Chevron Corporation (CVX) Rose Following the Long-Awaited Acquisition

Ariel Investments, an investment management company, released its “Ariel Focus Fund” first-quarter investor letter. A copy of the letter can be downloaded here. At the end of the first quarter of 2025, most major U.S. indices recorded losses as investors sought safety. Initial optimism for another strong year of U.S. performance, fueled by economic momentum and the new administration’s pro-business policies, faded as concerns over tariffs and uncertainty in policy direction. In the environment, the fund returned -3.88%, lagging the Russell 1000 Value Index’s +2.14% gain, and ahead of the S&P 500 Index’s -4.27% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Ariel Focus Fund highlighted stocks such as Chevron Corporation (NYSE:CVX). Chevron Corporation (NYSE:CVX) engages in integrated energy and chemicals operations that operate through Upstream and Downstream segments. The one-month return of Chevron Corporation (NYSE:CVX) was 1.77%, and its shares lost 5.27% of their value over the last 52 weeks. On June 11, 2025, Chevron Corporation (NYSE:CVX) stock closed at $144.78 per share, with a market capitalization of $250.792 billion.

Ariel Focus Fund stated the following regarding Chevron Corporation (NYSE:CVX) in its Q1 2025 investor letter:

“Shares of Chevron Corporation (NYSE:CVX) also traded higher in the quarter, following news CVX acquired ~5% of Hess Corporation (HES) stock, reflecting confidence in the completion of its long-awaited acquisition. While an arbitration panel is due to consider the case in May, many signs are pointing to a successful merger which would strengthen CVX’s long-term performance and enhance its portfolio by adding world-class assets. We remain confident in the firm’s ability to remain a global leader in energy production.”

Chevron Corporation (NYSE:CVX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 81 hedge fund portfolios held Chevron Corporation (NYSE:CVX) at the end of the first quarter, which was 81 in the previous quarter. While we acknowledge the potential of Chevron Corporation (NYSE:CVX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Chevron Corporation (NYSE:CVX) and shared the list of best Dow stocks according to hedge funds. In addition, please check out our hedge fund investor letters Q1 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.