Andrew Hill Investment Advisors has released its third-quarter 2026 investor letter, reviewing a market pulled in competing directions. Rising oil prices, higher interest rates, and persistent inflation weighed on stocks and bonds, while resilient corporate earnings and continued investment in artificial intelligence supported the broader equity market.
The letter does not report an aggregate third-quarter return for client portfolios. For context, the S&P 500 gained 3.54% through September 22, while the Bloomberg U.S. Aggregate Bond Index declined 2.8%. Oil prices climbed sharply, and the Federal Reserve raised its benchmark rate to 3.75%–4.00%, which the letter describes as its first increase in more than three years.
Exposure to software, AI hardware, and selected strategic investments supported client account performance, although losses elsewhere and rising bond yields offset some gains. The letter highlights a pronounced divide between investment themes: an equal-weight basket of AI stocks returned an average of 13.0% during the quarter, compared with an 8.3% decline for a basket of traditional-economy stocks.
Looking ahead, the firm expects the AI investment cycle to continue but remains cautious about the broader stock market. Its concerns include higher rates, inflation, geopolitical tensions, constrained consumer spending, election uncertainty, and a potential slowdown in AI capital spending as additional computing capacity becomes available. Against that backdrop, Andrew Hill favors companies with solid earnings, higher cash balances, and a gradual increase in fixed-income exposure, noting that high-grade corporate bonds offer yields above 6%.
ONEOK Inc. (NYSE:OKE) is a midstream energy infrastructure company that gathers, processes, transports, stores, and exports energy products in the United States. Its network serves natural gas, natural gas liquids, refined petroleum products, and crude oil markets, connecting production regions with processing facilities and end users. On October 29, 2026, its shares closed at $95.82, an increase of 1.35% from the previous session, with a market capitalization of approximately $60.41 billion.
Here’s what Andrew Hill Investment Advisors has to say about :
“ONEOK 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.”
On October 27, 2026, ONEOK, Inc. (NYSE: OKE) reported third-quarter net income attributable to the company of $1.35 billion, or $2.13 per diluted share, while adjusted EBITDA increased 6% to $2.24 billion. Results benefited from higher energy volumes, including a 16% increase in natural gas liquids raw feed throughput in its Gulf Coast/Permian region. Management raised its full-year adjusted EBITDA guidance to $8.5 billion–$8.6 billion. Reported net income included a $336 million one-time noncash tax benefit, which contributed to the quarter’s earnings increase.
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Disclosure: No material interests to disclose. This article was originally published on Global Market Bulletin.
