fund’s top five holdings to know its best picks in 2024.
Hotchkis & Wiley Large Disciplined Value Fund highlighted stocks like Ovintiv Inc. (NYSE:OVV) in the third quarter 2024 investor letter. Based in Denver, Colorado, Ovintiv Inc. (NYSE:OVV) is an oil and gas exploration and production company. The one-month return of Ovintiv Inc. (NYSE:OVV) was -14.81%, and its shares lost 11.91% of their value over the last 52 weeks. On December 26, 2024, Ovintiv Inc. (NYSE:OVV) stock closed at $38.69 per share with a market capitalization of $10.072 billion.
Hotchkis & Wiley Large Disciplined Value Fund stated the following regarding Ovintiv Inc. (NYSE:OVV) in its Q3 2024 investor letter:
“Ovintiv Inc. (NYSE:OVV) is an independent E&P operating primarily in the onshore US and Canada. The company was also negatively impacted by the downturn in energy prices during the quarter. Ovintiv provides us with exposure to an energy market that was underearning versus normal levels of profitability and currently is generating significant FCF in what could be a perennially undersupplied market. Ovintiv also has a leading position in multiple unconventional resource plays in the US which have a favorable position on the global cost curve, in addition to returning significant capital to shareholders.”
A drilling rig fueled by the energy and expertise of the oil & gas exploration and production company.
Ovintiv Inc. (NYSE:OVV) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Ovintiv Inc. (NYSE:OVV) at the end of the third quarter which was 44 in the previous quarter. Ovintiv Inc. (NYSE:OVV) reported net earnings of $507 million or $1.92 per share and cash flow of $978 million in the third quarter. While we acknowledge the potential of Ovintiv Inc. (NYSE:OVV) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Ovintiv Inc. (NYSE:OVV) and shared the list of most undervalued natural gas stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q3 2024 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.