Oakmark Funds, advised by Harris Associates, released its “Oakmark Select Fund” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. Oakmark Select Fund is a non-diversified fund that aims to deliver capital appreciation by investing in mid and large-cap US companies. In the quarter, the Fund (investor class) trailed the S&P 500 Index, returning -7.99% vs. -4.33% for the index. Energy is the only contributor to performance at the sector level, while health care and financials detracted from the performance. The Fund believes that equity markets are more influenced by crowd psychology and short-term fluctuations rather than fundamental value. Accordingly, the portfolios are constricted with patience and discipline. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026.
In its first-quarter 2026 investor letter, Oakmark Select Fund highlighted Phillips 66 (NYSE:PSX) as a leading contributor. Phillips 66 (NYSE:PSX) is a US-based integrated downstream energy company headquartered in Houston, Texas. On April 14, 2026, Phillips 66 (NYSE:PSX) closed at $158.76 per share. One-month return of Phillips 66 (NYSE:PSX) was -8.09%, and its shares gained 64.40% over the past 52 weeks. Phillips 66 (NYSE:PSX) has a market capitalization of $63.62 billion.
Oakmark Select Fund stated the following regarding Phillips 66 (NYSE:PSX) in its Q1 2026 investor letter:
“Phillips 66 (NYSE:PSX) was the top contributor during the quarter. The U.S.-headquartered downstream energy company’s stock price rose as it benefited from higher crack spreads (the difference in price between crude oil and refined petroleum), heightened geopolitical risk and solid fourth-quarter 2025 earnings. Fundamental results have been encouraging, and we believe PSX is set to be a major beneficiary of rising crack spreads. We continue to see PSX as a durably advantaged energy company focused on returning cash flow to shareholders.”
Phillips 66 (NYSE:PSX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 61 hedge fund portfolios held Phillips 66 (NYSE:PSX) at the end of the fourth quarter, up from 47 in the previous quarter. While we acknowledge the risk and potential of Phillips 66 (NYSE:PSX) 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 Phillips 66 (NYSE:PSX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Phillips 66 (NYSE:PSX) and shared the list of most undervalued 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.
