Hotchkis & Wiley, an investment management company, released its first-quarter 2026 investor letter for the “Hotchkis & Wiley Large Cap Fundamental Value Fund.” A copy of the letter can be downloaded here. In Q1 2026, the S&P 500 Index declined by -4.4%, driven by geopolitical uncertainty and AI investment themes. Brent crude oil surged over 100% due to U.S.-Israel strikes on Iran, benefiting the energy sector, which outperformed significantly. Value stocks surpassed growth, with the Russell 1000 Value Index gaining +2.1% compared to -9.8% for the Growth Index. However, the Hotchkis & Wiley Large Cap Fundamental Value Fund lagged, returning 0.36% vs. 2.10% for the Russell 1000 Value Index, driven by its overweight exposure in software and health insurers. However, the energy holdings, which returned +49%, were the portfolio’s top performers. 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 Large Cap Fundamental Value Fund highlighted Ovintiv Inc. (NYSE:OVV). Ovintiv Inc. (NYSE:OVV) is a North American-based oil and natural gas exploration and production company. On April 27, 2026, Ovintiv Inc. (NYSE:OVV) closed at $56.94 per share. One-month return of Ovintiv Inc. (NYSE:OVV) was -2.17%, and its shares gained 68.03% over the past 52 weeks. Ovintiv Inc. (NYSE:OVV) has a market capitalization of $16.13 billion.
Hotchkis & Wiley Large Cap Fundamental Value Fund stated the following regarding Ovintiv Inc. (NYSE:OVV) in its Q1 2026 investor letter:
“Ovintiv Inc. (NYSE:OVV) is an independent E&P with leading positions in the Permian and Montney basins that trades at a discount despite high-quality, long-life unconventional assets. We own Ovintiv for exposure to an energy market generating significant free cash flow, with assets positioned favorably on the global cost curve. Ovintiv outperformed in the first quarter as oil prices surged following the Strait of Hormuz closure, with Brent crude peaking near $127. The company’s Permian and Montney assets benefited from the geopolitical risk premium, while its disciplined capital allocation and shareholder return framework resonated with investors seeking cash flow generation.”
Ovintiv Inc. (NYSE:OVV) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 55 hedge fund portfolios held Ovintiv Inc. (NYSE:OVV) at the end of the fourth quarter, up from 52 in the previous quarter. While we acknowledge the risk and potential of Ovintiv Inc. (NYSE:OVV) 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 Ovintiv Inc. (NYSE:OVV) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Ovintiv Inc. (NYSE:OVV) and shared the list of cheap energy stocks to buy. 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.
