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Yachtman Asset Management released its first-quarter 2026 investor letter for its AMG “Yacktman Focused Fund”. A copy of the letter is available to download here.  The Fund returned 10.37% for the first quarter, outperforming both the Russell 1000® Value Index and the S&P 500 Index, which returned 2.10% and -4.33%, respectively. The U.S. markets continue to post new highs, with the S&P 500® having compounded at mid-twenties percent returns from 2023 to 2025. The letter noted that there are no indications of a slowdown in the US market, despite significant geopolitical events. The Fund remains disciplined, investing in companies and building a portfolio of strong, risk-adjusted returns throughout the market cycle, emphasizing a long-term strategy for differentiated returns. In addition, please check the Fund’s top five holdings to know its best picks in 2026.

In its first-quarter 2026 investor letter, Yacktman Focused Fund highlighted Canadian Natural Resources Limited (NYSE:CNQ). Canadian Natural Resources Limited (NYSE:CNQ) is an energy company that engages in acquisition, exploration, development, production, marketing, and sale of crude oil, natural gas, and natural gas liquids (NGLs). On May 22, 2026, Canadian Natural Resources Limited (NYSE:CNQ) closed at $48.61 per share. One-month return of Canadian Natural Resources Limited (NYSE:CNQ) was 7.97%, and its shares gained 56.55% over the past 52 weeks. Canadian Natural Resources Limited (NYSE:CNQ) has a market capitalization of $101.39 billion.

Yacktman Focused Fund stated the following regarding Canadian Natural Resources Limited (NYSE:CNQ) in its Q1 2026 investor letter:

"The energy companies in the portfolio contributed strongly to performance in the quarter: Canadian Natural Resources Limited (NYSE:CNQ), ConocoPhillips Company, Diamondback Energy, and EOG Resources, Inc. All were beneficiaries of the oil price shocks associated with the conflict in the Middle East. We initially invested in CNQ in 2021 when energy company valuations had suffered through the COVID-19 crisis. Environmental, social, and governance (ESG) initiatives also weighed on market sentiment about the sector. In 2022 we added the other energy names at a time when the market cap of the entire sector was a fraction of the total market. These energy investments were designed in part to serve as a natural hedge in the face of geopolitical risks should they arise."

Canadian Natural Resources Limited (NYSE:CNQ) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 34 hedge fund portfolios held Canadian Natural Resources Limited (NYSE:CNQ) at the end of the fourth quarter, compared to 45 in the previous quarter. While we acknowledge the potential of Canadian Natural Resources Limited (NYSE:CNQ) 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 Canadian Natural Resources Limited (NYSE:CNQ) and shared the list of best natural gas stocks to buy for transitional power. 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.