LRT Global Opportunities Strategy: Exxon Mobil Corp (XOM) is Pragmatically Navigating The Global Energy Transition

LRT Capital Management, an investment management company, released its “LRT Global Opportunities Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy leverages a systematic long/short approach to generate positive returns while effectively controlling downside risks and maintaining low net exposure to the equity markets. In September, the strategy returned -8.00% (net), and the YTD return was -0.17%. It was a challenging month for the strategy, as the market indexes surged, with a select few highly overvalued mega-cap stocks, while the rest of the market declined. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, LRT Global Opportunities Strategy highlighted stocks such as Exxon Mobil Corporation (NYSE:XOM). Exxon Mobil Corporation (NYSE:XOM) is an exploration and production company of crude oil and natural gas. The one-month return of Exxon Mobil Corporation (NYSE:XOM) was 1.56%, and its shares lost 6.41% of their value over the last 52 weeks. On October 7, 2025, Exxon Mobil Corporation (NYSE:XOM) stock closed at $114.26 per share, with a market capitalization of $487.119 billion.

LRT Global Opportunities Strategy stated the following regarding Exxon Mobil Corporation (NYSE:XOM) in its third quarter 2025 investor letter:

"Exxon Mobil Corporation (NYSE:XOM) stands as one of the world's preeminent integrated energy and chemical manufacturers, with a history of operational excellence and technological innovation that has shaped the global energy landscape. The company's business model is built upon a vast, vertically integrated structure that spans the entire value chain, from the exploration and production of crude oil and natural gas to the manufacturing of high-value fuels, lubricants, and petrochemicals. This integration provides significant operational synergies and a resilient financial profile capable of navigating the inherent cyclicality of commodity markets.

The core of Exxon Mobil's earnings power resides in its Upstream portfolio, which is increasingly concentrated in highly advantaged, low-cost-of-supply assets. Strategic developments in areas such as the Permian Basin in the United States and the prolific Stabroek Block offshore Guyana are central to the company's production growth and long-term cash flow generation. These world-class assets are characterized by their scale and low breakeven costs, enabling profitable production even in lower price environments and positioning the company to efficiently meet global energy demand…” (Click here to read the full text)

Exxon Mobil Corporation (NYSE:XOM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 88 hedge fund portfolios held Exxon Mobil Corporation (NYSE:XOM) at the end of the second quarter, compared to 94 in the previous quarter. While we acknowledge the potential of EXXON MOBIL CORPORATION (NYSE:XOM) 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 Exxon Mobil Corporation (NYSE:XOM) and shared the list of safest stocks to invest in. In addition, please check out our hedge fund investor letters Q3 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.