Longleaf Partners Fund's Top Q2 Contributor: HF Sinclair Corporation (DINO)

Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned 5.33% in the second quarter, compared to the S&P 500’s 10.94% return and Russell 1000 Value’s 3.79% return. The firm’s stock price performance was volatile, but its confidence in future returns grew as the quarter progressed. Since markets have recovered and portfolio holdings remain high-quality and discounted, the firm believes maintaining its current cautious stance, as reflected in the recent strong results during turbulent times, is prudent, despite not fully matching recent market highs. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its second quarter 2025 investor letter, Longleaf Partners Fund highlighted stocks such as HF Sinclair Corporation (NYSE:DINO). HF Sinclair Corporation (NYSE:DINO) is a US-based independent energy company.  The one-month return of HF Sinclair Corporation (NYSE:DINO) was 9.98%, and its shares lost 8.15% of their value over the last 52 weeks. On July 23, 2025, HF Sinclair Corporation (NYSE:DINO) stock closed at $45.74 per share, with a market capitalization of $8.618 billion.

Longleaf Partners Fund stated the following regarding HF Sinclair Corporation (NYSE:DINO) in its second quarter 2025 investor letter:

"HF Sinclair Corporation (NYSE:DINO) – Energy infrastructure company HF Sinclair was a top contributor for the quarter. One of the primary drivers this quarter was the recent tension in the Middle East helping all things fossil fuels. More normalized refining spreads began to come into view, and HF Sinclair continued to grow its non-refining assets (which are over half of our appraisal). The company has also seen an unusually large and welcome amount of insider buying over the last year."

HF Sinclair Corporation (NYSE:DINO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held HF Sinclair Corporation (NYSE:DINO) at the end of the first quarter, which was 41 in the previous quarter. While we acknowledge the potential of HF Sinclair Corporation (NYSE:DINO) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered HF Sinclair Corporation (NYSE:DINO) and shared the list of best marketing stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 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.