Here's What Pressured Civitas (CIVI) in Q2

Diamond Hill Capital, an investment management company, released its “Small-Mid Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q2, the market surged uniformly for the rest of the quarter following a sharp decline in April due to President Trump’s “Liberation Day” tariffs announcement. The portfolio returned 5.60% (gross) and 5.37% (net) compared to an 8.59% return for the Russell 2500 Index. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its second-quarter 2025 investor letter, Diamond Hill Small-Mid Cap Fund highlighted stocks such as Civitas Resources, Inc. (NYSE:CIVI). Civitas Resources, Inc. (NYSE:CIVI) is an oil and natural gas exploration and production company. The one-month return of Civitas Resources, Inc. (NYSE:CIVI) was 7.78%, and its shares lost 50.06% of their value over the last 52 weeks. On August 11, 2025, Civitas Resources, Inc. (NYSE:CIVI) stock closed at $30.75 per share, with a market capitalization of $2.849 billion.

Diamond Hill Small-Mid Cap Fund  stated the following regarding Civitas Resources, Inc. (NYSE:CIVI) in its second quarter 2025 investor letter:

"Among our bottom individual Q2 contributors to return were Insperity and Civitas Resources, Inc. (NYSE:CIVI). Shares of oil and gas exploration and production company Civitas 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, possibly materially increasing supply in a weaker demand environment and weighing on oil prices."

Civitas Resources, Inc. (NYSE:CIVI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Civitas Resources, Inc. (NYSE:CIVI) at the end of the first quarter, which was 47 in the previous quarter. While we acknowledge the potential of Civitas Resources, Inc. (NYSE:CIVI) 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 Civitas Resources, Inc. (NYSE:CIVI) and shared the list of oversold NYSE 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.