Billionaire Marc Lasry’s Top 5 Stock Picks

3. Sitio Royalties Corp. (NYSE:STR)

Avenue Capital’s Q2 2023 Investment: $13.3 million

Number of Hedge Fund Investors in Q2 2023: 20

Sitio Royalties Corp. (NYSE:STR) is a small royalty company headquartered in Denver, Colorado. It collects a portion of earnings from the sales of natural resources extracted from properties in which Sitio Royalties Corp. (NYSE:STR) holds royalty interests. High oil prices in 2022 bode well for the firm as it beat analyst EPS estimates during the third and fourth quarters. 2023 has seen a mixed bag of performance as Sitio Royalties Corp. (NYSE:STR) missed EPS estimates. However, EPS takes the back foot when valuing royalty interest companies since they bear few expenses apart from administrative overheads and employee salaries.

20 out of the 910 hedge funds polled by Insider Monkey for 2023’s June quarter had invested in Sitio Royalties Corp. (NYSE:STR). Out of these, the largest shareholder is Howard Marks’ Oaktree Capital Management courtesy of a $339 million investment that comes via 12.9 million shares.

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