Hotchkis & Wiley Funds, an investment management company, released its “Hotchkis & Wiley Mid-Cap Value Fund” third quarter 2024 investor letter. A copy of the same can be downloaded here. In the third quarter of 2024, the Russell Midcap Index produced a strong +9.2% return. Over the course of the quarter, the Russell Midcap Value Index beat the Russell Midcap Growth Index by +10.1% vs +6.5%. Macroeconomic factors significantly influenced market performance during the quarter. The fund returned 6.03% in the quarter, underperforming the 10.08% returns for the Russell Midcap Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Hotchkis & Wiley Mid-Cap Value Fund highlighted stocks like APA Corporation (NASDAQ:APA), in the third quarter 2024 investor letter. APA Corporation (NASDAQ:APA) engages in oil and natural exploration, development, and production. The one-month return of APA Corporation (NASDAQ:APA) was -2.89%, and its shares lost 41.35% of their value over the last 52 weeks. On December 24, 2024, APA Corporation (NASDAQ:APA) stock closed at $21.87 per share with a market capitalization of $8.091 billion.
Hotchkis & Wiley Mid-Cap Value Fund stated the following regarding APA Corporation (NASDAQ:APA) in its Q3 2024 investor letter:
“APA Corporation (NASDAQ:APA) is an independent E&P operating offshore in the North Sea, onshore in Egypt, and in the Midland and Delaware basins in the Permian. Recent exploration success in Suriname and Egypt has allowed APA to de-emphasize spending on lower returning assets in the North Sea. Given APA’s production sharing contracts and relatively modest corporate production decline rate, the company can maintain its dividend and fund its growth capex plans at $50 oil. Performance was pressured over the quarter after the company missed their Q1 ’24 EPS estimate and updated their FY24 guidance to include modestly higher capex and slightly lower production relative to expectations.”
Workers in hard hats and safety gear processing oil and gas in a US refinery.
APA Corporation (NASDAQ:APA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held APA Corporation (NASDAQ:APA) at the end of the third quarter which was 31 in the previous quarter. While we acknowledge the potential of APA Corporation (NASDAQ:APA) 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 APA Corporation (NASDAQ:APA) and shared the list of oversold midcap stocks to buy. APA Corporation (NASDAQ:APA) detracted from the performance of Ariel Focus Fund in Q3 2024 due to weak energy prices. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.