Andrew Hill Investment Advisors recently released its third-quarter 2026 investor letter. A copy of the letter can be downloaded here. The fund navigated a mixed third-quarter investment environment in which rising oil prices, higher interest rates, and persistent inflation created headwinds for equities and bonds, although strong corporate earnings and continued AI investment helped support the broader stock market. The letter does not disclose an aggregate third-quarter return for client portfolios, but the S&P 500 gained 3.54% through September 22, while the Bloomberg U.S. Aggregate Bond Index declined 2.8%; meanwhile, oil prices rose sharply, and the Federal Reserve increased the federal funds rate to 3.75%-4.00%, its first rate hike in more than three years. Performance across client accounts benefited from exposure to software, AI hardware, and selected strategic investments, while losses in other areas and the sharp rise in bond yields offset some gains; the average equal-weight basket of AI stocks returned 13.0% during the quarter versus an 8.3% decline for the traditional-economy basket. Looking ahead, Andrew Hill expects the AI investment cycle to continue but remains cautious about the broader equity market because of rising rates, inflation, geopolitical risks, tight consumer spending, election uncertainty, and the possibility that the pace of AI capital spending could slow as additional computing capacity comes online; the firm therefore favors earnings-focused investing, higher cash balances, and gradually increasing fixed-income exposure, particularly as high-grade corporate bonds offer yields above 6%. In addition, please check the Fund’s top five holdings to know its best picks in 2026.
In its third-quarter 2026 investor letter, Andrew Hill Investment Fund highlighted stocks like ONEOK, Inc. (NYSE:OKE). ONEOK, Inc. (NYSE:OKE) is a midstream energy company operating pipelines, processing facilities, and storage assets across the U.S. energy value chain. The one-month return of ONEOK, Inc. (NYSE:OKE) was -6.08% while its shares traded between $64.02 and $99.85 over the last 52 weeks. On October 7, 2026, ONEOK, Inc. (NYSE:OKE) stock closed at approximately $88.06 per share, with a market capitalization of about $56.75 billion.
Andrew Hill Investment Fund stated the following regarding ONEOK, Inc. (NYSE:OKE) in its Q3 2026 investor letter:
“ONEOK, Inc. (NYSE:OKE) is a leading midstream energy company that owns the pipelines, processing facilities, and storage assets needed to move natural gas and natural gas liquids from production regions to end markets. Similar to our thesis with Cheniere, we are attracted to the company’s infrastructure-based business model, which benefits from volumes flowing through its network rather than relying on commodity price speculation. Recent acquisitions have expanded ONEOK’s footprint across the U.S. energy value chain, increasing the scale and strategic importance of its asset base. As domestic energy production continues to grow and natural gas demand remains supported by LNG exports and rising power consumption, we believe ONEOK is well positioned to benefit from these long-term trends (Click Here To Read the Letter In Detail).”
