Oakmark Funds, advised by Harris Associates, released its Q4 2025 “Oakmark Select Fund” investor letter. Oakmark Select Fund is a non-diversified fund that aims to generate capital appreciation by investing in large and mid-cap US companies. A copy of the letter can be downloaded here. For the quarter, the fund (investor class) outperformed the S&P 500 index, returning 8.42% versus the index’s 2.66%. Communication services and finance were the main contributors at the sector level, while the industrial sector detracted from profitability. Additionally, you can check out the Fund’s top five holdings to determine your best picks for 2025.
In its Q4 2025 investor letter, Oakmark Select Fund highlighted stocks like Targa Resources Corp. (NYSE:TRGP). Targa Resources Corp. (NYSE:TRGP) owns and develops a portfolio of complementary domestic infrastructure assets. Targa Resources Corp. (NYSE:TRGP)’s monthly performance was -1.15% and its shares lost 12.27% of its value in the last 52 weeks. On January 13, 2026, Targa Resources Corp. (NYSE:TRGP) stock closed at $180.28 per share, with a market capitalization of $38.795 million.
Oakmark Select Fund stated the following regarding Targa Resources Corp. (NYSE:TRGP) in its Q4 2025 investor letter:
“Targa Resources Corp. (NYSE:TRGP) is a leading midstream natural gas and natural gas liquids (NGL) company. Targa is part of a group that controls 90% of the fractionation capacity at the world’s largest NGL hub, known as Mont Belvieu. Thanks to the region’s unique topography and its proximity to the Gulf Coast, Targa benefits from significant cost advantages and significant barriers to entry. We like that Targa generates about 90% of its profits through multi-year, fee-based agreements with its customer base, which provides protection against oversupply or recontracting. Uncertainty around Permian oil production growth has weighed on stock prices recently. However, in our view, Targa remains well positioned for growth, even if the Permian slows dramatically. “We were happy to buy shares at a discount to peers based on normalized earnings power and our estimate of intrinsic value.”
Targa Resources Corp. (NYSE:TRGP) isn’t on our list of the 30 most popular stocks among hedge funds. According to our database, 50 hedge fund portfolios owned Targa Resources Corp. (NYSE:TRGP) at the end of the third quarter, up from 48 in the previous quarter. While we recognize the potential of Targa Resources Corp. (NYSE:TRGP) as an investment, we believe certain IA stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.