Positive Earnings Report Lifted APA Corp. (APA) in Q3

Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Large Cap Disciplined Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The S&P 500 Index recorded a return of +8.1% in the third quarter of 2025, closing the period near its all-time highs. Technology and communication services drove the broad large-cap market while small caps outperformed their large counterparts in the quarter. The fund outperformed the Russell 1000 Value Index in the quarter, returning 6.41% vs 5.33% for the index. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its third-quarter 2025 investor letter, Hotchkis & Wiley Large Cap Disciplined Value Fund highlighted stocks such as APA Corporation (NASDAQ:APA). APA Corporation (NASDAQ:APA) engages in oil and natural gas exploration, development, and production. The one-month return of APA Corporation (NASDAQ:APA) was 7.75%, and its shares gained 8.59% of their value over the last 52 weeks. On November 6, 2025, APA Corporation (NASDAQ:APA) stock closed at $23.64 per share, with a market capitalization of $8.416 billion.

Hotchkis & Wiley Large Cap Disciplined Value Fund stated the following regarding APA Corporation (NASDAQ:APA) in its third quarter 2025 investor letter:

"APA Corporation (NASDAQ:APA) is an independent Exploration and Production company operating offshore in Midland and Delaware basins in the Permian and onshore Egypt. Stock performance improved in Q3 following a positive earnings report. We continue to believe that APA is misunderstood as investors are focusing on relatively shorter resource life in the Permian without factoring reinvestment opportunities in Suriname, Egypt, and potentially Alaska. APA has lucrative financial contracts that allow it to generate significant free cash flow from differentials in natural gas prices between the Permian (Waha), the Houston Ship Channel, Henry Hub and for global liquefied natural gas."

APA Corporation (NASDAQ:APA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 33 hedge fund portfolios held APA Corporation (NASDAQ:APA) at the end of the second quarter, compared to 42 in the previous quarter.  While we acknowledge the potential of APA Corporation (NASDAQ:APA) 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 APA Corporation (NASDAQ:APA) and shared the list of lowest PE ratio S&P 500 stocks. APA Corporation (NASDAQ:APA) detracted from Hotchkis & Wiley Large Cap Disciplined Value Fund’s performance in the previous quarter due to concerns about increased supply from OPEC+ and slowing demand. 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.