Yachtman Asset Management released its Q1 2026 investor letter for its AMG “Yacktman Focused Fund.” A copy of the letter is available to download here. The Fund returned 10.37% during the first quarter, outperforming both the Russell 1000® Value Index and the S&P 500 Index, which returned 2.10% and -4.33%, respectively. US markets continue to record new highs, with the S&P 500® seeing compound returns of around twenty percent between 2023 and 2025. The letter noted that there is no sign of a slowdown in the US market, despite major geopolitical developments. The Fund remains disciplined, investing in companies and building a portfolio of strong risk-adjusted returns throughout the market cycle, emphasizing a long-term strategy to achieve differentiated returns. Also, check out the Fund’s top five holdings to learn your best picks in 2026.
In its Q1 2026 investor letter, Yacktman Focused Fund highlighted ConocoPhillips (NYSE:COP). ConocoPhillips (NYSE:COP) is a US-based energy company that produces, transports and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG) and natural gas liquids. On May 22, 2026, ConocoPhillips (NYSE:COP) closed at $120.46 per share. ConocoPhillips (NYSE:COP)’s monthly performance was -1.00% and its stock gained 41.40% in the last 52 weeks. ConocoPhillips (NYSE:COP) has a market capitalization of $146.76 billion.
Yacktman Focused Fund stated the following regarding ConocoPhillips (NYSE:COP) in its Q1 2026 investor letter:
“Portfolio energy companies were major contributors to the quarter’s performance: Canadian Natural Resources Limited (CNQ), ConocoPhillips (NYSE:COP), Diamondback Energy, and EOG Resources, Inc. All benefited from oil price shocks associated with the conflict in the Middle East. We initially invested in CNQ in 2021, when valuations of energy companies had been affected by the COVID-19 crisis. Environmental, social and governance (ESG) initiatives also influenced market sentiment about the sector. In 2022 we added the other energy names at a time when the market capitalization of the entire sector was a fraction of the total market. “These energy investments were designed in part to serve as a natural hedge against geopolitical risks should they arise.”
ConocoPhillips (NYSE:COP) isn’t on our list of the 40 most popular stocks among hedge funds heading into 2026. According to our database, 65 hedge fund portfolios held ConocoPhillips (NYSE:COP) at the end of the fourth quarter, up from 72 in the prior quarter. While we recognize the potential of ConocoPhillips (NYSE:COP) as an investment, we believe certain AI stocks offer greater growth 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.