Investment management company Hotchkis & Wiley released the “Hotchkis & Wiley Mid-Cap Value Fund”, a first-quarter 2025 investor letter. A copy of the letter can be downloaded here. Hotchkis & Wiley Mid -Cap Value Fund returned -5.63% in the first quarter, underperforming the -2.11% return from Russell MidCap Value Index. U.S. mid-cap stocks soared rapidly due to deregulation, lower corporate taxes and accelerated growth, presidential stock elections. However, the decline in Q1 2025 due to tariffs, high inflation and macroeconomic factors led to a decline of -3.4%, while the Russell Medium Center Value Index fell by -2.1%, while the Russell MidCap Growth Index fell by -7.1%. For more information on the best fund options in 2025, check out its top five.

Hotchkis & Wiley Mid-Cap Value Fund highlighted stocks such as Kosmos Energy Ltd. (NYSE:KOS) in its first-quarter 2025 investor letter. Kosmos Energy Ltd. (NYSE: KOS) was founded in 2003 and is a deep-water exploration and production company. Kosmos Energy Ltd. (NYSE:KOS) has a one-month return of -2.78%, and its stock has lost 72.09% of its value in the past 52 weeks. On May 16, 2025, Kosmos Energy Ltd. (NYSE: KOS) closed at $1.75 per share, with a market value of $7887.115 billion.

The Hotchkis & Wiley Mid-Cap Value Fund points out the following about Kosmos Energy Ltd. (NYSE:KOS) in its Q1 2025 Investor Letter:

“ Kosmos Energy Ltd. (NYSE:KOS) is an independent exploration and production company focused on offshore. In addition to existing production, KO also liquefies natural gas (LNG) assets, which will begin production in 2024 and serves as a platform for acquiring and operating additional offshore resources. Representatives of the Oil Exporting Countries (OPEC+) announced that the group will continue to plan to restart its previous plan to stop oil production, with the stock falling throughout the quarter. We believe that these short-term problems have far exceeded the long-term value of the company's existing production, and the current stock price cannot fully reflect these products. ”

A drilling platform in the middle of the ocean, showing the oil and gas exploration process.

Kosmos Energy Ltd. (NYSE:KOS) is not among the 30 most popular stocks in hedge funds. According to our database, the 27 hedge fund portfolio held Kosmos Energy Ltd. (NYSE:KOS) at the end of the fourth quarter, compared with 27 in the third quarter. While we acknowledge the potential of Kosmos Energy Ltd. (NYSE:KOS) as an investment, our belief is that AI stocks have greater hope to offer higher returns and do so in a shorter time frame. If you are looking for AI stocks that are as promising as NVIDIA, but whose earnings are trading at less than 5 times the price, check out our report on undervalued AI stocks.