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Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Fund” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. During the first quarter, the U.S. equity market declined, with the S&P 500 Index falling by 4.33%. The fixed-income sector also saw a downturn; the Bloomberg U.S. Aggregate Bond Index fell by 0.05%. In terms of investment styles, the value outperformed growth. Macroeconomic conditions indicated a slowdown in growth while inflationary pressures persisted. Additionally, geopolitical events contributed to heightened volatility during this period. For the first quarter of 2026, the Aristotle Value Equity Fund (Class I-2) recorded a total return of -2.23%, underperforming the Russell 1000 Value Index’s return of 2.10% but outperforming the S&P 500 Index’s return of -4.33%. In this challenging environment, the firm remains focused on what it considers to be more assessable and sustainable: the long-term fundamentals of individual businesses. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Aristotle Value Equity Strategy highlighted Chevron Corporation (NYSE:CVX) as a newly added psoition. Chevron Corporation (NYSE:CVX) is a leading integrated energy and chemicals company that operates through Upstream, Downstream, and All Other segments. On May 6, 2026, Chevron Corporation (NYSE:CVX) closed at $185.16 per share. One-month return of Chevron Corporation (NYSE:CVX) was -2.73%, and its shares gained 35.11% over the past 52 weeks. Chevron Corporation (NYSE:CVX) has a market capitalization of $366.06 billion.
Aristotle Value Equity Strategy stated the following regarding Chevron Corporation (NYSE:CVX) in its Q1 2026 investor letter:
"Chevron Corporation (NYSE:CVX): Headquartered in Houston, Texas, Chevron is one of the world’s largest integrated energy companies, with operations spanning upstream exploration and production, downstream refining and marketing, and chemicals. The company traces its roots back to the 1911 breakup of Standard Oil and today produces approximately 4 million barrels of oil equivalent per day.
While Chevron operates across the full value chain, roughly 85% of earnings are generated from upstream operations, reflecting its oil-leveraged portfolio. This upstream concentration is intentional and supported by a portfolio of low-cost, long-lived assets. The asset base includes deepwater production in the Gulf of America and Guyana, a large and advantaged Permian Basin position, long-lived conventional production in Kazakhstan, and liquefied natural gas projects in Australia. Chevron also maintains a presence in Venezuela, though it remains a relatively small part of its portfolio…” (Click here to read the full text)
Chevron Corporation (NYSE:CVX) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 86 hedge fund portfolios held Chevron Corporation (NYSE:CVX) at the end of the fourth quarter, compared to 89 in the previous quarter. While we acknowledge the potential of Chevron Corporation (NYSE:CVX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered Chevron Corporation (NYSE:CVX) and shared the list of must-buy stocks with the strongest 1Q2026 earnings beats. 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.