Should You Hold Texas Pacific Land Corporation (TPL)?
Horizon Kinetics LLC, an investment management company, released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The letter discussed global macroeconomic landscape and a comprehensive discussion about plans. You can check the fund’s top 5 holdings to know more about its best picks for 2023.
Horizon Kinetics featured stocks like Texas Pacific Land Corporation (NYSE:TPL) in the fourth quarter 2023 investor letter. Headquartered in Dallas, Texas, Texas Pacific Land Corporation (NYSE:TPL) is a landowner in the State of Texas that engages in land and resource management, and water services and operations businesses. On February 23, 2024, Texas Pacific Land Corporation (NYSE:TPL) stock closed at $1,561.36 per share. One-month return of Texas Pacific Land Corporation (NYSE:TPL) was 2.66%, and its shares lost 12.26% of their value over the last 52 weeks. Texas Pacific Land Corporation (NYSE:TPL) has a market capitalization of $11.973 billion.
Horizon Kinetics stated the following regarding Texas Pacific Land Corporation (NYSE:TPL) in its fourth quarter 2023 investor letter:
"An important tipping point was reached in many portfolios last year. It took a half-dozen years and is the result of one of the two greatest positive forces in investing: compounding. We’re not referring to the very visible Texas Pacific Land Corporation (NYSE:TPL) position. That is the product, for older-vintage accounts, of 10 to 15 years of compounding. The greater the weight a successful strategic position like that becomes, the more volatile a portfolio will be, since an individual stock will vary more than a portfolio of stocks.
In 2022, TPL was visibly responsible for such accounts appreciating substantially during a year when the stock market was down substantially. In 2023, TPL was responsible for those accounts declining modestly while the market was up substantially.
What wasn’t very visible is that, after a half-dozen years of compounding, a second strategic position in older-vintage accounts also achieved an important critical mass. Its appreciation in the final quarter of 2023 substantially offset the TPL decline during the period. 10 This is the Grayscale Bitcoin Trust (GBTC). In rough terms, averaged across the group of such accounts, its 80% appreciation offset about three-quarters of the 33% decline in TPL..” (Click here to read the full text)
Aerial view of a busy water resource management facility, with a river running through it, dotted with homes.
Texas Pacific Land Corporation (NYSE:TPL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Texas Pacific Land Corporation (NYSE:TPL) was held by 19 hedge fund portfolios, down from 21 in the previous quarter, according to our database.
We discussed Texas Pacific Land Corporation (NYSE:TPL) in another article and shared Wedgewood Partners' views on the company. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
