Diamond Hill Capital, an investment management company, released its “Small Cap Fund” first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1, markets were uneven due to the new presidential administration’s activity, leading to concern about the future. The Russell 3000 Index fell by 4.7% in Q1, the first quarterly loss since Q3 2023. Diamond Hill Small Cap Fund returned -11.56% in Q1, trailing the Russell 2000 Index’s -9.48% return. For more information on the fund’s top picks in 2025, please check its top five holdings.
In its first-quarter 2025 investor letter, Diamond Hill Small Cap Fund highlighted stocks such as Civitas Resources, Inc. (NYSE:CIVI). Civitas Resources, Inc. (NYSE:CIVI) is an oil and natural gas exploration and production company. The one-month return of Civitas Resources, Inc. (NYSE:CIVI) was -11.60%, and its shares lost 64.21% of their value over the last 52 weeks. On May 6, 2025, Civitas Resources, Inc. (NYSE:CIVI) stock closed at $27.13 per share with a market capitalization of $2.512 billion.
Diamond Hill Small Cap Fund stated the following regarding Civitas Resources, Inc. (NYSE:CIVI) in its Q1 2025 investor letter:
Other bottom Q1 contributors included First Advantage, Civitas Resources, Inc. (NYSE:CIVI) and Allegiant Travel. Shares of oil and gas exploration and production company Civitas were pressured as management announced it anticipates lower oil volumes in 2025.
A close up of a tanker truck transporting crude oil, natural gas liquids, and natural gas.
Civitas Resources, Inc. (NYSE:CIVI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held Civitas Resources, Inc. (NYSE:CIVI) at the end of the fourth quarter, compared to 48 in the third quarter. While we acknowledge the potential of Civitas Resources, Inc. (NYSE:CIVI) 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.
In another article, we covered Civitas Resources, Inc. (NYSE:CIVI) and shared the list of top oil & gas E&P stocks outperforming despite sinking oil prices. In addition, please check out our hedge fund investor letters Q1 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.
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