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 Kosmos Energy Ltd. (NYSE:KOS), in the third quarter 2024 investor letter. Kosmos Energy Ltd. (NYSE:KOS) engages in the exploration, development, and production of oil and gas. The one-month return of Kosmos Energy Ltd. (NYSE:KOS) was -19.06%, and its shares lost 55.97% of their value over the last 52 weeks. On December 24, 2024, Kosmos Energy Ltd. (NYSE:KOS) stock closed at $3.10 per share with a market capitalization of $1.463 billion.
Hotchkis & Wiley Mid-Cap Value Fund stated the following regarding Kosmos Energy Ltd. (NYSE:KOS) in its Q3 2024 investor letter:
“Kosmos Energy Ltd. (NYSE:KOS) is an independent exploration and production company “E&P” focused offshore in the US Gulf of Mexico, Ghana, and Equatorial Guinea. Shares were pressured over the period as oil prices continued to decline, driven by worries surrounding OPEC+ barrels returning to the market, coupled with slowing demand. We believe the company is competitively advantaged due to the expertise required to explore, discover, and operate assets offshore. We also believe that the valuation of the stock does not fully reflect the value of the Company’s existing production. Additionally, the company also has liquefied natural gas assets, an exploration portfolio, and a platform to acquire and operate additional offshore resources.”
A drilling platform in the middle of the ocean, showing the oil and gas exploration process.
Kosmos Energy Ltd. (NYSE:KOS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Kosmos Energy Ltd. (NYSE:KOS) at the end of the third quarter which was 25 in the previous quarter. While we acknowledge the potential of Kosmos Energy Ltd. (NYSE:KOS) 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 Kosmos Energy Ltd. (NYSE:KOS) and shared the list of oversold energy stocks to buy. 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.