Antero Resources (AR) Slid Due to Lower Natural Gas Prices

Market Overview - The US equity market experienced a rally in the third quarter of 2025, with the S&P 500 Index increasing by 8.12% [1] - Bonds also performed well, with the Bloomberg U.S. Aggregate Bond Index rising by 2.03% during the same period [1] Performance Analysis - The composite return for the quarter was 7.22% gross of fees and 7.10% net of fees, which underperformed the S&P 500 Index's gain of 8.12% [1] - The underperformance of the strategy was attributed to security selection [1] Company Focus: Antero Resources Corporation - Antero Resources Corporation (NYSE:AR) is an oil and natural gas development and exploration company based in Denver, Colorado [2] - As of November 13, 2025, Antero Resources' stock closed at $34.34 per share, with a one-month return of 11.57% and a 52-week gain of 12.63% [2] - The market capitalization of Antero Resources Corporation is $10.594 billion [2] Performance Challenges - Antero Resources Corporation detracted from performance in the third quarter due to lower natural gas prices, which caused earnings volatility due to the company's unhedged production profile [3] - Pipeline constraints and seasonal infrastructure limitations led to Antero's gas realizations trading at steep discounts to NYMEX benchmarks, despite strong operational execution [3] Long-term Outlook - The long-term outlook for natural gas demand remains positive, driven by increasing demand for natural gas for AI data center power generation and growing U.S. LNG export infrastructure [3] Hedge Fund Interest - Antero Resources Corporation is not among the 30 most popular stocks among hedge funds, with 72 hedge fund portfolios holding the stock at the end of the second quarter, up from 67 in the previous quarter [4] - While Antero Resources has investment potential, certain AI stocks are believed to offer greater upside potential and less downside risk [4]