American Century Investments, an investment management company, released its first-quarter 2026 investor letter for the “American Century Investments Small Cap Value Fund.” A copy is available to download here. Equity markets encountered challenges during the quarter, initially due to fears of AI disruption and later due to the conflict in Iran. The Fund’s Investor Class returned 3.85% for the quarter, outperforming a 4.96% return for the Russell 2000 Value Index. While the Industrial and Materials sectors underperformed, the exposure to Energy positively impacted relative performance. The portfolio focuses on investing in small-cap companies with undervalued quality and earnings potential. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, American Century Investments Small Cap Value Fund highlighted Magnolia Oil & Gas Corporation (NYSE:MGY). Magnolia Oil & Gas Corporation (NYSE:MGY) is a US-based leading independent oil and natural gas company that engages in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids reserves. On June 8, 2026, Magnolia Oil & Gas Corporation (NYSE:MGY) closed at $28.03 per share. One-month return of Magnolia Oil & Gas Corporation (NYSE:MGY) was -2.13%, and its shares gained 19.53% over the past 52 weeks. Magnolia Oil & Gas Corporation (NYSE:MGY) has a market capitalization of $5.34 billion.
American Century Investments Small Cap Value Fund stated the following regarding Magnolia Oil & Gas Corporation (NYSE:MGY) in its Q1 2026 investor letter:
“Magnolia Oil & Gas Corporation (NYSE:MGY). The Houston-based oil and gas company benefited as the energy sector rallied during the quarter. The stock jumped higher in March as oil prices spiked and investors weighed the implications of continued supply disruptions caused by the war in Iran.”
Magnolia Oil & Gas Corporation (NYSE:MGY) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 32 hedge fund portfolios held Magnolia Oil & Gas Corporation (NYSE:MGY) at the end of the first quarter, the same as in the previous quarter. While we acknowledge the risk and potential of Magnolia Oil & Gas Corporation (NYSE:MGY) 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 Magnolia Oil & Gas Corporation (NYSE:MGY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Magnolia Oil & Gas Corporation (NYSE:MGY) and shared Diamond Hill Capital’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.
