Here’s Why Oakmark Select Fund Backs Targa Resources (TRGP)

3 days ago 4

Soumya Eswaran

Wed, January 14, 2026 astatine 7:53 AM CST 3 min read

Oakmark Funds, advised by Harris Associates, released its “Oakmark Select Fund” fourth-quarter 2025 capitalist letter. Oakmark Select Fund is simply a non-diversified money that aims to present superior appreciation by investing successful mid and large-cap US companies. A transcript of the missive tin beryllium downloaded here. In the quarter, the money (investor class) outperformed the S&P 500 Index, returning 8.42% vs. 2.66% for the index. Communication services and financials were the apical contributors astatine the assemblage level, portion industrials detracted from the performance. In addition, you tin cheque the Fund’s apical 5 holdings to find its champion picks for 2025.

In its fourth-quarter 2025 capitalist letter, Oakmark Select Fund highlighted stocks specified arsenic Targa Resources Corp. (NYSE:TRGP). Targa Resources Corp. (NYSE:TRGP) owns and develops a portfolio of complementary home infrastructure assets. The one-month instrumentality of Targa Resources Corp. (NYSE:TRGP) was -1.15%, and its shares mislaid 12.27% of their worth implicit the past 52 weeks. On January 13, 2026, Targa Resources Corp. (NYSE:TRGP) banal closed astatine $180.28 per share, with a marketplace capitalization of $38.795 billion.

Oakmark Select Fund stated the pursuing regarding Targa Resources Corp. (NYSE:TRGP) successful its 4th fourth 2025 capitalist letter:

"Targa Resources Corp. (NYSE:TRGP) is simply a starring midstream earthy state and earthy state liquids (NGL) company. Targa is portion of a radical that controls 90% of the fractionation capableness successful the largest hub for NGLs successful the world, known arsenic Mont Belvieu. Thanks to the region's unsocial topography and proximity to the Gulf Coast, Targa benefits from meaningful outgo advantages and important barriers to entry. We similar that Targa generates astir 90% of its net done multi-year fee-based arrangements with its lawsuit base, which provides extortion against oversupply oregon re-contracting. Uncertainty astir Permian lipid accumulation maturation has precocious weighed connected the stock price. However, successful our view, Targa remains well-positioned to grow, adjacent if the Permian slows dramatically. We were blessed to acquisition shares astatine a discount to peers based connected normalized net powerfulness and our estimation of intrinsic value."

Is Targa Resources Corp. (TRGP) the Best American Energy Stock to Buy Now?

Targa Resources Corp. (NYSE:TRGP) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 50 hedge money portfolios held Targa Resources Corp. (NYSE:TRGP) astatine the extremity of the 3rd quarter, up from 48 successful the erstwhile quarter. While we admit the imaginable of Targa Resources Corp. (NYSE:TRGP) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.