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Here’s Why Natural Resource Partners (NRP) Landed in Pernas Research’s Top Contributor List

Pernas Research, an investment management firm, released its third quarter 2023 investor letter, a copy of which can be seen here. In the third quarter of 2023, Pernas Research delivered a year-to-date return of 34.9%, surpassing the performances of both the S&P 500 (13%) and the Russell 2000 Index (2.6%) during the same period. Take a moment to review the fund's top 5 holdings to gain insights into their primary investment choices for 2023.

In its Q3 2023 investor letter, Pernas Research mentioned Natural Resource Partners L.P. (NYNSE:NRP) and explained its insights for the company. Natural Resource Partners L.P. (NYNSE:NRP) is a Houston, Texas-based mineral reserve company with a $1.0 billion market capitalization. Natural Resource Partners L.P. (NYNSE:NRP) delivered a 48.61% return since the beginning of the year, while its 12-month returns are up by 87.99%. The stock closed at $80.74 per share on December 08, 2023.

Here is what Pernas Research has to say about Natural Resource Partners L.P. (NYNSE:NRP) in its Q3 2023 investor letter:

"Natural Resource Partners L.P. (NYNSE:NRP) was a significant contributor to portfolio outperformance, being up almost 40% from when we initiated a position in March 2023. Although it is trading closer to fair value, we are holding due to a combination of a competent and shareholder aligned management team along with the upside potential of carbon sequestration. Carbon sequestration is in the sights of numerous companies given the recent $3B in funding the Infrastructure Investment and Jobs Act (‘IIJA’) provides for carbon capture. NPR owns the mineral rights to 13mm acres in the Appalachia Basin and Wyoming and has signed carbon sequestration agreements with Denbury and Oxy given it possesses the needed prerequisites: These being the right geography, proximity to emissions sources, and large contiguous acreage. So far these agreements allow Denbury and Oxy to sequester almost 800 mm metric tons of CO2. The potential of carbon sequestration segment is vast and the current management team is positioned to take full advantage of it."

Aerial view of an expansive mining plant with a large conveyor system and excavation machinery.

Our calculations show that Natural Resource Partners L.P. (NYNSE:NRP) does not belong on our list of the 30 Most Popular Stocks Among Hedge Funds. We also mentioned Natural Resource Partners L.P. (NYNSE:NRP) in another article.

Natural Resource Partners L.P. (NYNSE:NRP) was in 5 hedge fund portfolios at the end of the second quarter of 2023, compared to 6 funds in the previous quarter. Natural Resource Partners L.P. (NYNSE:NRP) delivered a 23.83% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.

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Disclosure: None. This article is originally published at Insider Monkey.

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