Ariel Investments released its second-quarter investor letter for the “Ariel Focus Fund.” Despite initial market sell-off, the fund returned +4.75% in Q2 2025, outperforming Russell 1000 Value Index but lagging behind S&P 500 Index. Top five holdings can be found in the letter, showcasing the fund’s best picks for the year.

APA Corporation (NASDAQ:APA) was highlighted in the investor letter, engaging in oil and gas exploration. The stock had a one-month return of 2.34%, with shares losing 39.81% value over 52 weeks. On July 18, 2025, APA Corporation (NASDAQ:APA) closed at $18.82 per share, with a market cap of $6.791 billion.

Ariel Focus Fund mentioned APA Corporation (NASDAQ:APA) in its letter, noting its detracting performance amid energy sector concerns. The company focuses on cost reduction, asset divestiture, and operational efficiency to enhance shareholder value. The fund believes APA Corporation (NASDAQ:APA) is undervalued relative to its intrinsic worth.

APA Corporation (NASDAQ:APA) is not among the “30 Most Popular Stocks Among Hedge Funds.” While 42 hedge fund portfolios held APA Corporation (NASDAQ:APA) in Q1, AI stocks are seen as offering greater potential upside with lower downside risk. If seeking an undervalued AI stock benefiting from tariffs and onshoring trend, check out the free report on the best short-term AI stock.

Read more at Yahoo Finance: APA Corporation (APA) Slid on Concerns Over Poor Investor Sentiment