In This Article:
Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Mid-Cap Value Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The Hotchkis & Wiley Mid-Cap Value Fund returned -2.39% in the fourth quarter, underperforming the Russell Midcap Value Index’s -1.75% return. The portfolio underperformed the index over calendar year 2024. As in the previous year, value stocks lagged behind their growth counterparts for 2024. For more information on the fund’s best picks in 2024, please check its top five holdings.
In its fourth quarter 2024 investor letter, Hotchkis & Wiley Mid-Cap Value Fund emphasized 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 -11.20%, and its shares lost 62.12% of their value over the last 52 weeks. On March 28, 2025, Kosmos Energy Ltd. (NYSE:KOS) stock closed at $2.22 per share with a market capitalization of $1.061 billion.
Hotchkis & Wiley Mid-Cap Value Fund stated the following regarding Kosmos Energy Ltd. (NYSE:KOS) in its Q4 2024 investor letter:
"Kosmos Energy Ltd. (NYSE:KOS) is an independent exploration and production company focused offshore. In addition to its existing production, KOS has liquefied natural gas assets that are set to begin production in 2024 and a platform to acquire and operate additional offshore resources. Performance was negatively impacted by a report stating the company was interested in acquiring competitor Tullow Oil. The report was subsequently dismissed and shares rebounded modestly, though not enough to fully recover. We continue to believe Kosmos enjoys a competitive advantage due to the expertise required to explore, discover, and operate assets offshore. We also view the stock as being significantly undervalued as the stock doesn’t fully reflect the value of the company’s existing production."
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, 27 hedge fund portfolios held Kosmos Energy Ltd. (NYSE:KOS) at the end of the fourth quarter compared to 27 in the third quarter. While we acknowledge the potential of Kosmos Energy Ltd. (NYSE:KOS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.