Hotchkis & Wiley, an investment management company, released its first-quarter 2026 investor letter for the “Hotchkis & Wiley Mid-Cap Value Fund.” A copy of the letter can be downloaded here. In the first quarter, geopolitical instability and AI-focused investments were the key market drivers. The energy sector significantly benefited from the Brent crude oil surge due to U.S.-Israel strikes on Iran. The Hotchkis & Wiley Mid-Cap Value Fund outperformed the Russell Midcap Value Index, mainly due to strong stock selection in energy, which returned 79% compared to 37% for the index. The Fund delivered a return of 6.74% in Q1 Vs. 3.68% return for the index. While stock selection in technology, healthcare, and consumer discretionary negatively impacted overall performance. The firm remains focused on its disciplined and long-term investment approach. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Hotchkis & Wiley Mid-Cap Value Fund highlighted Crescent Energy Company (NYSE:CRGY) as a notable contributor. Crescent Energy Company (NYSE:CRGY) is an energy company engaged in the exploration and production of crude oil, natural gas, and natural gas liquids. On April 23, 2026, Crescent Energy Company (NYSE:CRGY) closed at $12.70 per share. One-month return of Crescent Energy Company (NYSE:CRGY) was -7.30%, and its shares gained 45.64% over the past 52 weeks. Crescent Energy Company (NYSE:CRGY) has a market capitalization of $4.16 billion.
Hotchkis & Wiley Mid-Cap Value Fund stated the following regarding Crescent Energy Company (NYSE:CRGY) in its Q1 2026 investor letter:
“Crescent Energy Company (NYSE:CRGY) is an independent E&P operating in the Permian, Eagle Ford and Uinta Basins. Following their merger with Vital Energy, which expanded their geography into the Permian Basin, the Company will be the tenth largest US independent E&P. We own Crescent for its low valuation relative to free cash flow generation (over $700 million annually), improved scale and public float. Crescent outperformed in the first quarter as oil prices surged following the Strait of Hormuz closure, with Brent crude peaking near $127. The company’s Eagle Ford assets benefited from the geopolitical risk premium, while its natural gas hedge book protects cash flows.”
Crescent Energy Company (NYSE:CRGY) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 38 hedge fund portfolios held Crescent Energy Company (NYSE:CRGY) at the end of the fourth quarter, the same as in the previous quarter. While we acknowledge the risk and potential of Crescent Energy Company (NYSE:CRGY) 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 Crescent Energy Company (NYSE:CRGY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Crescent Energy Company (NYSE:CRGY) and shared Miller Value Deep Value Strategy’s views on the company. 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.
