Ariel Investments, an investment management company, released its “Ariel Focus Fund” first-quarter investor letter. A copy of the same can be downloaded here. The economy started showing signs of cooling and credit conditions have started to tighten, which would help to reduce the inflation. In the first quarter, the fund was +0.35% up, compared to a +1.01% return for the Russell 1000 Value Index and a +7.50% return for the S&P 500 Index. 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 first quarter 2023 investor letter. Headquartered in Houston, Texas, APA Corporation (NASDAQ:APA) engages in oil and natural exploration, development, and production. On June 1, 2023, APA Corporation (NASDAQ:APA) stock closed at $32.04 per share. One-month return of APA Corporation (NASDAQ:APA) was -0.68%, and its shares lost 32.50% of their value over the last 52 weeks. APA Corporation (NASDAQ:APA) has a market capitalization of $9.888 billion.
Ariel Focus Fund made the following comment about APA Corporation (NASDAQ:APA) in its Q1 2023 investor letter:
“Alternatively, several positions weighed on performance. Oil and natural gas explorer, APA Corporation (NASDAQ:APA) traded materially lower alongside increased volatility across commodity markets at the end of the quarter. We view this price action to run counter to the company’s solid business fundamentals. APA delivered strong earnings results in the period highlighted by solid U.S. well performance and greater production volumes in the North Sea and Egypt. Management remains focused on higher-margin oil developments, driving safety and operational improvements, as well as tightly managing costs. APA is also prioritizing a reduction in carbon intensity. At today’s valuation, APA is currently trading at a 39% discount to our estimate of private market value.”
APA Corporation (NASDAQ:APA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held APA Corporation (NASDAQ:APA) at the end of first quarter 2023 which was 43 in the previous quarter.
We discussed APA Corporation (NASDAQ:APA) in another article and shared the list of biggest oil companies in Texas. In addition, please check out our hedge fund investor letters Q1 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.