ConocoPhillips was Oakmark Fund's top Q2 detractor as crude prices eased after Middle East disruptions. The fund sees long-term growth from the company's deep asset base and shareholder returns focus.
ConocoPhillips was the top detractor in Oakmark Fund's second-quarter portfolio as the stock declined when crude prices eased after earlier gains tied to Middle East disruptions, the fund said in its quarterly update.
The stock closed at $112.85 on July 13, giving the company a market capitalization of $137.48 billion. Over the past month, shares returned 1.36%, and they gained 21.93% over the last 52 weeks. Oakmark noted that the company's underlying fundamentals continue to track expectations.
"We value management's focus on shareholder returns and see a long runway for growth from the company's geographically diverse and inventory-deep energy portfolio," Oakmark wrote.
Hedge fund interest in ConocoPhillips grew in the first quarter, with 74 funds holding a position, up from 65 in the fourth quarter of 2025, according to Oakmark's data. The fund itself continues to hold the stock despite the second-quarter weakness.
The decline in ConocoPhillips came as the broader energy sector lagged the S&P 500 during the period. Information technology and energy were the two sectors that detracted from Oakmark's returns, while industrials and financials contributed. The fund returned 2.45% in the quarter, well behind the S&P 500's 15.20% gain.
Oakmark's portfolio managers said they see ConocoPhillips' inventory depth and geographic diversity as long-term strengths, even if near-term crude price direction remains uncertain. The company's COP stock page shows an Alpha Score of 50 out of 100, reflecting a mixed outlook.
The fund's Q2 letter highlighted that narrow market leadership from AI-benefited companies kept many energy and value names under pressure during the quarter. Despite the detraction, Oakmark said it sees a long runway for ConocoPhillips, citing management's commitment to shareholder returns and a portfolio that spans the Permian to the North Slope.
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