Diamond Hill Capital, a First Eagle Investment Management company, issued its Q1 2026 investor letter for its “Large Cap Strategy”. A copy of the letter is available to download here. The Strategy declined 2.39% (net of fees), trailing the Russell 1000 Value Index’s 2.10%. The performance was positively affected by stock selection in industrials and consumer discretionary, along with an underweight in communication services. While stock selection in information technology, financials, and health care was the largest detractor from relative performance. The war in Iran is creating uncertainty in markets. However, it effectively supported the portfolio’s focus on oil-sensitive exploration and production companies. Technology companies are under pressure in Q1 amid concerns about AI’s potential negative effects on their businesses, but their competitive advantages remain stronger than their current valuations suggest. Despite these challenges, the market is beginning to expand into more attractive opportunities, especially in defensive sectors and cyclicals that do not benefit from AI. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Diamond Hill Capital Large Cap Strategy highlighted ConocoPhillips (NYSE:COP). ConocoPhillips (NYSE:COP) is a US-based energy company that produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids. On May 22, 2026, ConocoPhillips (NYSE:COP) closed at $120.46 per share. One-month return of ConocoPhillips (NYSE:COP) was -1.00%, and its shares gained 41.40% over the past 52 weeks. ConocoPhillips (NYSE:COP) has a market capitalization of $146.76 billion.
Diamond Hill Capital Large Cap Strategy stated the following regarding ConocoPhillips (NYSE:COP) in its Q1 2026 investor letter:
“Exploration and production companies ConocoPhillips (NYSE:COP) and Diamondback Energy saw shares rise as the sharp rise in oil prices drove a broad rally across US-based oil producers. As geopolitical tensions in the Middle East tightened the supply outlook, investors increasingly rewarded US producers for their leverage to higher commodity prices, potential for outsized cash generation and capacity for strong capital returns.”
ConocoPhillips (NYSE:COP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 65 hedge fund portfolios held ConocoPhillips (NYSE:COP) at the end of the fourth quarter, compared to 72 in the previous quarter. While we acknowledge the risk and potential of ConocoPhillips (NYSE:COP) 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 ConocoPhillips (NYSE:COP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered ConocoPhillips (NYSE:COP) and shared the list of best LNG stocks to buy in 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.
