Energy Sector Pullback Provided Opportunity to Add ConocoPhillips (COP)

Oakmark Funds, advised by Harris Associates, released its “Oakmark Select Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned 12.4% in the second quarter compared to an 8.7% return for the S&P 500 Index. Year-to-date, the fund returned 24.7% compared to S&P 500 Index’s 16.9% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Oakmark Select Fund highlighted stocks like ConocoPhillips (NYSE:COP) in the second quarter 2023 investor letter. Headquartered in Houston, Texas, ConocoPhillips (NYSE:COP) engages in the exploration, production, transportation, and marketing of crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids. On July 10, 2023, ConocoPhillips (NYSE:COP) stock closed at $104.35 per share. One-month return of ConocoPhillips (NYSE:COP) was 0.91%, and its shares gained 25.04% of their value over the last 52 weeks. ConocoPhillips (NYSE:COP) has a market capitalization of $126.27 billion.

Oakmark Select Fund made the following comment about ConocoPhillips (NYSE:COP) in its second quarter 2023 investor letter:

“ConocoPhillips (NYSE:COP) is one of the largest and most efficient exploration and production companies in the country. The company has an extensive resource base of high-quality drilling inventory in the U.S. and various international locations as well as a growing liquified natural gas business. In our view, the depth and quality of ConocoPhillips’s inventory is a competitive differentiator that is not fully captured in today’s share price. Over the next 10 years, we believe ConocoPhillips will be able to return more than 100% of its current market cap to shareholders via dividends and share repurchases while growing its production at a mid-single-digit annual pace. We believe ConocoPhillips is also among the best managed companies in the oil and gas industry and we are impressed by its history of accretive capital allocation under CEO Ryan Lance. The stock has meaningfully underperformed the broader market year-to-date and is an attractive addition to our portfolio.”

Pixabay/Public Domain

ConocoPhillips (NYSE:COP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge fund portfolios held ConocoPhillips (NYSE:COP) at the end of first quarter 2023 which was 67 in the previous quarter.

We discussed ConocoPhillips (NYSE:COP) in another article and shared the list of best natural gas stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.