Diamond Hill Select Strategy Added Antero Resources Corporation (AR) Due to Composite Growth Drivers

Diamond Hill Capital, an investment management company, released its “Select Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets rebounded from a sharp downturn at the start of April following the President’s “Liberation Day” tariffs announcement. As measured by the Russell 3000 Index, US stocks rose approximately 11%. Large-cap stocks saw the highest increase this quarter, rising just over 11%, while small-cap and mid-cap stocks gained approximately 8.5% each. The portfolio delivered positive results in the quarter but trailed the Russell 3000 Index. The strategy returned 7.31% (net) vs 10.99% for the index. To get an idea of the fund’s best choices for 2025, check out its top 5 positions.

In its second-quarter 2025 investor letter, Diamond Hill Capital Select Strategy highlighted stocks such as Antero Resources Corporation (NYSE:AR). Headquartered in Denver, Colorado, Antero Resources Corporation (NYSE:AR) is an oil and natural gas development and exploration company. On September 29, 2025, Antero Resources Corporation (NYSE:AR) stock closed at $33.55 per share. One-month return of Antero Resources Corporation (NYSE:AR) was 3.39%, and its shares gained 17.06% of their value over the last 52 weeks. Antero Resources Corporation (NYSE:AR) has a market capitalization of $10.538 billion.

Diamond Hill Capital Select Strategy stated the following regarding Antero Resources Corporation (NYSE:AR) in its second quarter 2025 investor letter:

“Despite markets’ relatively sharp bounce following April’s downward volatility, we were able to initiate two new positions in the quarter at what we consider compelling valuations: Salesforce and Antero Resources Corporation (NYSE:AR).

Antero Resources is a highly disciplined, independent oil and natural gas company with a particular focus on natural gas. The company is consequently well-positioned to benefit from the second wave of the US’s liquid natural gas buildout. Given its transportation capacity, Antero Resources can reliably move its gas to premium-priced Gulf Coast hubs, and its captive midstream system further strengthens its competitive position. Further, Antero’s strict capital discipline has enabled it to operate in maintenance mode, prioritizing debt reduction over growth and maximizing free cash flow generation. Looking forward, we believe the company is poised to pivot toward more accretive capital returns, and so we capitalized on the Liberation Day-related market noise to initiate a position at an attractive discount to our estimate of intrinsic value.”

Oil and Gas Production by State: Top 15

Antero Resources Corporation (NYSE:AR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 72 hedge fund portfolios held Antero Resources Corporation (NYSE:AR) at the end of the second quarter, up from 67 in the previous quarter. While we acknowledge the risk and potential of Antero Resources Corporation (NYSE:AR) 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 Antero Resources Corporation (NYSE:AR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Antero Resources Corporation (NYSE:AR) and shared the list of best mid-cap stocks with huge upside potential. In addition, please check out our hedge fund investor letters Q2 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.