Mott Capital Management, an investment management company, released its Q4 2025 investor letter. A copy of the letter can be downloaded here. Stock markets paused in Q4, with the S&P 500 trading sideways from October to year-end. In 2025, the MCM Thematic Growth Strategy gained 11.98%, underperforming the S&P 500’s 17.88%, despite some improvements. The AI boom boosted the S&P 500 in 2025. Concerns for AI and related companies include rising debt and the urgent need for R&D investments in advanced software and data centers. Software stocks sharply declined in 2026 due to falling valuations and rising concerns about AI cannibalization. The letter also discussed the effects of the changing trend on the balance in the Thematic Growth Strategy. The Strategy aims to ease the load on mega-cap tech stocks and expects other sectors to become increasingly sensitive in the coming months. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Mott Capital Management highlighted Occidental Petroleum Corporation (NYSE:OXY). Occidental Petroleum Corporation (NYSE:OXY) is an American oil and gas company that engages in the acquisition, exploration, and development of oil and gas properties. On February 26, 2026, Occidental Petroleum Corporation (NYSE:OXY) stock closed at $51.43 per share. One-month return of Occidental Petroleum Corporation (NYSE:OXY) was 13.31%, and its shares gained 5.30% over the past 52 weeks. Occidental Petroleum Corporation (NYSE:OXY) has a market capitalization of $50.724 billion.
Mott Capital Management stated the following regarding Occidental Petroleum Corporation (NYSE:OXY) in its fourth quarter 2025 investor letter:
“I also made a rotational decision to purchase Occidental Petroleum Corporation (NYSE:OXY) at the start of 2026. The energy sector has underperformed in recent years, and I think oil prices are currently depressed. In fact, both Occidental and the energy sector haven’t performed this poorly versus the S&P 500 since the dot-com bubble. Additionally, oil appears to be the only commodity that is not performing well. Occidental seemed like a good way to play a rise in oil prices, given its tight relationship with the commodity. Additionally, it has a strong shareholder base, with Berkshire Hathaway owning more than 26% of the stock. On top of that, the five largest shareholders own a combined 51.6% of the shares, which means that most of the shares are “locked up,” and if buyers step into the name, there will be fewer shares available to buy, potentially adding to an advance.”
