Kosmos Energy Ltd. (KOS) Fell Due to Market Concerns Amid OPEC+ Supply and Demand Fears

Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Mid-Cap Value Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter of 2025, equity market performance experienced significant volatility, primarily due to changes in U.S. trade policies and escalating geopolitical tensions. The fund lagged behind the Russell Midcap Value Index in the second quarter, gaining 3.63% vs 5.35% for the index. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its second-quarter 2025 investor letter, Hotchkis & Wiley Mid-Cap Fund highlighted stocks such as Kosmos Energy Ltd. (NYSE:KOS). Incorporated in 2003, Kosmos Energy Ltd. (NYSE:KOS) is a deep-water exploration and production company. The one-month return of Kosmos Energy Ltd. (NYSE:KOS) was 12.37%, and its shares lost 59.76% of their value over the last 52 weeks. On July 29, 2025, Kosmos Energy Ltd. (NYSE:KOS) stock closed at $2.32 per share with a market capitalization of $1.109 billion.

Hotchkis & Wiley Mid-Cap Fund stated the following regarding Kosmos Energy Ltd. (NYSE:KOS) in its second quarter 2025 investor letter:

“Kosmos Energy Ltd. (NYSE:KOS) is an independent exploration and production (E&P) focused offshore. Kosmos is competitively differentiated because of the expertise it takes to explore, discover and operate assets offshore. Kosmos’ producing assets are located in the US Gulf of Mexico, Ghana and Equatorial Guinea. Shares fell over the quarter on worries about the Organization of the Petroleum Exporting Countries+ (OPEC+) barrels returning to the market, coupled with worries about slowing demand. We continue to believe the valuation of the stock does not fully reflect the value of the Company’s existing production. In addition to its existing production it also has additional brownfield and greenfield liquified natural gas (LNG) development opportunities, an exploration portfolio, and a platform to acquire and operate additional offshore resources.”

Is Kosmos Energy Ltd. (KOS) the Best Oil and Gas Penny Stock to Invest in Now?

A drilling platform in the middle of the ocean, showing the oil and gas exploration process.

Kosmos Energy Ltd. (NYSE:KOS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Kosmos Energy Ltd. (NYSE:KOS) at the end of the first quarter, which was 27 in the previous quarter. While we acknowledge the risk and potential of Kosmos Energy Ltd. (NYSE:KOS) 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 Kosmos Energy Ltd. (NYSE:KOS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Kosmos Energy Ltd. (NYSE:KOS) and shared Patient Capital Opportunity Equity Strategy’s views on the company. 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.