Madison Funds, managed by Madison Investment Management, released its “Madison Dividend Income Fund” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned +13.9%, outperforming the S&P 500 Index, Russell 1000 Value Index, and Lipper Equity Income peer group, which returned +7.6%, +12.4%, and +12.4%, respectively. For the full year 2022, the fund returned –5.4% compared to -18.1% return for the S&P 500 Index, -7.6% for the Russell 1000 Value Index, and -5.6% for the Lipper Equity Income peer group. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Madison Funds highlighted stocks like Chevron Corporation (NYSE:CVX) in the fourth quarter 2022 investor letter. Headquartered in San Ramon, California, Chevron Corporation (NYSE:CVX) is an energy company. On January 12, 2023, Chevron Corporation (NYSE:CVX) stock closed at $177.08 per share. One-month return of Chevron Corporation (NYSE:CVX) was 3.53%, and its shares gained 39.65% of their value over the last 52 weeks. Chevron Corporation (NYSE:CVX) has a market capitalization of $342.409 billion.
Madison Funds made the following comment about Chevron Corporation (NYSE:CVX) in its fourth quarter 2022 investor letter:
“This quarter we are highlighting Chevron Corporation (NYSE:CVX) as a relative yield example in the Energy sector. CVX is a leading integrated oil company with exploration, production, and refining operations. It is the second largest oil company in the United States with more than 70% of production volumes from oil and liquid-linked natural gas. We believe it has a sustainable competitive advantage due to its scale and low-cost position. It has a large acreage position in the Permian Basin, which is a high-quality oil field. CVX was an early mover in the Permian and did not overpay to enter the oilfield; 75% of its position has a no or low royalty rate, which gives it a cost advantage over competitors.
Our thesis is that free cash flow growth per share is expected to accelerate due to disciplined capital spending, rising Permian production volumes, and stock repurchases. The company has also made important investments in low-carbon areas like greenhouse gas reduction, carbon capture, hydrogen, and renewable fuels which we believe will pay off later in the decade as the world transitions more to renewable energy sources…” (Click here to read the full text)
Chevron Corporation (NYSE:CVX) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held Chevron Corporation (NYSE:CVX) at the end of the third quarter, and 59 in the previous quarter.
We discussed Chevron Corporation (NYSE:CVX) in another article and shared the biggest natural resources companies in the world. In addition, please check out our hedge fund investor letters Q4 2022 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.
