Palm Valley Capital Management, an investment management firm, has issued the second-quarter 2026 investor letter for the “Palm Valley Capital Fund.” A copy of the letter can be downloaded here. In the second quarter, the fund’s investor class gained 1.80%, while the S&P SmallCap 600 rose 19.7% and the Morningstar Small Cap Total Return Index returned 14.0%. The Strategy primarily focused on small-cap categories, allocating 75% to cash equivalents. This led to underperformance relative to benchmarks. The Fund is currently seeking more small-cap opportunities that meet its return criteria and will act swiftly if market conditions improve. The Index benefited from strong contributions from data center construction and biotech sectors, while the energy industry lagged. Additionally, reviewing the fund’s top five holdings can reveal its best investments in 2026.
In its second-quarter 2026 investor letter, Palm Valley Capital Management highlighted Chord Energy Corporation (NASDAQ:CHRD). Chord Energy Corporation (NASDAQ:CHRD) is a leading US-based independent exploration and production company that engages in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids. On July 7, 2026, Chord Energy Corporation (NASDAQ:CHRD) closed at $116.84 per share. One-month return of Chord Energy Corporation (NASDAQ:CHRD) was -15.49%, and its shares gained 9.28% over the past 52 weeks. Chord Energy Corporation (NASDAQ:CHRD) has a market capitalization of $6.57 billion.
Palm Valley Capital Management stated the following regarding Chord Energy Corporation (NASDAQ:CHRD) in its Q2 2026 investor letter:
“The stocks most negatively affecting the Fund’s second quarter return were Amdocs (ticker: DOX), LKQ (ticker: LKQ), and Chord Energy Corporation (NASDAQ:CHRD). Chord Energy was also a bottom contributor in the quarter. Although Chord reported solid first quarter results and raised its 2026 production guidance, this was overshadowed by the broader selloff in energy stocks driven by falling oil prices after geopolitical tensions eased.”
Chord Energy Corporation (NASDAQ:CHRD) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 46 hedge fund portfolios held Chord Energy Corporation (NASDAQ:CHRD) at the end of the first quarter, up from 45 in the previous quarter. While we acknowledge the risk and potential of Chord Energy Corporation (NASDAQ:CHRD) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Chord Energy Corporation (NASDAQ:CHRD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Chord Energy Corporation (NASDAQ:CHRD) and shared Madison Small Cap Fund’s views on the company. Chord Energy Corporation (NASDAQ:CHRD) contributed to Palm Valley Capital Management’s performance in Q1 2026. In addition, please check out our hedge fund investor letters Q1 2026 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.
