Here’s Why Diamondback Energy (FANG) Slid in Q2

Diamond Hill Capital, an investment management company, released its “Large Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. After a significant decline in April following President Trump’s “Liberation Day” tariffs announcement, markets recovered and increased consistently for the remainder of the quarter. The strategy modestly trailed the Russell 1000 Value Index in the second quarter and returned 2.87% (net) vs 3.79% for the index. The financial and consumer discretionary holdings lagged, while healthcare and communication services outperformed, boosting overall performance. 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 Large Cap Fund highlighted stocks such as Diamondback Energy, Inc. (NASDAQ:FANG). Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company. The one-month return of Diamondback Energy, Inc. (NASDAQ:FANG) was -2.22%, and its shares lost 29.36% of their value over the last 52 weeks. On August 7, 2025, Diamondback Energy, Inc. (NASDAQ:FANG) stock closed at $141.12 per share, with a market capitalization of $40.852 billion.

Diamond Hill Large Cap Fund stated the following regarding Diamondback Energy, Inc. (NASDAQ:FANG) in its second quarter 2025 investor letter:

“Among our bottom Q2 individual contributors were CarMax, ConocoPhillips and Diamondback Energy, Inc. (NASDAQ:FANG). Shares of oil and gas producers ConocoPhillips and Diamondback Energy were pressured by the combination of growing macroeconomic concerns in the wake of April’s tariff announcements and OPEC’s announcement that it would unwind production cuts early, potentially leading to a material increase in supply in a weaker demand environment and weighing on oil prices.”

Why Diamondback Energy (FANG) Earns its Strong Buy Rating in 2025

A pipeline worker overseeing the flow of crude oil into storage tanks from an integrated water system.

Diamondback Energy, Inc. (NASDAQ:FANG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held Diamondback Energy, Inc. (NASDAQ:FANG) at the end of the first quarter, which was 53 in the previous quarter. While we acknowledge the risk and potential of Diamondback Energy, Inc. (NASDAQ:FANG) 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 Diamondback Energy, Inc. (NASDAQ:FANG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Diamondback Energy, Inc. (NASDAQ:FANG) and shared the list of best strong buy stocks that pay dividends. 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.