Yacktman Fund capitalises on Middle East oil shocks with Canadian Natural Resources
The AMG Yacktman Focused Fund reported a 10.37 per cent return in the first quarter of 2026, citing Canadian Natural Resources Limited as a key beneficiary of supply disruptions.
Yachtman Asset Management has highlighted the strategic value of its energy holdings in its first-quarter 2026 investor letter, reporting that the AMG Yacktman Focused Fund returned 10.37 per cent for the period. The fund outperformed the Russell 1000 Value Index, which returned 2.10 per cent, and significantly beat the S&P 500, which posted a negative return of 4.33 per cent.
The letter identified Canadian Natural Resources Limited (CNQ) as a primary driver of this performance, noting that the company benefited from oil price shocks associated with the ongoing conflict in the Middle East. Yacktman described its energy sector investments, including CNQ, as a natural hedge against geopolitical risks, a strategy implemented after the fund initially invested in the Canadian producer in 2021.
At the time of the initial investment, energy company valuations had suffered through the aftermath of the COVID-19 crisis, with environmental, social, and governance initiatives weighing on market sentiment for the sector. By 2022, the fund had added other energy names to its portfolio, including ConocoPhillips, Diamondback Energy, and EOG Resources, at a time when the market capitalisation of the entire sector represented a fraction of the total market.
CNQ shares closed at $48.61 on May 22, 2026, reflecting a one-month return of 7.97 per cent and a 52-week gain of 56.55 per cent. The company currently holds a market capitalisation of $101.39 billion. Despite the strong quarterly performance, the fund noted that CNQ is not among the 40 most popular stocks among hedge funds heading into 2026, with only 34 hedge fund portfolios holding the stock at the end of the fourth quarter, down from 45 in the previous quarter.
The broader market context for the fund’s success includes a backdrop of US markets compounding mid-twenties per cent returns from 2023 to 2025, with the S&P 500 posting new highs. Yacktman stated there are no indications of a slowdown in the US market despite significant geopolitical events, maintaining a disciplined approach focused on building a portfolio of strong, risk-adjusted returns throughout the market cycle.
