Soumya Eswaran
3 min read
In This Article:
Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Mid-Cap Value Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Hotchkis & Wiley Mid-Cap Value Fund returned -5.63% in the first quarter, underperforming the Russell Midcap Value Index’s -2.11% return. US mid-cap stocks surged post-Presidential elections due to potential benefits of deregulation, lower corporate taxes, and accelerated growth. However, Q1 2025 saw a decline due to tariffs, high inflation, and weak macroeconomic factors, causing the Russell Midcap Index to decline by -3.4% and the Russell Midcap Value Index by -2.1% vs. a decline of -7.1% for the Russell Midcap Growth Index. For more information on the fund’s best picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, Hotchkis & Wiley Mid-Cap Value Fund highlighted stocks such as Kosmos Energy Ltd. (NYSE:KOS). Incorporated in 2003, Kosmos Energy Ltd. (NYSE:KOS) is a deep-water exploration and production company. The one-month return of Kosmos Energy Ltd. (NYSE:KOS) was -2.78%, and its shares lost 72.09% of their value over the last 52 weeks. On May 16, 2025, Kosmos Energy Ltd. (NYSE:KOS) stock closed at $1.75 per share with a market capitalization of $788.715 million.
Hotchkis & Wiley Mid-Cap Value Fund stated the following regarding Kosmos Energy Ltd. (NYSE:KOS) in its Q1 2025 investor letter:
"Kosmos Energy Ltd. (NYSE:KOS) is an independent exploration and production company focused offshore. In addition to its existing production, KOS has liquified natural gas (LNG) assets that are set to begin production in 2024 and a platform to acquire and operate additional offshore resources. Shares fell over the quarter after Organization of the Petroleum Exporting Countries (OPEC+) delegates announced that the group would move forward with plans to restart previously halted oil production. We believe these short-term issues are significantly outweighed by the long-term value of the company’s existing production, which the current stock price does not fully reflect."
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 30 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 fourth quarter compared to 27 in the third 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 undervalued AI stock set for massive gains.
