Multiple Headwinds Hit ConocoPhillips (COP) in Q2

Diamond Hill Capital, an investment management company, released its “Large Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. After a significant decline in April following President Trump’s “Liberation Day” tariffs announcement, markets recovered and increased consistently for the remainder of the quarter. The strategy modestly trailed the Russell 1000 Value Index in the second quarter and returned 2.87% (net) vs 3.79% for the index. The financial and consumer discretionary holdings lagged, while healthcare and communication services outperformed, boosting overall performance. To get an idea of the fund’s best choices for 2025, check out its top 5 positions.

In its second-quarter 2025 investor letter, Diamond Hill Large Cap Fund highlighted stocks such as ConocoPhillips (NYSE:COP). ConocoPhillips (NYSE:COP) produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids. The one-month return of ConocoPhillips (NYSE:COP) was -3.15%, and its shares lost 14.47% of their value over the last 52 weeks. On August 7, 2025, ConocoPhillips (NYSE:COP) stock closed at $92.60 per share, with a market capitalization of $115.652 billion.

Diamond Hill Large Cap Fund stated the following regarding ConocoPhillips (NYSE:COP) in its second quarter 2025 investor letter:

"Among our bottom Q2 individual contributors were CarMax, ConocoPhillips (NYSE:COP) and Diamondback Energy. Shares of oil and gas producers ConocoPhillips and Diamondback Energy were pressured by the combination of growing macroeconomic concerns in the wake of April’s tariff announcements and OPEC’s announcement that it would unwind production cuts early, potentially leading to a material increase in supply in a weaker demand environment and weighing on oil prices."

ConocoPhillips (NYSE:COP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held ConocoPhillips (NYSE:COP) at the end of the first quarter, which was 86 in the previous quarter. While we acknowledge the potential of ConocoPhillips (NYSE:COP) 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 ConocoPhillips (NYSE:COP) and shared the list of most undervalued long term stocks to buy according to hedge funds. 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.