Here’s Why Chevron Corp. (CVX) Traded Down in Q2

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Hedged Equity Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equity markets rebounded in the quarter, rising 23% from intra-period lows to close at record highs. The fund gained 4.86% (net) in the quarter compared to the S&P 500 Index’s 10.94% return and its secondary benchmark, the CBOE S&P 500 Buy/Write Index’s 1.90% return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Meridian Hedged Equity 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 0.75%, and its shares gained 7.66% of their value over the last 52 weeks. On August 25, 2025, Chevron Corporation (NYSE:CVX) stock closed at $158.20 per share, with a market capitalization of $318.745 billion.

Meridian Hedged Equity Fund stated the following regarding Chevron Corporation (NYSE:CVX) in its second quarter 2025 investor letter:

“Chevron Corporation (NYSE:CVX) is a vertically integrated energy company with upstream assets in the Permian Basin and Kazakhstan, and downstream refining and marketing operations. We own Chevron for its capital discipline, strong balance sheet, and ability to generate free cash flow at mid-cycle oil prices. The stock declined after the company reduced its quarterly share repurchase target in recognition of declining commodity prices, the first oil major to do so in this cycle. While fundamentals remain solid, including operational execution, the market read the conservative shift in capital allocation as a potential harbinger of a more difficult operating environment for oil companies.”

Chevron (CVX): A Defensive Retirement Dividend Stock with Energy Sector Strength

An aerial view of an oil rig at sea, the sun glinting off its structure.

Chevron Corporation (NYSE:CVX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 76 hedge fund portfolios held Chevron Corporation (NYSE:CVX) at the end of the second quarter, which was 81 in the previous quarter. While we acknowledge the risk and potential of Chevron Corporation (NYSE:CVX) 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 Chevron Corporation (NYSE:CVX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Chevron Corporation (NYSE:CVX) and shared the list of best commodity stocks to buy. 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.