Diamondback Energy (FANG) Jumped Amid War-Driven Favoritism

Diamondback Energy (FANG) Jumped Amid War-Driven Favoritism Soumya Eswaran Tue, May 26, 2026 at 2:18 PM GMT+2 3 min read FANG Diamond Hill Capital, a  First Eagle Investment Management  company, issued its Q1 2026 investor letter for its “Large Cap Strategy”.  A copy of the letter is available to download here . The Strategy declined 2.

39% (net of fees), trailing the Russell 1000 Value Index’s 2. 10%. The performance was positively affected by stock selection in industrials and consumer discretionary, along with an underweight in communication services.

While stock selection in information technology, financials, and health care was the largest detractor from relative performance. The war in Iran is creating uncertainty in markets. However, it effectively supported the portfolio’s focus on oil-sensitive exploration and production companies.

Technology companies are under pressure in Q1 amid concerns about AI's potential negative effects on their businesses, but their competitive advantages remain stronger than their current valuations suggest. Despite these challenges, the market is beginning to expand into more attractive opportunities, especially in defensive sectors and cyclicals that do not benefit from AI. In addition, please check the Fund’s top five holdings to know its best picks in 2026.

In its first-quarter 2026 investor letter, Diamond Hill Capital Large Cap Strategy highlighted stocks like Diamondback Energy, Inc. (NASDAQ: FANG ). Diamondback Energy, Inc.

(NASDAQ:FANG) is a leading oil and natural gas company that acquires, develops, explores, and produces unconventional, onshore oil and natural gas reserves. On May 22, 2026, Diamondback Energy, Inc. (NASDAQ:FANG) closed at $200.

71 per share. One-month return of Diamondback Energy, Inc. (NASDAQ:FANG) was 2.

18%, and its shares gained 47. 73% over the past 52 weeks. Diamondback Energy, Inc.

(NASDAQ:FANG) has a market capitalization of $56. 46 billion. Diamond Hill Capital Large Cap Strategy stated the following regarding Diamondback Energy, Inc.

(NASDAQ:FANG) in its Q1 2026 investor letter: "Exploration and production companies ConocoPhillips and Diamondback Energy, Inc. (NASDAQ:FANG) saw shares rise as the sharp rise in oil prices drove a broad rally across US-based oil producers. As geopolitical tensions in the Middle East tightened the supply outlook, investors increasingly rewarded US producers for their leverage to higher commodity prices, potential for outsized cash generation and capacity for strong capital returns.

" Bernstein Reiterates Outperform on Diamondback Energy (FANG) Amid Oil Supply Concerns Diamondback Energy, Inc. (NASDAQ:FANG) is not on our list of  40 Most Popular Stocks Among Hedge Funds Heading Into 2026 . According to our database, 46 hedge fund portfolios held Diamondback Energy, Inc.

(NASDAQ:FANG) at the end of the fourth quarter, up from 42 in the previous quarter.  While we acknowledge the potential of Diamondback Energy, Inc. (NASDAQ:FANG) 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 . Story Continues In  another article , we covered Diamondback Energy, Inc. (NASDAQ:FANG) and shared Yacktman Focused Fund's views on the company.

In addition, please check out our hedge fund investor letters Q1 2026  page for more investor letters from hedge funds and other leading investors. READ NEXT:  33 Stocks That Should Double in 3 Years  and  15 Stocks That Will Make You Rich in 10 Years . Disclosure: None.

This article is originally published at Insider Monkey .